Mistakes to Avoid in a High Asset Divorce
Divorce is an event that occurs in roughly 50% of marriages, making it one of the most common family law issues. Divorce encompasses many elements, from property division to child support to child custody to alimony.
These elements are often complicated when there are more assets involved. This is called a high asset divorce and it is not an easy thing for anyone to go through. Unsurprisingly, assets are one of the biggest issues in a high asset divorce.
When a person is unfamiliar with the legal processes, they are bound to make mistakes. However, in a high asset divorce, the mistakes can be very costly. They can cause you to lose a lot of money and even face criminal charges. Here are some mistakes you need to avoid.
Poor Recordkeeping
You must be able to have an inventory available of all your assets and debts. Kentucky is an equitable distribution state, so you want to make sure you have accurate records of everything you own so it can all be split properly. You do not want to lose out.
Hiding Assets
Do not intentionally hide assets. You may think you are being sneaky and protecting yourself, but you are opening yourself up to criminal charges. Your spouse’s lawyers will investigate your assets and they will find anything you are hiding. Be honest about what you have. Otherwise, you can face serious penalties, including jail time. And if you think your spouse is hiding assets, speak up. Your lawyer can help you investigate and ensure you get your fair share.
Not Thinking About the Tax Consequences
Property division in a divorce can come with tax consequences. Asset transfers, alimony payments, or capital gains can all lead to taxes, so consult with an accountant or financial planner during the divorce process so you know what to expect. You do not want to be surprised when tax season comes along.
Getting Too Emotional
Divorce can be highly emotional, especially if you have been married for a long time. However, you cannot allow your emotions to guide your divorce. While you do need to acknowledge your feelings and work through them in a healthy way, you cannot let your feelings take control of your decisions. You need to have the clarity of mind to think things through. You may need to seek the help of a therapist who can help you understand your emotions.
Not Having Adequate Legal Help
One of the biggest mistakes is not having adequate legal counsel throughout the entire divorce process. When a high net worth is involved, complexity builds fast. You need an experienced lawyer on your side to protect your legal rights and help you make the right decisions about your assets.
Contact Us Today
Divorces are emotional events. Many couples fail to plan, especially when there are a lot of assets involved. This makes the process as well as post-divorce life more complicated.
High asset divorces are complicated and people make mistakes, but Velez Law, PLLC can make things easier. Schedule a consultation today by clicking below:
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