All divorces have their challenges. However, when a divorcing couple has high-dollar assets, dissolving a marriage has the potential for high drama. Divorces involving the division of large amounts of money may incentivize both sides to dig in their heels. The decisions about the division of high-dollar assets may have long-term tax implications. You have every right to fight for the assets you deserve. You don’t have to face this difficult time alone.
While there is no way to guarantee an outcome, educating yourself with some divorce financial planning and working with an experienced Huntsville, Alabama, divorce attorney can optimize your chances of a favorable result. It’s important to make forward-looking decisions based on trusted legal guidance. Keep reading to learn more about the dos and don’ts of high-net-worth divorce, the steps you should take to protect your assets, and why hiring a high-asset divorce attorney could help your case.
The following steps can help position you for a positive outcome in your high-net-worth divorce:
Understand Your Assets
One of the most critical steps you can take as you begin the process of a high-net-worth divorce is to take stock of your assets. While these may include obvious items like houses, cars, household goods, and jewelry, they may also take less tangible forms such as stocks, bonds, and retirement accounts. Consider the implications of any intellectual property in divorce. Look carefully at whether generational wealth or assets bound up in business partnerships may also be relevant in your situation.
Divorce financial planning should take place at the beginning of a divorce process. Dividing assets in divorce can present some of the most significant challenges to resolve. You can avoid headaches by proactively engaging in early assessment and valuation.
Consult a Professional
Divorce law can be challenging to understand, and a lack of knowledge can often prove costly in high-asset divorces. By engaging a legal professional with experience in high-net-worth divorces, you may save yourself considerable money in the long run. You also may need to work with a financial planner who can help you understand the tax implications of divorce so you can protect your assets.
Stay Updated on Jurisdictional Rules
Each state has its own complex divorce statutes, and Alabama is no exception. By familiarizing yourself with the rules in your state, you can avoid unexpected legal obstacles.
However, many high-net-worth divorces involve assets across states or countries, which can lead to costly and protracted proceedings. In such cases, mediation may be a more efficient and cost-effective way of reaching a division of assets acceptable to both sides. Trust a professional to help you understand the applicable jurisdictional rules, whatever path you choose.
Address Involvement of Third Parties
Divorce asset evaluation often requires assessing issues involving third parties. For example, if trusts play a role in the assets of either your family or your spouse, you should take the time to evaluate how these entities will affect the divorce.
Similarly, if you and your spouse are involved in a family business, you must understand how the divorce will affect the operation of the business.
Before you begin dividing assets in divorce, it is crucial to consider how future tax statuses will affect your assets. While future finances are notoriously tricky to predict, a savvy financial advisor can help you navigate the shifting terrain of your post-divorce financial landscape.
Address All Debts and Liabilities
Planning for divorce involves the equitable division of debts and assets. Be sure to avoid creating more debt by closing any joint accounts immediately. You and your spouse can negotiate who will be responsible for paying each debt incurred during the marriage. These debts may include money owed to friends and family members.
Making it through a high-net-worth divorce often means avoiding specific actions as well. Here are some tips:
Avoid Quick Decisions
Haste makes waste, especially when it comes to divorce financial planning. The emotional toll of divorce can sometimes become overwhelming. Don’t let the emotions of the moment cause you to make rash decisions. Consider each decision carefully and rely on the objective guidance of legal professionals to help make well-founded decisions.
Don’t Go Solo
High-asset divorces are not Do-It-Yourself divorces. More money is at stake in a high-asset divorce. You should always have an experienced legal representative to help things move efficiently and effectively.
When marriages dissolve due to betrayal or grievance, spouses often feel tempted to use the divorce to get revenge. However, it is crucial to remember that this is a legal process, not a vehicle for settling a personal score. The consequences of vindictive actions during a divorce may have long-term emotional and financial implications.
Don’t Overlook the Details
Some assets are worth more than others. Nevertheless, you should take into account even the lower-value assets in discussions of division of assets. Being transparent and honest about all the details can save time and prevent stress.
Don’t Get Lost in Legal Jargon
Many legalities involved in divorce proceedings are complex, but you can empower yourself by hiring a high-asset divorce attorney to help you understand as much as possible. Your lawyer can answer your questions and clarify your legal options.
Reach out to Leigh Daniel Family Law Today
If you are in the process of dissolving a marriage with high-value assets, you may be feeling nervous about whether you will be able to keep what is most important to you. While these nerves are understandable, it is essential to remember that you are not alone in this journey. Working with a high-asset divorce attorney can give you comfort and peace of mind as this process unfolds.
The experienced Huntsville high asset divorce attorneys at Leigh Daniel Family Law have helped many clients seek favorable resolutions in their high-net-worth divorces in Alabama. Our legal team is focused on helping clients seek positive change. We want to help set you up for a stable financial future. With the right strategies and awareness of the potential pitfalls, we can help you succeed in this transition. Contact us today for a confidential consultation to learn more about your legal options.