As the song goes, “Mo Money Mo Problems.” When it comes to high net worth divorces, this phrase often rings true. Divorces involving significant assets can become more contentious due to the sheer complexity of dividing wealth.
High-asset spouses face more intricate legal hurdles, jurisdictional challenges and third-party claims. Additionally, the higher stakes can fuel emotional conflicts and prolong the process.
High-asset divorces contain unique issues
All divorces have their challenges, but high net worth divorces come with their own set of issues. Some of the complicating factors include:
- Wealthy couples often have a wide variety of assets, each governed by different sections of the law. This can include trusts, foreign holdings and multiple properties.
- High net worth individuals may have assets that are difficult to define or value, such as businesses or art collections.
- Assets may exist in different states or countries and involve multiple jurisdictional districts, adding layers of complexity.
- Family members or other third parties may have financial stakes or legal claims.
- More assets mean more decisions and interactions, which can lead to heightened conflict.
These factors make high-asset divorces particularly challenging and require careful planning and thorough legal and financial advice.
Keeping emotions in check
Focusing on your long-term economic well-being is crucial in a high-asset divorce. The emotional toll can be significant, but letting feelings drive your decisions can lead to costly mistakes. To protect your financial future:
- Seek counsel immediately: Speak with a lawyer as soon as you consider divorce. An experienced attorney can help with complex legal issues and ensure you understand your financial situation.
- Get a skilled lawyer, not a combative one: Choose a lawyer who is thorough and calm rather than aggressive. A thoughtful approach can save you time, trouble and money in the long run.
- Don’t forget about debt: Consider household debts when dividing assets. Liabilities should be divided fairly, just like assets.
- Focus on the future: Think beyond the immediate division of property. Consider the long-term value of your assets, tax implications and any plans for children. A financial advisor can help you make informed decisions.
- Avoid vindictive behavior: Using the divorce process to punish your ex will only prolong the ordeal and increase costs. Focus on achieving a fair settlement.
Divorce is challenging, but throttling down your emotions and focusing on your long-term goals can help make the process smoother. An experienced attorney can guide you through the complexities and protect your interests.