Some of the most complex divorces involve extensive property and assets, which is why people of high net worth often have the hardest time finalizing the process. People of high net worth are any individuals who have $1 million in liquid assets at any time. These individuals often have extremely complicated financial portfolios and might have several real estate properties and businesses as well. If they never signed a prenuptial agreement (prenup) before marrying, California law requires that each spouse split community assets exactly in half. If you’re facing a similar situation, here are 3 mistakes others have made that you should avoid repeating.
Mistake #1: Hiding Assets
People of high net worth are the most likely to try and hide away pockets of assets where their spouse can’t find them. However, they might not be able to hide this financial trail from a good forensic accountant. If your spouse or your spouse’s attorney thinks you might be hiding assets from the property division process, they might hire a forensic accountant to try and find out the truth. Not only will you lose out on the money you’ve been trying to keep safe, but your gestures will be viewed as fraudulent by the court and you will lose credibility (which could cost you more in the settlement later).
Mistake #2: Agreeing to Anything
Some people want out of their marriages so badly they will agree to any terms and conditions regardless of the consequences. However, barring a circumstance involving domestic abuse, don’t rush into any decision regarding your marriage that could affect your financial future. Have a skilled attorney look over the terms of alimony or division of assets and debts to ensure you’re not losing out on potentially thousands of dollars to your ex.
Mistake #3: Not Considering Tax Consequences
Many people make this mistake, regardless of whether or not the financial stakes are high. Tax considerations are an enormous aspect of high net worth divorces. For example, did you know that you will have to pay taxes if you and your spouse decide to sell the house? Likewise, if your spouse keeps the house and you pay out your ownership of the home, you will have to pay a tax on that profit. Taxes can account for a huge chunk of change after the divorce is over, which many don’t expect. Talk to a certified financial divorce specialist or an accountant specializing in divorce to find out what the potential tax consequences might be in your divorce.
If you have more questions or you would like to get started on the divorce process, our skilled Rancho Cucamonga divorce attorneys can help. Our dedicated lawyers can provide you with experienced advocacy and excellent service. Let us see how we can help you meet your legal goals.
Contact us at (909) 726-7112 today!