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Costly Mistakes to Avoid in a High Asset Divorce

Posted on in High Asset Divorce

Costly Mistakes to Avoid in a High Asset DivorceA couple in a high asset divorce has more at stake in the division of property – and more to lose if they make a mistake. A poorly conceived divorce agreement could cost you a small fortune in lost or squandered assets. Once the agreement is approved, you will not get a do-over unless you can prove that your spouse intentionally deceived you during your divorce or you signed the agreement under duress. To avoid having remorse over your high asset divorce, you should do your best to get your agreement right the first time.

Dig Deep

The main way that a high asset divorce is different from other divorces is the number and variety of marital properties. You need to thoroughly investigate your spouse’s finances to see whether there are hidden assets, such as:

  • Undisclosed bank accounts
  • Marital assets within a business
  • Business assets purchased with marital money
  • Secret retirement accounts
  • Secret collections of luxury items
  • Undisclosed real estate
  • Marital assets being loaned to a friend

It is fraudulent for your spouse to hide marital assets if your spouse is actively trying to deceive you. Your spouse might not be at fault if you overlook assets that a reasonable investigation would have discovered.

Accurate Valuation

Once you have found all of your marital properties, there is still the work of determining their value. The complex properties in a high asset divorce can be difficult to value – let alone agreeing with your spouse on the value. You need to consider not only the current value of the property but whether it is likely to increase in value. A seemingly balanced division of property could become lop-sided if your spouse’s properties have a higher potential for growth.

Tax Consequences

Owning some marital properties after divorce means that you will be responsible for paying taxes on them. This is most consequential when dividing up real estate, such as homes. You should include property taxes on a home as part of the equation when determining the value you will receive from your divorce.

You should also consider how your divorce will affect your income taxes. Will you and your former spouse be in different tax brackets? Are there tax exemptions and deductibles that you will no longer qualify for? Keep in mind that the alimony tax deduction is no longer available to new divorcees.

Contact a St. Charles, Illinois, Divorce Attorney

When going through a high asset divorce, you need an attorney who is familiar with working with valuable and varied marital properties. A Kane County divorce lawyer at Goostree Law Group is ready to help you settle your high asset divorce. To schedule a free consultation, call 630-584-4800.

Source:

https://www.forbes.com/sites/russalanprince/2014/12/01/getting-the-most-from-a-high-dollar-divorce/#6591acce7d66

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