Everyone makes mistakes. We learn from our mistakes, and we pay for our mistakes. But making a mistake in a high asset divorce can be a mistake whose costs are often unknown, unappreciated, or undervalued, and can have lasting impacts on the unwary. The lessons learned are often wasted as one does not have the occasion to make them again.
A divorce lawyer experienced in high-asset divorces can help protect a client from the mistakes that individuals are prone to make. They are used to the pressures and the emotions. They are patient and prepared and can help ensure that their clients are both. They can also help a client avoid unreasonable positions that will cost them more in the long run.
Below are some high asset divorce mistakes to avoid making:
1. Being Impatient.
Often, one or more of the parties to a high-asset divorce is impatient with the process. Divorces are painful for both parties, even for those who “want” the divorce. The thought is that if they hurry through the process the pain will be less or lessened. However, impatience in a high-asset divorce can cause lasting pain. In a hurry to move on, a party may:
Agree to take less than they should
Fail to adequately evaluate alternatives
Fail to properly value the assets involved
Agree to take cash instead of an asset whose value is unknown or whose liquidity is questioned
Fail to consider the tax impacts of an asset or the transfer of its ownership
Fail to objectively value the assets at stake
2. Being Unprepared.
One of the biggest mistakes that individuals make in a high-asset divorce is to begin the process without preparing for it. This does not mean that assets should be hidden, or any fraudulent conduct should take place. However, there are things that can be done in anticipation of a high-asset divorce that can result in a more advantageous position in the divorce or a better outcome at the end of it. You don’t enter a marriage without planning for it, and there is usually a lot more to consider when dissolving one.
3. Being Unreasonable.
Emotions run high in every divorce. Pain, anger, frustration, and disappointment are just a few of the myriad emotions that a couple will face during the process. However, making tactical or strategic decisions when clouded by emotions or in seeking to address an emotion rarely results in improving one’s financial position. Being unreasonable when it comes to making decisions on asset division or a negotiation strategy usually costs more in attorneys’ fees at a minimum but more often also results in a diminished financial position. Emotions will lessen and heal. Financial implications cannot usually be undone.
4. Being Unrepresented.
Many individuals facing a high-asset divorce foolishly try to do it themselves or try to save money by not hiring an experienced lawyer soon enough. This always costs more in the long run, either in additional attorneys’ fees or in a diminished financial outcome.