The more complicated the divorce, the more unnerving it can become. Unless you go into it with the right attitude, you may seriously impair your financial future.
Here are five mistakes to avoid, especially if you face a high-asset divorce.
1. Giving in to guilt
If you are the spouse who wanted out of the marriage, you may deal with feelings of guilt, especially if the other party is in the doldrums about the impending divorce. He or she may feel betrayed, and you may want to soothe your guilty conscience by giving up more than you should in the divorce. Think of this as a business transaction and always keep your financial future top of mind.
2. Being too agreeable
If you are beyond anxious to get out of the marriage, you are probably willing to agree to just about anything the other party wants. Take a deep breath and think logically. Being too agreeable when it comes to matters of alimony or property distribution can wreck your financial goals.
3. Forgetting about tax implications
Tax consequences are a vital consideration in high-net-worth divorces. Remember that you will pay taxes on certain assets you receive. If the court awards you alimony, you need to know how much you will clear after taxes.
4. Avoiding an investigation
In many divorces, hidden assets become a factor. Do not hesitate to add an appraiser or a forensic accountant to your legal team if you suspect that your spouse may try to keep marital assets of some kind off the table.
5. Listening to your friends
Your friends, some of whom may have experienced a divorce proceeding of their own, may try to offer advice regarding yours. They no doubt mean well, but do not take their advice to heart. Every divorce case is unique. Only rely on the advice of your legal team to assure yourself of the best outcome possible. Remember that mistakes can jeopardize your objective of a secure financial future.