Divorce becomes more complex when it involves valuable assets. Sorting out the dissolution of marriage and child custody, if applicable, already takes time. When millions are at stake, the property division takes even longer.
Spouses would have to prepare more documents, determine the value of their assets and possibly dispute alimony requests. With the additional steps of a high-asset divorce, spouses should not rush the process to avoid making financial blunders.
Look into marital debts
Apart from listing marital assets, spouses should know their marital debts and the possibility of having to pay them. That is why their financial statements must be thorough and precise to reflect all assets and liabilities. It is also important to check for debts on joint credit cards and marital businesses.
Don’t hide assets
Full disclosure of local and overseas assets may help quicken the process. If a spouse does otherwise, the other spouse may question the completeness of the list of assets. To make things worse, a spouse who hides assets could get penalties for fraud or contempt of court.
Consider other expenses
It is vital for spouses to consider the taxes they might have to pay. These include gift and capital gain taxes when transferring or selling assets during property division. They should also factor in the tax liabilities of the assets they will gain from the divorce.
If the spouses are parents, they should also consider the costs of child support. Such expenses would cover their kids’ basic needs, education, health care and extracurriculars. A spouse may even request a life insurance policy to cover child support in case the other spouse dies unexpectedly.
Don’t do things on your own
Handling the financial and legal matters of your divorce while dealing with high emotions could be overwhelming. In high-asset divorces, spouses usually get the services of attorneys, real estate appraisers and finance professionals.
Forming a team of skilled professionals may help you determine the right value of your assets. Moreover, having a team can ensure that you get your reasonable share as you transition into singlehood.
