While going through your high net worth divorce in the Southern California area, it is important to be careful about how you handle key decisions. The decisions you make now will have an immediate and lingering impact on your and your kids’ lives after the judge issues the final divorce decree.
Divorce is not easy, especially for individuals who have so much at stake. You might feel pressured and confused while you contemplate important issues, such as alimony, child support, custody and the division of marital assets. Take some time to review two common mistakes made in high-value separations so you can avoid them.
Hiding assets from the spouse
You are probably well aware that you live in a community property state. All marital assets are subject to equal division. This might not seem fair if you were the higher earner throughout the relationship. The one thing you should never resort to during a divorce is misleading your spouse and the courts about your assets. You might think you can get away with it, but you could end up losing some of your share if you get caught. There are also the criminal consequences for you to consider since hiding assets in a divorce is a crime.
Not considering how the settlement affects your tax situation
In a high-value divorce, the settlement involves a large transfer of assets, money and accounts. You should carefully evaluate how potential agreements affect your tax situation. You might want to work with a financial expert and attorney so they can help you determine which assets and accounts you should keep, exchange and compromise on.
To keep emotions out of the way of decision-making, many people find it beneficial to receive guidance from their attorneys. If you want to learn about how to protect your assets in your divorce, speak with an attorney to learn high net worth divorce strategies to help you get a better outcome.