mistakes to avoid in a high net worth divorce
Whether you’re a couple with a few million in the bank or multi-billionaires, divorcing can be a challenge. While every divorce is unique, there are some mistakes that high net worth couples make that can cost them dearly. Here are four to avoid.
Not having a clear understanding of your financial situation
Not having a clear understanding of your financial situation can lead couples, spouses, and partners into financial knots. With more money often comes more problems in terms of organizational expectations, estate planning, and other considerations. Mismanaging these could result in not getting the full benefit of the couple’s investments without any sort of clarity. Knowing one’s financial situation is important during divorce proceedings when the couples need to sort out their assets. Achieving clarity in such scenarios will help couples move on with less stress and strain financially.
Refusing to compromise
Refusing to compromise can be catastrophic when high net worth couples find themselves facing divorce. Courtrooms can become a battle ground for expensive legal disputes that may last for months or even years. It is important to have a mutual agreement on how to divide assets and negotiate other issues. Many high net worth divorce cases could have easily been resolved without an ongoing court process. Therefore, it pays to practice compromise rather than refusing it outright.
Trying to go through the process alone
Navigating divorce as a high net worth couple can be an overwhelming process, particularly when attempting to do it alone. The adversarial nature of divorce court may not provide couples with the result they desire due to its “winner-takes-all” mentality. Legal advice is often recommended in cases of divorce, but couples may be overwhelmed of how to access this advice. Mediation can be a helpful alternative for when legal counsel offers little benefit. It can provide divorcees with control over the process without having to compromise their joint finances at the same time.
Letting emotions get in the way
Many couples who divorce have significant assets and a high net worth. This can make divorce an especially complicated process, since emotions often run high and both parties want to get the maximum economic benefit from the division of assets. Unfortunately, letting emotions get in the way of divorce settlement negotiations only stands to create further complications for themselves and those around them. Choosing divorce mediation instead of court proceedings is the best way for couples to ensure their divorce is concluded in an amicable manner without compromising their interests or those of their family.
Not seeking professional help
Not seeking professional help for divorce can be a mistake for couples of any net worth level. If a divorce involves significant assets or complex matters, it’s especially important to obtain professional guidance from an experienced mediator. For couples with high net worth, not leveraging the expertise of these professionals can result in a divorce agreement which is disadvantageous and may hurt long term financial stability. Without the proper guidance from experienced mediators, undue stress on each spouse in addition to potential financial consequences could be avoided in such cases.
All in all, it’s important to remember that when it comes to a divorce it is not a decision to be taken lightly. Common mistakes such as hiring an inexperienced lawyer, not understanding your financial status, refusing to compromise, going through the process alone and letting emotions take over can make for a difficult time for both parties involved. The best way to ensure a good outcome is to seek professional help and properly think through your decision making. If you’re dealing with high net worth divorce or prefer mediation services instead of litigation, don’t overthink it – contact us today. We will be sure to give you the care and expertise that you need and work with you toward the best solution possible.