For some people in Florida, the decision to divorce can bring about feelings of relief and happiness. For others, it can intensify their feelings of hurt and abandonment. People who are involved in high-asset divorces should not let their feelings get the best of them during this time in their lives. Their emotions can distract them from the big picture and make it harder for them to protect themselves and move on, resulting in them getting less than their fair share in their divorce settlements.
With so much at stake in a high-asset divorce, here are some common mistakes that separating couples should try to avoid.
Not identifying all assets
Both parties in a divorce need to disclose all assets. Spouses should not assume that the only assets their partners have are the ones that are jointly titled. It is important for them to identify and make copies of all financial records, including tax returns, W-2s, 1099s, bank accounts, retirement assets and any other asset that has value. They should also look at their monthly finances and provide an accounting for every single expense. If they expect their financial situation to change after their divorce, they should create a projected budget of their future expenses so they have a good idea of their current and post-divorce financial situations.
Not disclosing all pertinent information
Some people who have substantially higher net worths than their partners do not believe that they should split all their assets with their soon-to-be ex-spouses. They may attempt to omit or hide assets by transferring them to third parties and other means. Hiding assets is illegal and can severely affect their credibility, resulting in a less than favorable outcome. It is important for couples to provide the courts with the most accurate and truthful accounting of their assets and financial situations to prevent complications.
There are many steps people can take to protect themselves during divorce. However, they should take the time to prepare themselves for the process, investigate all sources of income and assets, and keep their emotions in check so they can avoid making mistakes that may cost them.