4 Mistakes High Net Worth Couples Should Avoid in Illinois Divorces

 Posted on December 19, 2018 in Family Law

It does not matter whether you have $100 in your bank account or all of the money in the world -- divorce is just as tough, both emotionally and financially, whether you are rich or poor. Many people think that couples who have more money tend to have an easier time if they get divorced, but that is not actually true. If anything, these couples experience just as much, if not more stress than couples with fewer assets. High net worth couples getting a divorce have a lot at stake, which is why it can be so emotionally and financially demanding for them. Here are just a few mistakes you should try to avoid if you have extensive assets and you are getting a divorce:

1. You Attempt to Hide Assets From Your Spouse

This mistake is a big no-no. Hiding assets from your spouse is not only rude, but it is illegal. When you enter into the divorce process, you are required to disclose all of your marital assets, which can be anything from checking and savings accounts to retirement accounts to vehicles and jewelry. Bottom line, do not try to hide assets from your spouse and his or her lawyers -- they will find out and you will pay for your actions.

2. You Forget About Tax Implications

Taxes are not something on most people's minds when they are getting a divorce. You are mostly focused on the here and now -- not what you will be paying in the future. Forgetting about tax implications is a costly mistake. Take spousal support for example -- currently, the person who pays it can deduct it from their taxes, and the person who receives it must report it on their taxes. This changes next year though, where the payor cannot deduct it, and the payee does not have to report it. Either way, tax implications can have a role in decision-making during your divorce.

3. You Do Not Involve a Financial Adviser

If you have various assets that are worth quite a bit of money, hiring a financial adviser is a good idea. They can help you understand what each asset is worth, and they can also help you understand the tax implications of such decisions. A financial adviser can help you make sure you are making the best decision possible by analyzing different asset division scenarios.

4. You Do Not Hire a DuPage County High Net Worth Divorce Attorney

One of the smartest and most important things you can do when you in a high net worth divorce is to hire a knowledgeable Hinsdale, IL high net worth divorce lawyer. At the Law Office of Martoccio & Martoccio, we have extensive experience litigating divorces with all kinds of assets, including high-value assets. We understand that high net worth divorces can be trickier than run-of-the-mill divorces and can help you through every step of the process. For more information, call our office today at 630-920-8855 to set up a free consultation.

Sources:

https://www.chicagobusiness.com/custom-media/wealth-divorce-roundtable.html

https://www.dmagazine.com/sponsored/2018/11/the-high-net-worth-divorce/

https://www.forbes.com/sites/davidrae/2018/10/25/divorce-financial-mistakes/#36a80b117eda

https://karencovy.com/10-financial-mistakes-in-divorce-you-dont-want-to-make/