Mistakes to Avoid in Your High Net Worth Divorce

 Posted on January 19, 2021 in Family Law

People often think that only celebrities and the very wealthy go through high net worth divorces. While it is true that these are the stories picked up by the news outlets, high net worth divorces are much more common than people think. Owning multiple real estate properties, complex retirement savings, and more common factors can result in a divorce being classified as one that involves a high net worth.

High asset divorces are much more complex than other divorce cases, and mistakes are sometimes easily made. If you are going through a high net worth divorce, avoid making the most common mistakes and protect your rights.

Not Working with Professionals

Going through a divorce without professional help is not generally recommended. When a divorce involves a high net worth, however, you must work with professionals. You should work with a financial adviser that can help you sort through complex issues such as pensions or business valuations. You should also work with a lawyer that can explain Illinois’ property division laws and more.

Hiding Assets

People that have high net worth also often have the means to hide assets, such as transferring funds to a foreign bank account. However, this is a mistake that is much too commonly made in high net worth divorces. If you are found to have hidden assets, it will hurt your credibility throughout your case. You will have also violated the law. A judge may use this against you and may even order you to pay restitution to your spouse.

Ignoring Tax Implications

A number of tax issues are present in most high net worth divorces. Spouses that are awarded certain assets may have to consider the taxes that are associated with them, or the divorce could present capital gain issues. These are just a few of the tax implications a high net worth divorce will involve, and they are all complex. You should always work with a tax specialist that can advise you of the tax implications so you will be fully prepared post-divorce.

Rushing the Process

No one wants their divorce case to drag on for months or even years. Unfortunately, high net worth divorces are full of very complex issues. Rushing the process will likely end with you giving up more assets than necessary, and not securing the favorable settlement you may deserve. If you need to change the divorce decree in the future, it is not an easy process. The best advice is to take your time initially to fully understand the law as it applies to your case, and give your lawyer sufficient time to negotiate a fair settlement.

Our Illinois Family Lawyers Are Experienced in High Net Worth Divorces

If you are going through a divorce that involves a high net worth, it is critical that you speak to a skilled Hinsdale family lawyer as soon as possible. At the Law Office of Martoccio & Martoccio, we know the challenges high asset divorces bring, and how to overcome them to secure the most favorable outcome for you. Call us today at 630-920-8855 or contact us online to schedule a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000