Anyone anticipating a high net-worth divorce in Michigan should have a Michigan divorce lawyer who has experience handling high-asset divorces to avoid mistakes. Whether you are in the early planning stages for a high net-worth divorce or your divorce proceedings have begun, it is important to know about key mistakes to avoid. While divorces are complex regardless of the value of assets involved, errors can be especially devastating in a high-asset divorce. The following are 11 mistakes you do not want to make in a high net-worth divorce.
1. Settling Too Soon
Do not settle too soon just to get the divorce over with. You could lose out on a significant amount of money or assets.
2. Hiding Assets
Never hide assets. The consequences can be severe.
3. Skipping Mediation
Do not assume you need to turn to litigation immediately. Mediation can be beneficial in many high-asset divorce cases.
4. Allowing Your Emotions to Cloud Negotiations
Never enter a high net-worth divorce with anger or other emotions at the forefront. It could cost you.
5. Failing to Look for Hidden Assets
Just as you should never hide assets, you should also remember to take steps to look for any assets your spouse might have tried to conceal. A forensic accountant can help with this process, and forensic accountants are common in high-net-worth divorce cases.
6. Forgetting About Estate Planning
Do not forget to update your estate plan. The financial consequences could be significant, especially in a high-asset divorce.
7. Presuming Your Divorce Will Be Contentious
Do not presume that your divorce will be contentious just because there is a lot of money at stake. For many couples in high net-worth divorces, mediation and other forms of alternative dispute resolution (ADR) can be extremely effective.
8. Failing to Think About Taxes
When you are negotiating during property division, do not forget to think about taxes and taxation consequences. The taxes on real property, as well as capital gains taxes, can be significant in high-asset divorces.
9. Assuming Child Support Will Be Easy to Calculate
While Michigan law includes formulas and schedules for calculating child support, it is important to know that high-asset divorces can be more complicated when the spouses share minor children from the marriage. Often, incomes in high net-worth divorces exceed the income levels set in the schedules, and there are various kinds of child costs that must be taken into account.
10. Forgetting to Budget for Post-Divorce Life
Although you may still have a significant amount of money after a high-asset divorce, your expenses will increase. Accordingly, you need to budget for post-divorce life.
11. Failing to Hire a Divorce Lawyer With Experience Handling High Net Worth Divorces
Failing to hire an experienced Michigan divorce attorney to assist with your high-asset divorce is one of the biggest mistakes you can make. You should not try to handle a complex high net-worth divorce on your own since it could cost you significantly in the long run.
Contact a Michigan High Net Worth Divorce Attorney
Do you need assistance with a high-asset divorce in Michigan? One of our Michigan high-net-worth divorce attorneys can discuss your case with you today. Contact the Law Offices of Michael A. Robbins for more information.