Common Mistakes Made In High Net Worth Divorces

High net worth couples face a special array of risks and complexities when entering divorce proceedings. With valuable assets and substantial sums of money at stake, it is common for such divorces to become rife with ill-will. As such, the individuals involved are liable to make rash decisions that impact them negatively in the long run.

Below is a list of mistakes high net worth couples frequently make when negotiating a divorce — mistakes, it should be said, that are easily avoided:

  • Hiding assets — Many individuals endeavor to protect their assets by transferring them to a third party (such as a business partner, a child from a previous marriage, or an overseas liaison). Yet such behavior is routinely exposed during the discovery process and serves only to undermine the spouse's credibility in court.
  • Improperly accounting for tax considerations — Tax considerations are integral in divorces between spouses of substantial wealth. Individuals frequently agree to substandard alimony payments and other concerns because they fail to calculate the taxes for which they will be liable.
  • Allowing emotions to take precedence — Guilt and anger are hard to avoid during the divorce process. Yet they ought not to be allowed to color the financial agreements spouses make when they separate. This is, of course, easier said than done. Spouses who initiate divorce are prone to giving up more assets than they need to, as a means of assuaging their guilt. Likewise, angry individuals often approach divorce with the intent of battling to the end, which can make the process incredibly expensive as a result of lawyers' fees.
  • Signing agreements without an attorney — Given the complexity of both the assets and the emotions involved in divorce proceedings, it is important to have an objective partner at your side who can guide you through the process pragmatically. Individuals are quick to sign agreements simply to put an end to a painful process. While divorce proceedings should not drag on indefinitely, retaining an attorney is essential to ensuring your interests are preserved.

Helping You Avoid Pitfalls

For more than 35 years, I have helped high net worth couples navigate divorce proceedings, guiding them around the most common legal traps. Serving Rockville and throughout Maryland and Washington, D.C., I aim for efficient, favorable resolution.

To learn more about how I might assist, call my office at 301-284-8790, or set up an appointment online.