Most divorce proceedings pose challenges to the separating couple, no matter what their circumstances are. A high-asset divorce typically has at least $1,000,000 in liquid assets. Spouses with high assets, net worth or a large marital estate may face considerably more complicated property division.
Reviewing common challenges and mistakes can assist couples in moving through a high-asset divorce more smoothly.
Failing to disclose debts or assets
Some divorcing spouses might feel tempted to hide certain information during the discovery process when they should disclose a complete financial picture of all assets, income or debts. If a spouse suspects the other person is hiding information, they may hire a forensic accountant to uncover the accurate financials of the marriage.
Failing to be truthful during any stage of the divorce may lead to severe legal and financial consequences.
Feeling entitled during negotiations
Although the divorce process can understandably bring up many emotions, spouses should check for any feelings of entitlement. The primary income-earning spouse might feel like they should keep most of the property the couple accumulated during marriage since their income grew the assets during the marriage. On the other hand, the other spouse might have focused more on child-rearing and given up their career to be a full-time parent, so they might feel entitled to a large share of the marital estate to offset the years of sacrifice.
However, this entitlement will likely lead to a contentious divorce and make it harder for both parties to negotiate an equitable property division. No matter how costly or difficult the high-asset divorce seems, the way the soon-to-be ex-spouses compromise and are willing to acknowledge each other’s contributions may lessen the conflict in reaching the end of the divorce process.