Crucial Things People Forget When Planning a High Net-Worth Divorce
Going through a divorce will always have its difficulties. There are a lot of hard decisions to be made and compromises to be struck before the Judge signs off on that Divorce Finalization order. Like many other things in life, how happy you are at the end of the divorce process will depend on how well you prepare and start off in the divorce process. Adequate preparation is often what separates the champion of a race from the “also-rans” who finish without distinction. The bad news is that divorce often contains several issues that many do not foresee or think to plan for. The good news is that this means that if you plan ahead and engage with an experienced divorce attorney, you can identify potential pitfalls in advance and craft a plan to deal with them.
Below, we generally discuss several items you should be aware of ahead of any divorce – but particularly ahead of a high net-worth divorce. Contact the esteemed legal team at the law office of Bradley S. Sandler to learn more and discuss your own case.
- Beware Sudden Spending Sprees
Divorce will almost always require some division of assets. Some individuals may feel insecure or unsure of their future financial standing. This means some individuals could begin spending money while they know they have access to it. In high net-worth divorce cases this spending spree may occur even more frequently, particularly if one partner generates significantly more wealth than the other.
Some common (misguided) rationales behind why this type of spending might occur include:
- A belief that spending during the course of the marriage and shortly before separation will give the appearance that the marital lifestyle is higher than it really is – increasing the support obligation of a breadwinning partner.
- Attempts to divert or hide assets ahead of a divorce and asset division.
- Thoughts that the other partner will engage in deceptive practices so acts to retain a greater share of the assets are really just “leveling the playing field.”
- Child support and Alimony Calculations May Differ
The courts duty and utmost obligation is to ensure that support orders serve the best interests of the child. If utilizing the state’s established formula for support would result in an unfair support order then the courts will re-examine in order to craft a truly fair order.
- Plan for Attorney’s Fees and other Professional Costs
Bear in mind that on top of dividing your assets, you need to anticipate the actual cost of divorce. High net-worth divorces are often more complicated and take longer to finalize than the average divorce. The assets to be divided might be more vast and broad and include things like business interests and the value of reputation, etc. There is a lot to analyze and manage as high net-worth spouses seek to finalize a divorce. Depending on the specifics of the case, a high net-worth divorce could require other professional fees in addition to attorney’s fees. This could include business appraisers, forensic accountants, etc. Even in swift, amicable divorce cases, you should expect court fees. Depending on the circumstances, one spouse may be ordered to pay some or all of their spouse’s attorney’s fees.
- Remember: “Final” is not the same as “Permanent”
It is important to remember that a “final” divorce order could be subject to change in the future. Divorce judgments can be reopened and reexamined for good cause. Be aware that this possibility exists. The details and circumstances surrounding this possibility can be discussed with experienced legal counsel.
Contact the Law Office of Bradley S. Sandler
High net-worth divorces are complex matters that require knowledgeable, precise handling. Our elite legal team and high net-worth divorce counsel can help you analyze the details of your own divorce case and plan your next steps. Contact our office today to discuss your case.
Sources
https://stylecaster.com/entertainment/celebrity-news/1190124/tom-brady-net-worth/