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James D. Madden & Aruna P. Rodrigo, Family Law Attorneys

Potential Mistakes to Look Out For in a High Net Worth Divorce 12-08-2016

Potential Mistakes to Look Out For in a High Net Worth Divorce

The divorce process can be incredibly stressful and draining experience, both emotionally and financially, for everyone involved. In high net worth divorces, that second part can become even more stressful as both you and your soon to be ex-spouse fight about who keeps what and how much of it is really theirs. As this topic becomes increasingly relevant with the recent high-profile divorces of Amber Heard and Johnny Depp (combined estimated net worth of more than $400 million) as well as Angeline Jolie and Brad Pitt (combined estimated net worth of about $400 million), it’s important to consider the elements that go into this process, especially if you expect to find yourself in a similar position in a the near future, in order to avoid a costly mistake. Some of the most dangerous ones to look out for include:

  • Giving in to Your Emotions: No matter how good you think it might feel to go after your soon to be ex during the divorce proceedings, it is incredibly unlikely to result in any meaningful success for you. In fact, many times instigating a contentious divorce can lead to an extended legal battle that will only serve to drain your wallet more than is necessary. In addition, it may put your family and loved ones in the uncomfortable position of needing to choose sides – no matter how convinced you are that everyone is with you, some may end up surprising you, and that’s a risk you shouldn’t have to take.
  • Ignoring Taxes: High net worth divorces often include the transfer of large sums of money, and that can have a dramatic effect on your taxes. It’s important to take the time to look through your finances in order to calculate the change with your attorney so you aren’t blindsided come next tax season.
  • Trying to Hide Your Assets: No matter how valuable you may consider your asset to be, attempting to lie about it or hide it away can result in serious penalties, ranging from major fines to jail time. Even with these deterrents in place, over 30 percent of Americans admitted to financially deceiving their partner according to the National Endowment for Financial Education.
  • Agreeing to Terms Just to Move the Process Along: No matter your motivation for looking to complete the divorce process as soon as possible, whether you’re hoping to start the next phase of your life with a new flame or if you just want to get as far away from your soon to be ex-spouse as quickly as you can, agreeing to terms without going over them with your attorney first will inevitably lead to problems for you down the road like unfavorably divided assets or massive alimony payments.
  • Hiring the Wrong Attorney: An inexperienced or unqualified attorney could seriously damage your future, especially financially, by unnecessarily pursuing aggressive tactics that extend the legal battle, by lacking the knowledge to secure you the terms you deserve, etc. Whatever their problem is, hiring someone who can’t provide you with the legal counsel you require could put you in a seriously disadvantageous and completely avoidable position.

At James D. Madden & Aruna P. Rodrigo, Family Law Attorneys, our an Bernardino high net worth divorce lawyers have spent their careers representing clients and providing them the experienced and knowledgeable representation they need to secure the agreement they deserve. If you are considering filing for divorce, of if you’re looking for a different attorney, contact us today to discuss your options by giving us a call at (909) 344-5704 or by filling out our online form to request a free assessment of your case today.

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