4 Common Mistakes Made in High Net Worth Divorces
After English singer-songwriter Adele divorced her husband in 2019 without a prenuptial agreement in place, many wondered what would happen to her amassed wealth. Ultimately, the divorce settlement was worth 140 million English pounds, which is more than 175 million dollars in the United States. Some people have stated that the fact that Adele did not have a prenup in place was a mistake. However, there are other mistakes many people make when going through a high net worth divorce. If you are about to go through a divorce, and you or your spouse have a high net worth, you will want to understand how you can protect yourself financially. Here are some common mistakes that you will want to avoid:
1. Hurrying the Divorce Process
No one wants to go through a lengthy divorce, but high net worth divorces are rarely over quickly. Multiple professionals often have to get involved, including attorneys, financial advisors, forensic accountants and others. These professionals can provide valuable insight into how to resolve the legal and financial issues involved, and they can help divorcing spouses reach a fair settlement. If you try to rush the divorce process, you may end up making hasty decisions that will cost you in the long run, and you may regret these mistakes for years to come.
2. Letting Emotions Take Over
Feelings of guilt, anger, regret and resentment are common in any divorce. These emotions are all completely normal, but you will want to do your best to put them aside and to ensure that they do not influence the decisions you make. Failure to do so can lead to mistakes that you may regret in the future.
For example, if your spouse had an affair, your feelings of hurt and betrayal may cause you to become extremely stubborn about disputes that need to be resolved. However, refusing to compromise, especially on issues involving terms your ex-spouse is entitled to, such as reasonable parenting time with your children, will likely make the divorce process take even longer. If, on the other hand, you were the one that had an affair, your guilt may lead you to give up your rights to an equitable share of your marital property. During your divorce, you should remember to allow yourself to feel emotions, but avoid making decisions based on them.
3. Trying to Hide Assets
When a divorce involves a high net worth, a spouse may try to hide certain assets to avoid having to divide them with the other party. For example, a spouse may place funds in an offshore account or transfer them to a friend in an attempt to hide them from the court. This is a huge mistake. Attempting to conceal assets will cause you to lose credibility with the court, and this may affect every other aspect of your divorce. In most cases, hidden assets are discovered, and attempting to conceal property is not worth the penalties you could face for doing so.
4. Not Working with an Experienced Palatine Divorce Attorney
All divorce cases have the potential to become complex, but high net worth divorces often involve multiple types of complicated legal and financial issues. In these cases, you need to work with a skilled Arlington Heights high net worth divorce lawyer who has the necessary experience to address your needs. Attorney Nicholas W. Richardson has extensive experience helping clients through high net worth divorce cases, and he can help you, too. Call our office today at 847.873.6741 to arrange a free consultation.