Mistakes to Avoid in Your High Asset Divorce

 Posted on November 07,2018 in High Asset Divorce

There is a lot at stake for any couple going through a divorce. This is especially true for those who own significant or diverse assets, so if you want to ensure that your own divorce goes as smoothly as possible, you should strongly consider contacting a Leander high asset divorce attorney who can ensure that your filings and disclosures are all made properly and on time.

Hiding Assets

One of the worst mistakes that a person can make when going through a high asset divorce is to try and hide assets from one’s spouse. Not only could this type of conduct lead to an unfair property settlement, but if a court discovers that one of the parties was dishonest when disclosing their financial holdings and debts, it could hold that individual in contempt or require that he or she turn over a larger portion of assets to the other party.

Failing to Fully Investigate Assets

Failing to disclose assets to a spouse is not always done intentionally. In fact, many divorcing couples accidentally fail to disclose assets, properties, and debts because they did not hire an expert to investigate their finances. Taking this step is extremely important, especially for spouses who were not primary earners or who have less knowledge about the family’s financial holdings, as it ensures that any settlement agreements will be fair and equitable. Maintaining an inventory of all of one’s assets is also a good idea and can give financial advisors a better understanding of where certain assets are held, as well as their approximate value.

Ignoring Tax Consequences

Drastic changes in finances, such as dissolving a marriage, can bring about unexpected changes in a family’s tax situation. Depending on how property is divided and whether one party is ordered to pay spousal or child support, divorcing couples could end up paying significantly more come tax season. Furthermore, the tax code is always changing, so it is important for divorcing parties to speak with an expert about the passage of any new tax laws. For instance, as a result of the passage of the Tax Cuts and Jobs Act late last year, those who obtain divorces after the end of this year will not be permitted to deduct alimony payments from their taxable income. Similarly, recipients of spousal maintenance are no longer required to pay taxes on those payments.

Failing to Consider all of Your Options

No two divorces are the same, so just because a friend was forced to litigate his or her divorce in court does not mean that you will have to do the same. Instead, those who have decided to dissolve their marriages should keep an open mind and consider all of their options, which could include mediation, arbitration, or even collaborative divorce, all of which can save couples both time and money, while also shielding any children from the more emotional aspects of divorce.

Seek Help from a Reliable Leander High Asset Divorce Lawyer

To begin working on your case with an experienced Leander high asset divorce attorney, please call 512-610-6199 or complete one of our brief online contact forms and a member of our legal team will contact you as soon as possible.

Sources:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm

https://money.usnews.com/money/personal-finance/articles/2013/08/19/why-a-collaborative-divorce-makes-financial-sense