If you are about to go through a divorce, you undoubtedly want the process to be over as quickly as possible. However, there are many factors to consider and some you would be wise not to rush. A whole new chapter is about to open in your life, and you do not want careless mistakes to jeopardize your future financial security.
Here are four mistakes to avoid, especially if you are facing a high-asset divorce.
1. Agreeing to anything
You may have ended your marriage on a bitter note. Perhaps you caught your spouse having an extramarital affair, and you are desperate to get the divorce over with. Your soon-to-be ex will put forth terms you may not like, but you think that agreeing to them will move the divorce along. Do not fall into this trap. Do not rush and do not agree to anything that will cause you financial problems down the road.
2. Allowing guilt to take over
Perhaps you feel guilty for initiating the divorce. Guilt may cause you to give up too much in the property division phase of the proceedings. For example, you may waive your right to alimony or give up a piece of property you owned prior to the marriage and that you are entitled to keep. Do not make rash decisions. Think of your divorce as dissolving a business and keep your emotions in check.
3. Being too lax about taxes
Remember that there will be taxes to pay on certain assets. Also, be sure you understand the tax consequences of the new law affecting alimony payments. If you do not understand the law, your attorney can clarify it for you.
4. Failing to initiate an investigation
The more marital assets there are, the more chance there is that not everything is out on the table. If your spouse handled most of the financial affairs during your marriage, it would be wise to engage the services of professionals such as a business appraiser or forensic accountant to find out whether other assets or income exist.