Ever heard of an easy divorce? I bet not—some complications often arise during the process. It worsens if the divorce involves high net worth people. This is because a lot of property and finances are involved. It becomes tedious, resource-intensive, and even dramatic.
If you are navigating a high-end divorce, here are some of the complications you are likely to handle.
- Hiding of Assets
During a divorce, partners fill in forms showing all the assets they possess. Some partners can be devious and decide to hide some of their properties to cheat their spouses out of fair finance sharing. In most cases, the assets are transferred to a third party or funds transferred to different accounts. Stay alert and if such cases arise, arm yourself with evidence and discuss it with your attorney. Considering that this is a punishable offense, such a partner will end up losing credibility or even facing charges.
- International Complications
Most people who have high net worth tend to have businesses outside the state or abroad, not to mention that most of them live international lifestyles. They may have two or more citizenships. This gives them access to multiple jurisdictions. Disagreement can ensure on which authority is most suitable to handle the divorce. In cases where a partner has companies abroad, you may need to engage the services of a financial forensic team to help fish out the company’s assets that may be hidden elsewhere.
- Tax Implication
Most people find tax topics annoying. They do not understand that significant tax implications are bound to arise during property distribution. For example, if one partner owns a business, and they are supposed to transfer an asset such as a car or land to their spouse, certain tax liabilities will be triggered. The spouse receiving the asset should understand that they will be taxed, thus raising their expenses.
- Business Ownership
It is not abnormal to find that couples with high net worth jointly owning a family business. They tend to invest together during the marriage duration. Once they divorce, such companies become a Centre of conflict. The company’s value and future have to be determined to enable a fair distribution. Partners may continue co-owning the company. If their differences cannot allow, one partner may have to sell their shares to exit the scene altogether.
No doubt navigating a high net worth divorce can be tiresome, and if not well handled be so messy. A lot of money makes emotions run high and creates high tension. They can also be time and resource-intensive. Do not rush into this divorce, take your time, analyze everything thoroughly, and never be driven by your emotions. Another mistake you should never make is comparing your divorce case to others. Yes, something might have ended well for someone, but that does not guarantee that it will also work for you. Stay calm, understand the above complications, and prepare well. Above all, make your divorce attorney your best friend.