Divorce is difficult for everyone. Coming to the conclusion that you and your spouse are better off apart than together is emotional. This doesn’t change whether you are wealthy, or not. The difference that wealth makes comes when it comes to dividing assets and settling financial agreements. Because of these additional complications, it’s best to get some advice for your high net-worth divorce.
Missteps in High Net-Worth Divorces
Here are some damaging missteps you don’t want to take if you are facing a high net-worth divorce:
Day in Court Assumption
Don’t assume your “Day in Court” will turn out the way you expected. According to divorce financial analyst and CEO of Source Financial Advisors, Michelle M. Smith, “There are options besides court that have a higher probability of getting you what you want and getting you what you want privately. Having your net-worth statement and personal dramas splashed across ‘Page Six’ is not what most clients set forth as goal number one in their divorce.”
“Advice” from Friends and Family
Friends and family always want what’s best for you. So while they’re giving advice, know that it might not always be the best. According to managing partner at Flynn Family Office, Richard J. Flynn, “In our experience working with wealthy divorcees, there are many times they are not inclined to share a lot of information with friends and family, who usually don’t understand the legal and financial implications involved. The goal of the wealthy going through one of the largest personal financial transactions in their lives is not only to surround themselves with emotional support from well meaning family and friends but to also obtain solid and specific divorce-related advice from the best available talent in the field.”
Look at the Whole Financial Picture
Working with a divorce financial specialist can be really helpful. “While financial divorce specialists complement and can never replace divorce lawyers, their role is to – from the start of the process to after the divorce is finalized – ensure the financial well-being of their clients,” says Smith. “For example, they’re often extremely effective in providing the supporting evidence for settlements.”
Source: Forbes, Three Of The Biggest Mistakes The Wealthy Make When Divorcing, June 9, 2014
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