Divorcing couples in California who have accumulated significant wealth should prepare for a process that includes significant challenges. While they will need to solve the same divorce issues that most couples face, the process itself can be much more complex. However, they can avoid many common errors seen in high-asset divorces by entering the process with the right attitude and a commitment to solve issues rather than fight everything out.
The right divorce process can save you time, money and emotional distress
A common error in a high-asset divorce is to choose litigation, fighting the case in open court. The outcome of litigation is determined by a family judge. This process can become lengthy, expensive and highly emotional, leaving both spouses drained mentally, emotionally and physically. An option to help them avoid this is to choose an alternative conflict resolution method, such as mediation, where spouses work with the divorce teams and a neutral third-party mediator to reach a divorce settlement that both find fair and balanced.
Enter negotiations in good faith and focus on resolving the issues
The way spouses approach divorce can affect the outcome of the process, leading to errors that can have a long-term financial impact. However, the right attitude and commitment to solving issues can help you avoid the following errors:
- Dragging out the divorce due to attitudes of entitlement about what you deserve
- Hiding assets from your spouse, resulting in financial and legal repercussions when they are found
- Misunderstanding how alimony and child support are calculated for high-asset individuals
- Squandering funds set aside for your children during the fighting in divorce by not prioritizing estate planning
- Misunderstanding the tax implications of the financial decisions made during divorce
If you find yourself dealing with a high-asset divorce, focus on what you want for your future, educate yourself about your finances and be flexible about the changes you will need to make. This can help you commit to resolving the issues amicably and more promptly.