Divorces can cost an arm and a leg for many people, especially if they are divorces mired in conflict. Paying for lawyers, legal fees, and other expenses can make a divorce hard on your heart and your wallet, and if you are in the middle of a high net worth divorce, then you need to take extra care to protect your income.
No matter how you got your high net worth, in a divorce setting every asset you have and every dollar you make is going to be looked at, and it can be worth focusing on how money works in a high asset divorce. That way you can work to keep your money safe, and also be prepared for any tricks that might get pulled by your spouse’s lawyers.
Money Needs To Be Documented
For starters, any high asset divorce attorney will tell you that you need to document your money and your assets. Taking stock of your finances is going to be one of the best things you can do, because the court is already going to do that before they make any decisions around your money.
But look at all the financial details of your assets, and collect all your forms and documentation (such as W-2 tax forms, 1099 forms, pay stubs, and receipts). Make sure to have them all before the proceedings begin, and ideally they should be in the hands of your lawyer as quickly as possible.
Equity And The Division Of Property Might Be Complex
If you and your spouse have been paying for a joint property, such as the family home, then that can be a complicated item to handle during your divorce. Often, many couples simply have one spouse buy out the other’s interest in the home, and then the home is refinanced in that person’s name.
In other cases, the home is sold before the divorce is finalized, and if the divorce happens before the home is sold, then the court decides what happens. But the division of property earned during the marriage can be complicated, so having a good divorce attorney on your side can be very helpful.
In a high asset divorce, money plays a very large role for everyone involved, and understanding how your financial assets will be connected to the divorce proceedings can help you keep more of what you have worked so hard to earn.
