Common Mistakes Made During a High-Net Worth Divorce

 Posted on May 21,2019 in Divorce

When Amazon founder and “world’s richest man” Jeff Bezos announced his divorce from his wife MacKenzie Bezos, the media called it the most expensive divorce in history. Jeff Bezos’s estimated net worth is an astounding $131 billion. When wealthy individuals or business owners get divorced there are many additional factors which must be considered. Because there is so much at stake, it is crucial that divorcing high-net worth individuals seek counsel from a knowledgeable divorce attorney with experience handling high asset or high net worth divorces. If you own a business or have complex investments and a high net worth, make sure to avoid these common mistakes during divorce.

Rushing the Divorce Process

When a marriage ends because of an affair or other hurtful scenario, the couple often wants the divorce to be finalized as soon as possible. Even couples who have not had a dramatic end to the marriage may want to get the divorce over with quickly so that they can move on with their lives. Unfortunately, high-net worth divorces are rarely speedy. Business valuations or asset valuations could take months or even longer to complete. In addition to your attorney, you may require help from a financial advisor, forensic accountant, or other professional in order to sort out your finances during a high net worth divorce. When divorcing couples rush, they can make hasty decisions which end up costing much more in the long run. While it is understandable that you want your divorce to reach a resolution as quickly as possible, rushing or skipping important steps in the divorce process can lead to more trouble than it is worth.

Letting Emotions Dictate Your Divorce Settlement

If you are like many divorcing individuals, you may have feelings of guilt, regret, anger, or resentment. While these feelings are completely normal, it is critical that divorcing couples make decisions based on fact instead of emotions. When emotions drive divorce decisions, mistakes can be made which lead to more regret in the future. For example, the spouse who wanted the divorce often feels tremendous guilt for leaving his or her partner. In an attempt to absolve himself or herself of this guilt, he or she may agree to an exceedingly unfair division of property or spousal support arrangement. Because the consequences of the decisions made during divorce can last years or even a lifetime, it is crucial to make decisions based on facts and advice from divorce and financial professionals.

Attempting to Hide Assets

Individuals in a high net worth divorce sometimes try to hide assets so that they will not be divided as part of the marital estate. Spouses may do this by keeping assets in an offshore account, transferring assets to a friend, or otherwise not disclosing all of their property. When divorcing spouses hide resources or property in this way, they can lose all creditability in court and dramatically lengthen the time investment and expense the divorce will cost them. Most hidden assets are eventually uncovered, so hiding assets is simply not worth it.

Contact a Naperville Divorce Attorney

If you are a high-net worth individual getting divorced, speak with a DuPage County family law attorney from the Pesce Law Group, P.C. for help. Call 630-352-2240 to schedule a free consultation today.

Sources:

https://www.washingtonpost.com/technology/2019/04/04/jeff-bezos-divorce-settlement-retains-percent-amazon-stock-he-held-with-his-now-ex-wife-mackenzie/

https://www.forbes.com/sites/heatherlocus/2019/01/10/what-jeff-and-mackenzie-bezos-and-all-high-net-worth-couples-need-to-do-to-avoid-a-messy-divorce/

https://www.forbes.com/sites/russalanprince/2014/06/09/three-of-the-biggest-mistakes-the-wealthy-make-when-divorcing/