People get married all the time, not realizing that divorce can wreak havoc on their finances. The higher the income and value of assets involved, the more complex and time-consuming the separation process is. Though your focus is on ending your marriage, dividing assets and who gets custody of the kids, it is necessary to consider the lingering consequences a high-value divorce can have on the rest of your life.
As someone with a high net worth, you should exercise caution, discretion and common sense while sorting things out. No matter how much you trust or still care for your spouse, you should not take anything at face value. You have worked hard to amass your wealth and should prepare to do what is necessary to protect your interests and maintain financial and emotional stability in your post-divorce life.
1. Learn what you are legally entitled to
With the stakes being so high, you cannot afford to make assumptions about what you believe you should receive in the settlement. Now is a time you may feel uncertain about your future and the thought of having to start over and becoming the sole provider and head of your own household. To make the post-divorce transition easier, learn your rights, so your soon-to-be ex-spouse does not have an unfair advantage.
2. Be honest about your new life
Divorce almost always brings about changes in income. Do not wait on the settlement to assess your needs. Failure to consider them during the negotiations process can make it harder for you to move on afterward. There is also the likelihood that you will receive an unfavorable settlement. Try not to let your emotions run wild and cloud your judgment.
3. Do not overlook retirement accounts
You or your spouse may not be happy to learn that retirement accounts are subject to division. Many people end up fighting over their pensions and retirement accounts in divorce. There are ways you both can agree on terms without having to share your retirement funds with each other. For example, you can offer up other marital property in exchange for your spouse's portion of those funds.