While a divorce can have a major financial impact on both parties involved, a high net worth divorce can be particularly difficult to maneuver. These divorces usually involve the negotiation, litigation, valuation and division of significant assets such as business interests, restricted stock options, large retirement accounts and investments, executive compensation, and other high-value community property.
Since Illinois is an equitable division state, all marital assets acquired during the marriage are potentially divisible under Illinois law. This means they are divided fairly, but not necessarily equally, adding to the level of complexity, so it is essential that high net worth divorces are handled with the upmost care and attention to detail and investigatory care.
Common Mistakes to Avoid in a High Net Worth Divorce
Failure to take the proper steps when engaging in a high net worth divorce can lead to irreparable mistakes with lifelong outcomes. The following tips should be remembered to ensure that you are left in the best possible financial condition after your high net worth divorce.
Hiring a Divorce Attorney That is Inexperienced in High-Net Worth Divorce Cases
High net worth divorces require the skilled counsel of a high-asset divorce attorney. A divorce attorney who does not routinely represent high net worth clients is likely unfamiliar with the particular nuances involved in such cases. The top-rated attorneys at Davis Friedman have extensive experience handling complex high net worth divorces and will use both care and precision to effectively manage your case.
Failing to Pursue Asset Discovery
Undisclosed assets, whether intentionally unlisted or not, can prevent you from receiving a settlement or reaching terms in an agreement that you rightfully deserve. Our experienced attorneys will not only analyze and review the complex information with you, but we have a wide network of highly qualified experts such as forensic accountants, business valuation specialists, and appraisers to assist with the detailed analysis that may be necessary in your high net worth divorce matter.
Attempting to Hide or Conceal Assets
Either side attempting to hide or conceal assets is never advisable as a paper trail exists in essentially every single financial transaction. When these hidden or concealed assets are then discovered, you can face sanctions from the court including extensive monetary fines, and you will lose credibility with your counsel and in the courtroom. The impact this can have on your short-term and long-term situation is simply not worth the unnecessary risk.
Neglecting the Tax Ramifications Involved in a High Net Worth Divorce
One often overlooked aspect of a high net worth divorce is the tax implications involved with any settlement or agreement. From changes in filing status and child-related exemptions, to capital gains taxes and tax penalties, there are multiple potential sources of tax consequences resulting from the dissolution of a high net worth marriage. Because tax considerations are an important element of a high net worth divorce, your skilled attorneys at Davis Friedman may additionally refer you to a tax specialist to assist with your situation.
Contact Davis Friedman, LLP for the Best High Net Worth Divorce Representation
If you are considering divorce or simply have questions regarding a high net worth divorce, please contact our law firm. When you choose to work with one of the knowledgeable family law attorneys at Davis Friedman, LLP, you are receiving a skilled, strong and passionate advocate for your case. As the oldest family law firm in Chicago, we have extensive experience providing trusted representation for our clients undergoing high net worth divorces and are deeply familiar with the complexities involved in such cases.
To learn more about a high net worth divorce and to schedule an initial consultation, contact us online or call us at 312-782-2220.
