According to the Centers for Disease Control and Prevention, the divorce rate in Florida in 2021 was at 3.4%. As couples navigate the end of their marriage, they have many considerations to make.
Having higher wealth can complicate the process. High-asset divorces require careful planning and consideration.
Gather financial documents
Collect all financial records, including tax returns, bank statements, investment accounts, property deeds and retirement account statements. Having a complete financial picture is important as you move forward.
Create an inventory
Compile a detailed inventory of your marital assets, including real estate, vehicles, jewelry, art and any other valuable items. Document their value as accurately as possible.
Understand your marital debts
Alongside assets, identify and understand your marital debts, such as mortgages, loans and credit card balances.
Consider the tax implications
Be aware of the tax consequences associated with different asset divisions. Certain assets may have significant tax implications that you will need to factor into your decisions.
Protect your business interests
If you own a business, take steps to protect your interests. This may include valuing the business, negotiating a buyout or establishing a clear plan for the business’s future.
Do not hide assets
Concealing assets or attempting to undervalue them is not only unethical but also illegal. Courts take a dim view of such actions and may impose severe penalties.
Avoid rash decisions
Emotions can run high during a divorce, but making impulsive decisions without considering the long-term consequences can be detrimental. Take the time to weigh your options carefully.
Do not engage in retaliatory actions
Seeking revenge or attempting to harm your spouse’s financial interests may backfire and lead to unfavorable outcomes for both parties.
Do not ignore prenuptial agreements
If you have a prenuptial agreement in place, do not dismiss its provisions. Prenuptial agreements are legally binding, and they can significantly impact the division of assets.
In a high asset divorce you must approach the process with a level head. Doing so can help you to more effectively secure your financial future.