Most people work towards acquiring as many assets as possible throughout their life. However, during divorce, you may wish the opposite were true. High-asset divorce is much more complicated than an amicable or uncontested divorce.
SmartAsset.com says high-asset divorce usually deals with at least $1 million worth of marital property. If you have several highly valued assets and worry about your impending divorce, take some time to read the article below. It will detail several factors you might expect to encounter.
Being wealthy costs more
This might seem obvious, but you must come to terms with the fact that high-asset divorce will likely cost you more. You probably will need multiple valuations if you own several real estate properties, businesses, artwork, or other assets. You might need to hire an accountant for each category of asset you own.
Putting off financial planning will cost even more
Preparing for property division must start before a judge divides your property. You need to get all your documents ready in the lead-up to the divorce. Once you separate from your spouse, the process needs to start immediately. Playing catch-up is a good way to miss an important detail, costing you more money in the long run.
Taxes also need consideration
Your tax situation will change after getting a divorce. You may want to keep certain assets but remember that you must pay taxes. Depending on your financial situation after a divorce, transferring certain assets to your ex-spouse may be best.
There is no perfect way to handle a divorce, especially when significant wealth comes into play. However, understanding the costs beforehand will help you deal with the process better financially and emotionally.
