Four Mistakes to Avoid in a High Net Worth Orange County Divorce
The most complex divorce cases involve high net worth couples. They tend to have a sizeable financial portfolio above $1 million or more in cash, property, and investment accounts. This scenario makes the division of assets in a high net worth divorce complicated.
From grabby exes to California statutes, several reasons may compel you to protect your business and finances proactively.
One of the best ways to accomplish this goal is to avoid some common mistakes that people make when going through a high net worth divorce. While this information is general in nature, you should address your specific questions to an Orange County divorce lawyer at Pedrick Law Group for more details.
In no particular order, here are the top 5 mistakes you should avoid when facing high net worth divorce proceedings in California:
Mistake #1: Acting on Emotional Decisions
Have you ever done something out of fear or anger only to regret it later? This situation is prevalent in California’s high net worth divorce cases. After all, your ex, with whom you likely don’t share a great relationship, might go after your hard-earned money in spite of not holding up their end of the marriage.
We get it. But you might be putting your assets in further jeopardy if you lash out. Try to remain calm and discuss any questions with your Orange County divorce lawyer.
Mistake #2: Rushing Through the Divorce
You likely want to get out of a failed marriage as soon as possible. Perhaps you have even met someone new and just want to move on in life. Unfortunately, the complexities of a high net worth divorce don’t make it as easy as you would like.
As the new, old-school saying goes, “More money, more problems.” Allow the legal process to work. Hasty decisions can later come back to bite you in unexpected ways. Take the time to weigh out your options at every decision-making point.
Mistake #3: Concealing Your Assets
Concealing your assets to avoid their inclusion during divorce is a myth that needs to go away. It doesn’t work for two reasons. First, it’s illegal. California law requires you to account for every single one of your assets. And second, it’s highly unlikely that your ex won’t bring up liquid and physical property assets you failed to mention in your financial disclosures.
A judge isn’t going to ignore that just because you titled your sports car over to your nephew for his sixteenth birthday. You can expect that it only opens up further scrutiny into your behaviors and financial records.
Mistake #4: Failing to Consider the Tax Implications
You probably considered the tax consequences and advantages of a high net worth divorce already. California law has recently changed in that the paying spouse can no longer deduct alimony from their gross income, nor does the receiving spouse have to pay taxes on it.
These changes occurred as a result of the Tax Cuts and Jobs Act enacted in December 2018. High net worth individuals will now how to factor this change into their divorce as well as their existing prenuptial agreements.
Mistake #5: Making Comparisons of Your Case to Another’s Divorce
Don’t make the mistake of self-sabotage when it comes to obtaining a high net worth divorce in Orange County. Your long-time friend or business partner may be telling you ‘how it went for their divorce’ under the same circumstances. However, any experienced Orange County divorce lawyer knows that no two cases are ever alike.
Save yourself the frustration and don’t listen to others. They may be leaving out critical details that they don’t want to share. Leverage your ability to think critically and trust that your attorney is providing the highest level of due care possible. After all, it’s their legal obligation to you.
Why You Should Consult with a High Net Worth Orange County Divorce Lawyer
The most proactive way that you can protect your interests during a high net worth divorce in Orange County is to hire a divorce lawyer that has the insight and experience to handle the complexities of this unique type of case.
There is a certain level of knowledge and understanding that they bring to the process in a way that can make a difference in the results of your divorce proceedings. Plus, their office handles the court administration process, responds to opposing party communications, and actively works to protect your rights at hearings at Orange County Superior Court.
You don’t have to worry about or watch your assets unfairly slip away. Start protecting them now by contacting our office of Orange County divorce lawyers at Pedrick Law Group. You can receive your free case evaluation by calling 818-528-4936 or sending us a message via our contact form.