When a couple in Los Angeles divorces, they may find that their disagreements carry on throughout the divorce process. After all, each party does not want to get short-changed in the final settlement. The stakes are raised in a high net worth divorce, where a significant amount of money is involved.
First, couples in a high net worth divorce should not simply agree to whatever their ex wants, just to get the whole divorce process over with as quickly as possible. Similarly, one spouse may feel guilty about their failed marriage and because of that may agree to give their ex more than their ex is due. However, agreeing to a settlement that is not in one's favor can affect a person for the rest of his or her life. So, it is important for people to take their time and assess the situation objectively when working through their divorce legal issues.
Sometimes, in an effort to have the upper hand during property division, a spouse will try to hide assets. They may transfer property to a third person. However, doing so is an act of fraud. If a spouse is caught trying to hide assets it will affect their credibility in the eyes of the court, and they could wind up losing more than they would have had they been upfront with all of their assets in the first place. It may help for the lesser-moneyed spouse to have a professional investigate whether there is property or other sources of income that they may not know about.
Also, when a couple is divorcing they may need to execute a financial affidavit and provide each other with a financial inventory of their assets. This document should be accurate and as current as possible. While this can be a lengthy process, if it is not properly completed then a spouse may be left with debts that should not have been theirs. Conversely, an incomplete or out-of-date financial inventory could mean that a spouse will have relinquished property or a right to spousal support that they may have otherwise been entitled to.
These are only some considerations to make in a high net worth divorce. However, no matter how much money or property a couple has when they divorce, it is important to keep a cool head. This can help ensure a fair and appropriate result is reached.
Source: CNN iReport, "Top 10 Mistakes in High Net Worth Divorces," Joey Battah, Jan. 10, 2014
