Divorce isn’t easy for couples with limited resources. However, high-asset couples don’t necessarily have an easier time divorcing. If anything, they have more potential conflict because of their shared resources.
High-asset divorces are often fraught with difficulty because of financial issues and disagreements. The three problems below can happen in any divorce but are probably a bigger risk for those with higher assets.
One spouse wastes money or gives away property
No one likes to share with people whom they have negative feelings toward. People facing an imminent divorce can sometimes take steps to reduce how much their spouse receives.
Some people incur huge amounts of debt. Others spend all the money in their savings account. It’s even possible for someone to diminish the marital estate by giving away physical assets or selling them for a fraction of their value.
One spouse tries to hide assets from the other
The fairness of a divorce depends on the honesty of the people divorcing. Both spouses have to fully disclose their property to one another so that they can divide their assets fairly. People made have hidden bank accounts or might not disclose valuable assets worth thousands of dollars to deprive their spouse of a chance to claim that property in the divorce.
One spouse doesn’t see the real value in their marital assets
You know how much you paid for your house, so you probably expect to receive a share of the equity based on that established value. However, your house has likely appreciated substantially and fair market value since the purchase of the property.
The same could be true for other assets ranging from jewelry to memorabilia. Overlooking the value in certain assets or underestimating what something is worth can leave one spouse at a disadvantage during property settlement negotiations.
Identifying what risk factors might complicate your high-asset divorce can help you seek a fair resolution.