The stakes in a high-asset divorce can be high, which underscores the need for financial due diligence. Otherwise, you risk losing more than you ever imagined – whether you’re the breadwinner or not.
Think of financial due diligence as a deep dive into your money matters during a divorce. Here’s why this is important if your marriage is broken down and divorce is looming.
Dig up hidden wealth
Some spouses play dirty in the lead-up to and during a divorce. They might stash cash in offshore accounts, fake companies or even under a friend’s name. As such, you shouldn’t just trust your spouse’s word. Check the facts yourself. Follow the money, uncover hidden assets and ensure that everything is on the table. This sets the foundation for a fair settlement.
Accurately value your assets
High-asset divorces often involve complex assets, from real estate and businesses to art collections and stock options. If they’re undervalued, you could lose a lot. For instance, is that tech startup with half a million or ten times that? Are your luxury properties undervalued? Bringing in professional appraisers or financial experts can help take out the guesswork and ensure you’re splitting assets based on qualified appraisals.
Understand the tax implications
Overlooking the tax consequences of dividing certain assets can leave you with unexpected financial obligations. Selling a home, transferring retirement accounts or dividing stock options can trigger taxes that could eat into your settlement. Remember, it’s not just about what you get. It’s about what you keep after taxes.
Secure your future
Financial due diligence isn’t just about the present. It’s about safeguarding your future. Alimony, child support and property division can all have long-term consequences, and you can avoid nasty surprises by staying ahead of everything. Reaching out for qualified legal guidance to protect your interests can help ensure a fair settlement and protect the life you’ve worked so hard to build.