Forbes recently ran an article about getting the most money from a divorce. We can break it down into 3 key areas to think about:
Get a valuation expert to assess your true financial worth. This is very critical around things like investments, pre-IPO stocks, etc. We agree on this point since emotions can cloud our thinking when it comes to what non-monetary items are worth. And it can help to have an unbiased opinion on the matter. However this is not necessary for a lot of couples whose finances are straight-forward and out in the open.
Life insurance should be seen as another asset which plays into the financial worth of individuals. This point may not apply to a lot of people out there, though to some this could be a very high dollar amount. If you or your spouse have a large life insurance policy this could be up for contention during a divorce.
Lifestyle. This is critical in cases where one person makes significantly more than the other. We have all heard of divorces where a famous actor or musician had to give millions to a spouse who never worked. Definitely something everyone, no matter how right or poor, getting a divorce needs to think about. And need to consider how long spousal payments might last. In divorce cases items like this can be negotiated well before getting to a court-room.
Overall it was a good article and made some helpful points. And right at the beginning the author states “It’s not uncommon for the parties in a divorce to act in irrational ways.” We have seen a lot of cases where people do things they think is in their own best interest, which actually ends up costing them dearly in the long-run. For example in one case the other side was hiding the fact that they owned property in another state. They had the property for years and never told their spouse. Since it was thousands of miles away they probably figured we would never have figured it out. Unfortunately for them we were able to uncover this and it ended up much worse for them. If they had been honest and disclosed it from the beginning things would have gone much better. But since they hid it anything they said after that was met with skepticism from us and the judge.
Articles like this are very interesting and even thought it’s written for “high worth” individuals there is something in here for those who aren’t as well. Everyone going through a divorce should be concerned about their finances and the impact a divorce could have.
For anyone getting a divorce it is important to determine if you need an attorney. And if you do, the sooner you can start discussing your case with one usually the better off you are.
You can find the article on Forbes.com here: http://www.forbes.com/sites/russalanprince/2014/12/01/getting-the-most-from-a-high-dollar-divorce/