Every family will have unique concerns that make their divorce proceedings different than those of others. Even someone else in a marriage that might seem similar on paper due to income, family size and the ages of the couple divorcing will likely have a very different divorce outcome when compared with yours.
Especially for households with higher total levels of assets and higher income, divorce can be relatively difficult to predict. There are financial concerns that those with smaller marital estates may not have to worry about as much. If you find yourself considering a potential high-asset divorce, you need to consider these four financial concerns when planning.
High income and more assets might mean more debt
When the Michigan courts divide your household assets, they also have to split up your debts. Research has repeatedly found that those with higher incomes also tend to carry higher levels of debt. Dividing the debt will absolutely influence how the courts divide the rest of your property.
Divorce doesn’t always come at a good time for investments and retirement funds
Your total household value probably fluctuates a lot depending on the current stock market situation. Ideally, when you transfer or liquidate investment assets or invested retirement funds, you do so when the market is strong to maximize what you receive for those accounts.
Divorce happens because of personal reasons, which might mean that the markets could be bad when you divorce, impacting the value of anything you need to liquidate or withdraw during the divorce.
Substantial amounts of property can make it easy to miss something
The more property you’ve accumulated throughout the marriage, the easier it is to overlook some of those assets when creating an inventory of your property and negotiating property division terms. It’s important for the overall fairness of your divorce that you make sure you track down all marital property, even those assets that you have no interest in keeping yourself.
More marital property means more of a reason to lie
Some divorces have extra complications because one of the parties involved doesn’t want to be honest or transparent with the other. They might try to hide property or even find a way to diminish the total value of the marital estate. The larger your total estate, the greater the motive for someone to hide assets from their spouse and the courts in the hope of keeping them outright during the divorce.
Partnering with a lawyer familiar with the unique needs of high asset families during divorce can help you avoid these and other potential pitfalls in your divorce proceedings.