Divorce is very rarely a simple process. And while divorce rates have been falling in recent years, reports reveal that the COVID-19 crisis triggered a near 21% increase in divorce agreements this past year. Divorce proceedings are a difficult and complicated process, regardless of the couple’s situation. However, one of the most common issues in a relationship usually boils down to finances, and more often than not, this carries over into the divorce.
There are a few considerations to keep in mind when filing for a divorce with high financial assets. Here are some of the things that are very important to consider:
Length of Divorce
There are complexities involved with having more assets at the time of a divorce. Time determines the cost, and while most divorces take anywhere between a few months to a year, it may take longer for individuals with a high net worth. Add the pandemic into the mix and you may be looking at an even more extended period. The process might require auditors to come in depending on the assets involved. Dividing the assets between the two parties may become more complicated down the line, so it will need experts to oversee the entire process from start to finish.
Listing Assets
Once you and your partner have finalized the agreement to get divorced, you should immediately take an inventory of your assets. Failing to do this correctly is a common mistake that many couples divorcing make, and it is a crucial step especially for those with a high net worth. Waiting until the last minute to take a count of what you own can lead to unfavorable consequences, such as more disagreements and a longer divorce period. Making this step a priority will also allow you to analyze your financial standing and set goals given the current situation. Make sure to gather all financial documents related to your assets to present to the court during the divorce.
Tax Issues and Custody Disputes
One of the most significant factors that will affect your divorce is fighting for child custody. Working out how to share a house and children is difficult enough in a divorce, but amplifying this with multiple homes, plots of land, businesses, and assets makes the matter much more complicated. Computing your taxes may change depending on your financial situation during the divorce. In fact, child tax credits can even reduce what a parent owes in taxes, and tax deductions reduce one’s taxable income for the year.
If you’re battling for child custody, you might need to talk to a professional with a background in forensic psychology. Forensic psychologists are trained in criminal justice and the inner workings of psychology that equip them to handle child custody disputes in family courts. They are especially important in high-profile cases because judges refer to them as point-persons on deciding who custody should be granted to. This is especially important for non-custodial parents who wish to see their children regularly. Understanding who can claim what in terms of eligible children, credits, and deductions in these proceedings will help minimize what is owed in taxes annually.
Managing Spending
Divorces are known to cost plenty of money. Unfortunately, some believe that the more money they spend on the divorce, the larger the settlement will be. However, the court often views this behavior negatively, particularly for those with a considerable amount of wealth. Unnecessary spending may be considered a lavish waste of assets and can seriously count against you if you aren’t careful. It’s better to regulate your spending until the divorce is finalized.
Understanding these financial considerations may give you a better chance at a better settlement and terms. For some, it may even lead to custody being granted in their favor once the divorce is finalized.
Cannon & Associates is here to support and guide you through all of your options and the Oklahoma divorce process, including developing a strategy for addressing financial considerations in a high net worth divorce. Contact Cannon & Associates to protect your rights and seek the best possible outcome in your Oklahoma high net worth divorce. Complete the CONTACT FORM ON THIS PAGE NOW or CALL at 405-657-2323 for a free confidential case evaluation.