Tips to Avoid the High-Asset Divorce Pitfalls You Didn't See Coming

Many people have heard about high-asset divorce and its pitfalls before; however, if you haven't been in one, it's easy to think of them as rare circumstances that only affect the rich and famous.

The reality, however, is that no matter how much your spouse earns or owns, high-asset divorces can be devastating because they require significant monetary assets just to finalize in court. Because of this, you want to work with a reputable law firm in Miami and follow these tips to get through your divorce efficiently and quickly — and come out on top at the end of it all.

Inventory all assets

If you know you're headed for a high-asset divorce, you must do your best to structure your finances so there are fewer surprises later on.

Some couples are hesitant about dividing up their assets because they fear that doing so could take away from the retirement funds and investments of one spouse or another. This may be true, but it's better than having more money taken from your retirement fund when a court enters a judgment following a lengthy legal battle. The legal fees associated with high asset divorces will be astronomical, so where possible, the parties to a divorce are better suited to come to an agreement regarding their asset without the need for protracted litigation or a forensic accountant.

It's also essential that both spouses know exactly how much debt each person carries before dividing up these assets.

Don't open a joint checking account

A joint checking account can make a divorce more complicated than it needs to be. Have you ever had an ATM slip? If so, you know what we're talking about!

Be sure to have your own personal bank account and maintain your personal credit score and individual assets. This will reduce hassles in divorce proceedings, and you'll be able to keep as much of your money as possible. If you share common household bills, then open one account where both parties transfer enough money on a monthly basis to pay those expenses.

Create separate credit history accounts

One of the easiest ways to protect your assets and credit rating in the event of a high-asset divorce is by creating separate credit history accounts in your name.

The new account will not only be easier for you to manage but also becomes a safety net if your ex attempts to reroute finances and drain your savings while hiding them from you. By claiming credit cards and other debt from these accounts when a divorce occurs, you can ensure that all debts are fairly divided among both parties.

Hire a Lawyer

The wealth division process can be emotionally draining and fraught with misunderstanding, which is why you should seek counsel from the Kirlew Law Firm, PLLC, and their highly respected divorce attorneys in Miami, Fl, before any decisions are made about the distribution of assets or property.

Conclusion

Divorce can be one of the most stressful life events in someone's lifetime, no matter the circumstances surrounding it. Divorce rates have been on the rise for years as people find themselves at odds with their marriage partners over finances and property settlements, among other things.

No matter how much you have, there are still pitfalls to be avoided and potential problems to be anticipated, so before you start divvying up your assets with your soon-to-be ex, take some time to consider these tips for avoiding the high-asset divorce pitfalls you didn't see coming.