There are several factors that make a high-asset divorce in Michigan different from other divorces. A high-asset divorce is generally considered to be a divorce involving more than $1 million in assets, although in today’s financial climate, that number may be getting higher.
One of the reasons high-asset divorce is different is that higher assets mean higher stakes. There are usually several different types of assets involved, such as real estate, businesses, investments or trusts, all of which have high values. This can make you feel you have more to lose.
If you are going through a high-asset divorce, here are some mistakes to avoid.
Take your time
Divorce is often a long process and while you might want nothing more than to get it over with and move on with your life, do not accept a settlement offer just because you want to speed up the divorce process.
Spouses who settle too quickly can end up paying too much or receiving too little. The extra time it takes to negotiate a settlement is usually worth it in the long run.
Do not hide assets
Be honest. The thought of losing valuable assets can be difficult and you might be tempted to hide it. However, there are various methods available to uncover hidden assets, so you risk getting caught.
Additionally, Michigan law states marital property should be divided equally. Spouses who hide assets are usually sanctioned by a court by being awarded less than their fair share of assets.
Keep the process amicable
Divorce is usually stressful whether you knew it was coming or were blindsided by it.
Divorces involving arguments and conflict usually end up costing more money. You can end up depleting marital funds that you could be splitting.
Do not forget to consider the tax consequences of any divorce decisions. You may have to pay taxes on any assets you are awarded. Any potential owed taxes should be factored into your divorce settlement.