Avoid These Common Mistakes in a High-Asset Divorce

Avoid These Common Mistakes in a High-Asset Divorce

Divorce is hard. Even when it is the correct decision and both partners agree that it is time to split, there are still legal, financial, and logistical challenges. For high-net-worth couples, ending a marriage is especially difficult. Too many people make mistakes that cause them serious problems. In this article, our Rolling Meadows high-asset divorce attorney highlights five common mistakes that you should avoid in a high-net-worth divorce in Illinois. 

• Not Understanding the Basics of Property Division (Equitable Distribution)

One of the most common mistakes in a high-asset divorce is not understanding the basics of property division. Under Illinois law (750 ILCS 5/503(d)), all of a couple’s marital property and assets will be divided in an “equitable” manner. Equitable often but not always means a 50/50 split. In contrast, separate property (non-marital property) is not subject to property division. 

• Failing to Disclose Property and Assets

Another common mistake in a high-asset divorce is failing to disclose all property and assets. Illinois law is clear: Each spouse is required to fully and accurately disclose all assets and property that they own, including any hidden assets or income. Failing to do so can result in serious sanctions. An Illinois court may even award one spouse a greater share of the property because of the other party’s failure to disclose assets. 

• Paying No Attention to the Tax Consequences

A high-asset divorce can have significant tax consequences, and it is important to be aware of these consequences and to plan accordingly. For example, dividing certain assets, such as a retirement account or a family business, can have tax implications that need to be considered. A top Illinois divorce lawyer will be able to help you navigate the tax implications. 

• Focusing Only on the Money

A high-asset divorce can be a very emotional and stressful time, and it is important to focus on the bigger picture. Many people make the mistake of focusing only on money and not considering other important factors, such as the well-being of their children or the impact of the divorce on their future. Non-material aspects of a divorce are important, even in high-net-worth divorce cases. 

• Waiting Too Long to Seek Professional Legal Representation

Waiting too long to seek legal representation can result in a less favorable outcome and can also make the process more difficult and stressful. It is important to seek legal representation as soon as possible to ensure the best possible outcome for you and your family. A proactive approach is especially essential in a high-net-worth divorce. 

Contact Our Illinois High Asset Divorce Lawyer Today

At SAM LAW OFFICE LLC, our Illinois high-asset divorce attorneys are standing by, ready to help you find the best solution. If you have any specific questions or concerns about your rights or your options, we are here as a legal resource. Contact us today to arrange your fully confidential case evaluation. With an office in Rolling Meadows, we serve communities throughout the region.