Divorce proceedings can be complicated, no matter how much money is involved. However, high net-worth divorces in Florida tend to cost more and take longer to resolve than those where fewer assets are involved. Here is what you need to know if you’re about to split a household with $1 million-plus in assets.
The complications of high net-worth divorce
The benchmark for high net-worth divorce used to be $1 million, giving it the same designation as for high net-worth investors. However, with many single-family homes now worth $500,000 and more, many middle-class couples easily have $1 million in assets to resolve. Theoretically, divorce should be straightforward as couples attempt to divide assets equitably. That’s usually not the case, as divorces tend to get emotional, especially when high stakes are involved.
The following considerations can complicate high net-worth divorce:
- The breadth of the law, with couples having many categories of assets
- Difficulty in applying the law because of the number of assets
- Assets split across multiple jurisdictions
- Mounting acrimony between the divorcing parties as conflicts continue to arise
Managing high net-worth divorce
One of the most important considerations is to remember to consider your household debt. Remember, couples must divide the debt acquired during their marriage. Anticipate the tax consequence of how you split everything, and don’t do anything to get back at your estranged spouse because it will only cost more time and money.
Always attempt negotiation first
Although every aspect of divorce, including child custody issues, can become contentious, property division is usually the most challenging. Florida laws require the full disclosure of income and assets in contested divorces. Always try negotiations through various means instead of going to court to resolve your differences, as this route generally costs less and takes less time.
Working with mediators and certified divorce financial analysts (CDFA) may cost more now, but they help you save money in the long run. These professionals can assess your situation without emotions getting in the way and present viable options. With such information in hand, you are more likely to get the fairest possible divorce settlement.