Because California is a community property state, almost everything you acquire during the marriage is equally owned by you and your spouse. This includes your investments, business and gains on any existing assets you had before the marriage. Continue reading to learn about the common mistakes people make during a high-asset divorce.
Hiding assets
Getting caught trying to hide assets will get you into legal trouble. Even if you secretly stored away assets during the marriage, you need to disclose this during a divorce. Items you receive as a gift and your inheritance are separate property unless you mingle it with marital property. You shouldn’t use your separate property to help pay for marital expenses like home renovations, vacations or bills.
Failing to try negotiating
Ideally, you should write a prenup because it can help you protect your business and assets if the marriage goes wrong. Hope isn’t lost if you didn’t get a prenup. You could try creating a postnuptial agreement with your spouse as well to avoid a 50/50 division of property.
Going straight to court without trying mediation
A court battle is usually more expensive and time-consuming than mediation. As long as your spouse is willing to try mediation, you may be able to reach a settlement agreement that both of you are happy with. A mediator oversees negotiations to help keep the peace and offer workable solutions to problems. You aren’t obligated to sign any agreements after mediation if you’re unable to find a property division and co-parenting plan that works for you.
Rushing negotiations
If you want to get the high-asset divorce over as quickly as possible, you’re at risk of rushing negotiations. Remember to be patient as you gather all of the important information you need about your total community assets and debts before negotiating how to divide the property. If you try resolving it too soon, you may agree to something you later disagree with once more information is out.
Financial mistakes during divorce could cost you a lot of money. Take it one step at a time, and do everything in line with the law.