Going through a divorce is emotionally stressful for almost all couples, even if they both agree a divorce is the best option. When there are many assets involved, emotions can run even deeper as each party is inclined to fight over which assets they believe they are entitled to.
The first step to keeping your assets protected during the divorce process is to ensure you have a full inventory of all assets at play.
With your attorney, compile a list of all retirement and investment accounts, banking and credit card accounts, real estate holdings, and any other significant assets. You will also need to establish the value of each asset, which may require the help of a third-party financial advisor.
As we mentioned, you will need to determine if the assets were acquired prior to or during your marriage. This will help your attorney better establish how to handle the division of assets. Keep in mind that disputes over property can slow down the divorce process (and end up costing more in legal fees), so it is crucial that parties find common ground and agree on as many factors of the division as possible. Having the documents to support your position can be the most effective way to settle the dispute, presuming the other side remains reasonable.
Once you have a strong sense of your financial situation, meet with a financial advisor or tax professional to discuss the tax implications of your divorce and settlement. While your divorce attorney will be your go-to resource during the asset division process, your financial advisor is a key player as well. He or she will be responsible for ensuring that your savings are protected during the divorce and that tax fallout is minimal.
Couples going through a high-income divorce should understand the benefits of mediation and of coming to their own settlement agreement without court intervention. Mediation is encouraged for all divorcing couples, but particularly for those with high assets.
Meeting with a third party to resolve conflicts in a high asset divorce may help the parties come to an agreement faster and more easily. These processes can also reduce the time it takes to complete a divorce and the overall costs of the process. For a high asset divorce, the costs may not be a factor, but there is still generally a goal of protecting those assets as much as possible. Couples who are unable to reach asset agreements on their own are usually required to attend mediation, per Georgia law. This requirement helps reduce back-ups in the court system and provides the opportunity for a more amicable divorce process.
Arbitration is similar to mediation in that the couple is sitting down with a neutral third party to address the different issues involved in their divorce. But there is a critical difference in that an arbitrator makes a binding decision, whereas a mediator helps the couple to come to an agreement on their own. The overall process is comparable, but the way a decision is reached may affect your assets and should be considered carefully. Particularly in a high asset divorce, it may be wise to allow a third party to make a binding decision because of the confidentiality of the process. If the matters are left to a judge in your divorce case, hearings are required to be held in a public forum.
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Welcome into a world of financial intricacies and emotional intersections with our latest episode of "Family Matters." Join us as we sit down with Melanie Prehodka, a distinguished Partner and Canton Divorce & Family Law Attorney at Stearns-Montgomery & Proctor, to unravel the complexities of high-asset divorce within Georgia's collaborative…
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