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2 legal mistakes to avoid in a high-asset divorce

On Behalf of | May 20, 2024 | Firm News |

As someone who respects the rule of law, you understand the importance of staying within its bounds. This principle applies to all aspects of life, including divorce. When your marriage ends, your financial security naturally becomes a priority. There’s no shame in that. However, it’s crucial to approach this in a responsible manner, one that won’t lead to legal trouble.

If you’re aiming for a smooth divorce process, there are certain actions you should be aware of. To protect yourself and your financial future, here are three missteps you should avoid.

Hiding assets

Connecticut courts consider all property of either spouse when distributing assets in a divorce. If you hide assets, you’re not just making a minor mistake. You’re breaking the law. This could significantly impact the court’s property distribution decision and lead to severe penalties.

Therefore, it’s essential to create a complete inventory of all your individual and joint assets, including those you might consider inconsequential. Remember, forensic accountants can find hidden assets. Even seemingly small items can add up and cause serious legal trouble if hidden.

Undervaluing assets

High-asset divorces often involve complex and valuable assets. State courts consider the property value at the time of the divorce’s final decision. If you underestimate the value of assets such as businesses, real estate, investments, or retirement accounts, you may end up with an unfavorable outcome.

To avoid serious consequences, it’s crucial to get a realistic and accurate appraisal of both tangible and intangible assets, like intellectual property or potential future income from a business.

Where to turn to for legal help

Making mistakes in a process as big as ending a marriage can lead to serious legal consequences. If a Connecticut court discovers that you have hidden or undervalued assets, you could face financial sanctions and a less-than-favorable divorce outcome. Consider consulting an attorney to help with your specific situation.