As you look to the future and make decisions pertaining to your pending divorce, ensure you are aware of these three factors in high-asset divorces in Georgia. With the aid of a qualified family law attorney who works with high-asset divorces, you can overcome a difficult time and build for your financial future.

1. Look out for hidden assets

Hidden assets can be one common aspect of a high net worth divorce. This factor pertains mainly to the lower income earner or less financially well-off of the two spouses; however, either spouse could potentially hide assets. Such assets are important to uncover because all assets must be an open and transparent part of the divorce process so that they can be divided as required by law. Sometimes, an attorney will bring a forensic accountant on to your divorce team to investigate and uncover hidden sources of income.

2. Understand property division in Georgia

Each state has its own state laws governing how to divide property in a divorce. In Georgia, most assets and debts acquired during the marriage are considered marital property. Georgia law requires equitable property division. This does not necessarily mean that each partner gets half of the assets. There are many factors that come into play when decisions are being made about property and asset division. Your attorney can help you navigate this process to make sure you get a fair deal and keep any assets that are rightfully yours.

3. Remember conflict can escalate costs

When high-net-worth people face divorce, finances often take center stage. If a couple is not divorcing amicably, conflict over assets and future finances can lead to long, drawn-out legal battles that can quickly drain bank accounts. Ask your attorney about ways you can reduce conflict to help you avoid the situation damaging your asset portfolio.

If you are facing the end of your marriage, be careful how you approach divorce, especially when it comes to property division. When there are significant assets to consider, take your time. Here are five common mistakes to avoid.

Shouldering guilt

If you are experiencing bouts of guilt because the divorce was your idea, you might feel tempted to give up too much. You might waive your right to alimony, for example, or give some of your separate assets to your spouse. Giving your soon-to-be ex more than you should will probably not assuage your guilt, and the results could leave you feeling bitter.

Being too agreeable

Whether you have totally fallen out of love with your spouse or fallen head over heels in love with someone else, you may want to get out of your marriage at any cost. Agreeing to a lopsided division of assets is a bad idea. Always keep your financial future in mind.

Failing to investigate

Even if you have been married for decades and think you know your spouse, consider that hidden assets are a contentious part of more divorces than you think. Do not accept what your spouse tells you. Invest the money necessary to investigate and make sure he or she has brought all the marital assets to the table.

Ignoring the tax picture

You may think the subject of taxes is boring, but when you divorce, you may pay taxes on everything from the alimony you receive to the assets you win in the settlement. During your marriage, someone else may have dealt with the tax picture, but that is about to become clearer when you are out on your own.

Going it alone

Property division in a high-asset divorce is usually very complex. Reach out for legal support and advice. Remember that it is unwise to hurry just to get an ill-fated marriage behind you. Avoiding mistakes will help you enter a new phase in your life happier, more confident and better prepared financially.

While going to trial on TV is almost always good for ratings, in real life and family law, it often makes more sense to negotiate terms of a divorce and agree to a settlement — including the division of assets and debt — than it does to fight it out in a Fulton County courtroom. 

One of the best ways to negotiate a settlement of property division in a Georgia divorce is to enter mediation. Typically more cost-effective and less contentious than litigation, mediation can help resolve often difficult disputes in matters such as child custody, child support, spousal support (alimony) and marital property division.

We recently shared some basics about the mediation process in a blog post.

Another common way of avoiding court is to negotiate and resolve matters in discussions and meetings between family law attorneys and clients. Together they create written settlement agreement which is then submitted to the court for approval.

In some situations, even a skilled family law attorney is unable to get the other side to agree to reasonable terms, however. In those cases, litigation becomes inevitable. Unfortunately, going to court in a divorce can be costly and time-consuming. Perhaps worst of all, the terms of the divorce are left up to the court rather than the divorcing spouses.

To discuss your legal options, priorities and best course of action, contact The Siemon Law Firm.

Although the goal of getting through a divorce with minimal conflict and time requirement is understandable, there is too much at risk financially to ignore the financial aspects of divorce. In a time when Americans’ retirement prospects are more unstable than they have been in years, it is more critical than ever to take a strategic approach in divorce. You need to maximize the financial in divorce to protect your future.

Unstable Retirement Prospects

A recent article in Investment News explores the declining potential for financial independence in retirement for a growing number of Americans. Citing a recent report from the U.S. Government Accountability Office, the Investment News article states that “[t]he three pillars of the American retirement system – Social Security, workplace retirement plans and individual savings – will not provide adequate retirement security for a growing number of people…”

There are numerous reasons for this collapse in future financial security, including a instability in the Social Security system, “which is projected to be unable to pay full benefits by 2035,” and the Pension Benefit Guarantee Corp. facing “substantial liabilities,” among other reasons.

What Does This Mean for Divorcing Couples?

Assuming the Investment News report is accurate, there appears to be a good chance that many young people will be much less able to enjoy a financially secure retirement than in years past.

If anything, individuals facing divorce need to be intentional and strategic when planning divorce strategies. The approach of ignoring financial matters in order to speed through the divorce process is likely not the best approach. There is too much at stake. You need to make sure you get the best financial outcome possible in your divorce.

Protecting Your Financial Future

When it comes to division of assets, spousal support and child support, you want to maximize your potential. Whether you are the paying spouse or the spouse who will receive support, getting the best outcome possible could be the difference between living comfortable in your retirement years or not.

An experienced divorced and family law attorney can talk you the process, create an intelligent strategy and fight to obtain you the best financial outcome possible in your divorce.

However, these accounts are significantly more important than many people understand. In many ways they form the foundational bedrock for long-term financial success, and it is difficult for people to recover what is lost when they let these accounts go in divorce.

Why Don’t People Take These Accounts as Seriously as They Should?

According to an article from the Ledger, millennials consider their youth as an advantage in this regard. They often feel like these accounts are only going to be realized a long way in the future, so they think they have plenty of time to make up that value.

But according to financial adviser Rosemary Frank, “That’s a big mistake. They need to value those retirement assets more in their minds. The best thing you’ve got on your side with retirement assets is time.”

Protect Your Interests

This article illustrates well how important it is to work with a knowledgeable attorney when facing divorce at any age. There are many factors that people will not think of if they haven’t been through the process previously.

When going through the division of assets negotiations in your divorce, make sure you take time beforehand to get not only accurate values but also your own value of the various assets involved. And when looking at 401k and other retirement or investment assets, consider the long-term value, including interest.

Although you are young and you do have time to recover financially from a divorce, the money you and your spouse have earned can be a strong platform for building your portfolio long-term, a platform that should not be abandoned lightly.

There are a few important tips for how to recover financially after a divorce. According to a recent U.S. News article, one of the most important things you can do is rebalance your financial approach wisely.

There are many aspects of your portfolio that will need to be re-assessed to protect your future.

• Changing assets: Of course, after property division in a divorce, your portfolio will be different. Almost no one comes away from a divorce without losing something financially, so it is important to re-assess your situation.
• Changing beneficiaries: Any estate planning documents will need to be altered, as well, after a divorce. It is likely you no longer want to include your ex-spouse in your will, and that is just one example. There are many other ways that your estate plan will need to change after a divorce.
• Changing goals: It is possible that your entire outlook on your finances will change after a divorce. Perhaps you want to start a new career or make some new investments.

These are just a few of the things you should consider after a divorce. Make sure you talk with an attorney who has experience with high-asset divorce and can help you protect your financial interests.

In previous posts we have discussed older couples ending their long-term marriages. These kinds of splits have taken on their own term, “gray divorce.” While neither Sharon nor Ozzy is looking gray (they still rock their black rock star duds), they do fit into that classification. This newly-announced divorce reflects the trend of gray divorce.

The New York Times reports that the rate of gray divorces doubled between 1990 and 2011. For someone like Sharon Osbourne, making the bold decision to file for divorce might not be as scary as it is to a more average person. Sure, Ozzy is the famous rock musician, but Sharon has built a career in her own right, currently as a TV show host. 

Overall, the Osbournes are wealthier than the average Georgia couple. They likely have fewer worries regarding their retirement savings and how they can afford to retire with the lifestyle that they both desire in their golden years. Still, they have surely accumulated many assets throughout the course of their marriage. While neither party in the Osbourne divorce is likely worried about their overall finances post-split, the matter of property division (real estate, for example), can get heated in any divorce. 

If you are nearing retirement and thinking about divorce, don’t let fear of the future close you off from discussing your legal options. A lawyer experienced with gray divorces, as well as a financial planner, can address your concerns and help you make a more educated decision about your future. Maybe you are like Sharon Osbourne and just can’t live as you are anymore.

However, these documents can be very complicated and people can and do make mistakes and oversights when filling these out. In some cases, these are unintentional; in other cases, they are purposeful because someone is trying to shield assets from division. If you believe your ex may be hiding assets, there are other places to look besides the financial affidavit that can help you avoid costly courtroom hearings and get a fair settlement.

As noted in this article in the Huffington Post, many of the ways you can discover undisclosed or hidden assets is by reviewing paperwork and financial records. This can seem tedious and confusing, but it can be helpful to start by looking through:

• Old tax returns
• Pay stubs
• Bank account statements
• Credit card bills
• Utility bills
• Investment records

After looking through these things, you can start to get a better idea of how much money is coming in and where and how it is going out. If things don’t add up, there may be reason to believe there is a secret bank account, undisclosed properties or unreported income, all of which should be causes for concern.

This can all seem overwhelming and very complicated, particularly when you are also dealing with the intense emotional toll of a divorce. Further, it can be stressful knowing that there may be significant amounts of money at stake.

Rather than try to figure this all out on your own, you can discuss your options with an attorney who has experience in high-asset divorces. There are legal and financial resources available that can help to ensure all assets are accounted for in a divorce so that any settlement that is reached is fair.

While divorces with high assets at stake are often complicated, Georgia couples should note that it is possible to get divorced without completely thrashing one another. Of course, it takes a degree of cooperation when possible as well as individual representation by experienced divorce attorneys. However, even when couples cannot work together peacefully, there are options to consider.

The marital home, in particular, is often the subject of discord. Both spouses have likely become attached to the property, not only for its financial worth but for its sentimental value. Selling the property, paying off the mortgage and dividing any proceeds is one of the easiest ways to handle the matter, but it can be difficult for one or both spouses to let go.

Another option is for one spouse to keep the home and refinance the mortgage, which may be a challenge if the spouse who wants the home does not have a great deal of wealth. Yet another option is ask the lender if it is possible for one spouse to assume the mortgage. Still another option involves coming to some sort of agreement about who remains in the home while leaving the mortgage as it is, but this can be risky.

The marital home is just one of the issues in a high asset divorce. Couples in Georgia will benefit from seeking professional advice from an attorney with prior experience in high net worth divorces.

Source: Bankrate.com, “Breaking up the mortgage after divorce,” Polyana da Costa, accessed Jan. 27, 2016

Many of the battles, such as they are, are not physical encounters, of course. Tough talk in the courtroom or at the conference table is often that — just talk. Some Georgia lawmakers, however, want to take a more proactive approach to try to head off some instances of domestic violence when it comes to divorce.

One state senator has pre-filed a bill that would make it considerably more difficult for a person in the midst of divorce proceedings to purchase a firearm. The bill would require the permission of the judge overseeing the divorce case in order to allow the purchase.

Legal experts say that if the bill was to be signed into law, which is far from certain, it might not withstand constitutional challenges. As it is now, anyone purchasing a gun already has to go through a federal background check, which would still be in effect if the bill were to be enacted.

While the idea behind the bill might be admirable, put into practice, it might fall flat. Regardless, working with a principled family law attorney with your best interests in mind is often the best way to navigate your divorce.

Source: WABE-FM, “Georgia Bill Would Restrict Gun Buying During Divorce,” Michell Eloy, Dec. 29, 2015