A common early mistake is for couples to try settling terms amicably before involving professionals. The spouse with less financial information often makes critical concessions without understanding their rights or the true value of the assets, leading to inequitable outcomes.
In some states, divorce courts separate "enterprise goodwill" (a marital asset) from "personal goodwill" (non-marital). This means a business's divisible value could be far less than its market sale price, a crucial and counterintuitive distinction for entrepreneurs.
Dividing complex assets like retirement accounts or business interests can create long-term financial entanglements with an ex-spouse. A better strategy can be bartering these future assets for simpler, immediate ones like cash to achieve a clean financial break.
A person going through a divorce is often in a state of trauma, unable to focus on long-term finances. Effective advisors act as triage specialists, first solving immediate problems like housing and cash flow before delving into complex wealth management strategies.