How to Deal with a High Net Worth Divorce?
Dealing with assets during a divorce, especially in high-net-worth situations, can be both confusing and challenging. Hi, I’m Katherine Miller. I’ve been a divorce attorney in New York City and Westchester County for over 30 years. One of my goals is to help people who are considering divorce understand what they need to know before they start the process.
One way I do this is through my podcast, Divorce Dialogues. I recently interviewed Lily Soff, a financial planner and certified divorce financial planner, about the top five mistakes high-net-worth individuals make during divorce. One key topic we covered was understanding the relationship between cash flow, assets, taxes, and risk.
Lily discussed what she calls “Sudden Money Syndrome.” This occurs when someone who hasn’t previously managed a significant amount of money suddenly gains control of a large sum. What constitutes “a lot” can be subjective—what seems like a lot to one person might not seem the same to another. People with Sudden Money Syndrome might either avoid investing due to fear of risk or dive into high-risk investments, thinking they can handle the volatility.
There’s a balanced approach, akin to the Goldilocks principle: finding what’s just right for you. What works for one person might not be suitable for another.