Answers to Your Questions
Most people don't understand the complex financial implications and legal factors associated with high-asset divorce in California. To make well-informed decisions about your future, it's vital to have answers to common questions related to high-asset divorce proceedings. In this blog, we aim to answer frequently asked questions regarding asset division during such cases so you can proceed with knowledge and confidence.
How Is a High-Asset Divorce Different From Other Divorce Cases in the State?
While there is no set “rule” in Southern California, a high-asset divorce case is typically one in which marital assets are valued at or in excess of $3-5 million. These divorces require a more thorough approach than typical divorce cases due to the complex and extensive nature of divvying up larger pools of assets. Property division can include evaluating stock options, real estate holdings, art collections, business interests, and numerous other assets with financial implications.
Additionally, high-asset divorces involve an increased need for expertise from legal professionals and valuation experts specializing in specific categories of goods. Ultimately, navigating through a high-asset divorce case requires specialized attention and intense guidance to ensure that all parties get their fair share of assets.
What Assets Are Often Involved in a California High-Asset Divorce?
In a divorce involving high assets in California, it is common for assets such as real estate, investment assets, business assets, retirement funds, and other financial accounts to be divided. The division of assets is based on the specific facts and circumstances of the case and any prenuptial or post-marital agreements in place. These asset divisions can be complex as they involve splitting the dollar value between spouses, considering taxes from such transactions, and determining who gets a particular item. Ultimately, it is essential to have an attorney who can advise on how these assets should be distributed for everyone's benefit.
How Does Real Estate Work in High-Asset Divorce?
During a high-asset divorce case, any jointly owned assets must be addressed. If real estate is present, the courts usually strive to divide and award the assets equitably between parties. The court may look at factors like the property's current market value and who has been paying the mortgage and taxes, among other considerations, when determining how to move forward. Ultimately, the courts may devise plans for one party to buy out their spouse's interest in a property or for both parties to sell and liquidate any equity derived from their jointly owned real estate assets.
What About Business or Professional Assets in a High-Asset Divorce?
For Californians going through high-asset divorces, certain assets may be involved that are unique to a business or professional endeavors. These assets could include investments made in a family-owned business or professional degrees. Assessments as to the value of these types of assets must be conducted by a financial expert, such as a Certified Public Accountant (CPA).
An experienced attorney can provide insight into how ownership, control, and potential tax implications related to family businesses should be managed and favorably negotiated in a high-asset divorce. Moreover, during divorce, retirement accounts and exclusive use of training, licenses, and other business-related items may need special consideration and division between the parties.