Divorce can be messy and overwhelming, regardless of the relationship. The process can be even more challenging if the couple has a high amount of assets. If you are going through a divorce, you should know how high-asset divorces differ from typical property division in California.

At Benefield Faulk Law – Family Law Trial Advocates P.C., we have over 15 years of experience serving clients in all matters of family law, including divorce. We take a compassionate yet aggressive approach to ensure that our clients’ interests are protected.

California Divorce Laws Overview

California’s divorce rate is significantly lower than the national rate: 5.9 per 1,000 people, compared to 6.9 per 1,000 people, according to a Census report. Even at this relatively low rate, divorced couples want to protect their interests and ensure they receive a fair bargain.

California is a no-fault divorce state, which means no wrongdoing has to be proven to seek a divorce. However, there is a 6-month waiting period to finalize the process, and at least one party must have lived in California for 6 months and in their respective county for 3 months. Filing for divorce is the simple part; however, making decisions about the following key issues is where the help of a lawyer may be invaluable:

Navigating these issues can be contentious, whether the divorce was contentious or noncontentious, or whether it is a no-fault divorce or one party blames the other because of infidelity, financial difficulties, etc. In the end, the judge has the final say regarding how property is divided, so it is important to ensure you have a compelling case.

High-Asset Divorce Laws vs. Typical Property Division Laws

Of all the issues couples must sort out during a divorce, property division can be one of the most contentious. This is especially true for a state like California, where the median household income is $96,334. Further, in wealthy cities such as Beverly Hills, where the median income is over $120,000, couples are even more interested in protecting their assets.

California is a communal property or 50/50 state, meaning that both property and debt are split equally between the parties upon divorce. Even if only one person’s name is on a debt account, it is still considered communal if it was incurred during the marriage. In this case, property is not just houses or physical assets, but also anything that holds value, such as bank accounts, retirement plans, pensions, cars, furniture, and investments.

Only community property, or assets and property obtained within the marriage, must be split, however. Separate property, or property obtained before the marriage or after the divorce, is not divided, nor are gifts or inheritance obtained during the marriage.

A high-asset divorce follows the same 50/50 laws as a typical divorce, but it can be more complex due to the sheer number and variety of assets. Some specific factors that make a high-asset divorce more complex are:

  • Requiring forensic analysts to determine what is separate or community property.
  • Requiring other professionals, such as forensic accountants, financial analysts, business advisors, and appraisers, to determine the actual value of certain property.
  • The type of property that may be included, such as royalties, large investments, businesses, and luxury items.
  • Complex tax implications because of businesses, retirement accounts, and investments.
  • The need for full transparency to uncover potential hidden assets.
  • A lengthier and more expensive divorce process is used to ensure that property is divided equally and valued accurately.

In short, although property in both a typical and high-asset divorce is divided equally, a high-asset divorce is more complex and may require more than a legal professional to ensure no one is taken advantage of.

When to Hire a Property Division Lawyer

Whether you have a high-asset divorce or a typical property division, you may want to hire a California property division attorney to make the process go more smoothly. A capable, strategic, and aggressive lawyer can help you ensure your hard-earned assets are protected and that you follow the divorce process accurately.

FAQs

What Is a High Net Worth Divorce in California?

A high net worth divorce in California is a divorce in which the couple’s combined income or assets are substantial. It is a complex type of divorce because it involves more than just a couple’s money; it may also involve investments, businesses, royalties, retirement accounts, and luxury items such as expensive art, cars, furniture, and jewelry.

Why Is Moving Out the Biggest Mistake in a Divorce?

There are many reasons why moving out is considered the biggest mistake in a divorce. As it pertains to child custody, moving out may signal instability, as it is more favorable for children to live in their family home. Regarding assets and property, moving out may increase your financial burden, as you may have to split both your marital home and your new home if you are still married when you move out.

What Assets Are Untouchable in Divorce?

While all community property, or property obtained within the marriage, is subject to division, separate property is not. Separate property is property obtained before the marriage or after the date of separation. Separate property may also include gifts or inheritance, even if acquired during the marriage. It is important to be clear about the actual date of separation to ensure it is not subject to change.

How Are Assets Divided in Divorce in California?

In California, assets and property are divided 50/50, or equally, during a divorce. This can differ from other states where property is divided fairly. California is a community property state, meaning that all property acquired and debts incurred during the marriage are subject to equal division between the parties.

Hire Benefield Faulk Law – Family Law Trial Advocates P.C., Today

If you are going through a divorce, it is important to ensure your rights and property are protected. Whether you are a millionaire with complex, valuable assets or a working person making a meager income, you deserve experienced representation. At Benefield Faulk Law – Family Law Trial Advocates P.C., we put your interests first. Contact us today for a pain-free consultation.