Divorces include a wide range of personal aspects that can create an emotional and tense environment. With high net-worth divorces especially, things often become complicated because there are a variety of valuable assets and funds involved. If you’re going through a high net-worth divorce in California, it’s important to educate yourself on the different laws and legal proceedings you’ll have to deal with during your divorce.
Here is some essential information on high net-worth divorces in California as well as some tips on what mistakes not to make when you’re going through one.
What Is a High Net Worth Divorce?
A high net-worth divorce occurs when a couple decides to end their marriage while having a substantial number of valuable community assets. Because California is a community property state, all assets that were collected during a marriage are considered to be equally owned and “communal” between spouses. This means that all assets have to be divided according to community property law, where both spouses should receive a fair share of their marital estate.
To be considered a high net-worth divorce in California, a separating couple must have a net worth of at least $1 million or more combined. A high net-worth divorce addresses all of the same aspects of a regular divorce, such as property division, spousal support, and child custody, but it also implements extra care when dealing with valuable assets during the process.
What Not to Do When You’re Going Through a High Net Divorce
Going through a divorce is never easy, especially when there are conflicts throughout it. If you’re involved in a high net-worth divorce in California, it’s critical to avoid these common mistakes:
Do Not Hide Assets or Falsify Information
Because all marital assets have to be split equally, one important step of every California divorce is identifying and valuing all your communal property. In most cases, especially those of a high net-worth divorce, both spouses will have their assets appraised separately so that they can ensure their spouse isn’t trying to hide anything. If you attempt to hide assets or falsify information regarding your marital property, you can be held legally accountable and even charged with perjury.
Do Not Go Into Your Divorce Without an Experienced Lawyer
Many individuals believe that they can save money by going through their divorce without a lawyer. However, working with an experienced divorce attorney who is familiar with high net-worth cases is critical to ensure you receive all of the assets you deserve in this separation. A Pasadena high asset divorce lawyer can also work to help you build a strong divorce strategy and represent your best interests throughout your case.
Do Not Make Decisions Based on Current Emotions
Divorces often become emotionally charged when spouses disagree. Whether you can’t come to a mutual agreement on child custody or you’re fighting over the family home, it’s important to never make any decisions based on your current feelings. This is because many of these decisions are not only permanent, but they can affect you and your family for the rest of your life. It’s crucial that you take the time to talk to your attorney on each matter and work together to take action properly.
Avoid Excess Spending
Unless you and your spouse make a formal agreement stating that you’re both allowed to take funds from a joint account, withdrawing any type of funds from a joint account that is considered to be a community asset can get you in trouble. It’s essential that you avoid using any community assets as well as any excess spending. Excess spending can not only look bad in a high net-worth divorce, but it can also put you in a poor financial position when your divorce is finalized.
Q: How Is Property Split in a California Divorce?
According to community property guidelines, each spouse is entitled to half of the communal property that was collected throughout their marriage. This means that all marital assets, including homes, vehicles, and any businesses owned, must be identified and valued so that they can be split as fairly as possible during the divorce process.
Q: What Is a “No-Fault” Divorce?
California follows a “no-fault” divorce policy. If one or both spouses decide that they want to end their marriage, “no-fault” means there’s no requirement to prove the other spouse committed a wrong in order for it to be approved. This allows couples that believe they cannot reconcile to be able to legally divorce.
Q: What Kinds of Assets Are Involved in High Net-Worth Divorces?
The assets involved in a high net-worth divorce are mostly the same as those in the average divorce, but their value is just much higher. For example, common assets in divorces include the family home, other real estate property, cars, shared bank accounts, retirement plans, stocks, and more. In a high net-worth divorce, the separating couple has a net worth of at least $1 million, meaning these assets are most likely incredibly valuable and need to be handled with care.
Q: What Is the 10-Year Rule in California Divorce?
In California, marriages that last over ten years are classified as “long duration” marriages. If a couple divorces after a long marriage and one spouse earns a higher income than the other, spousal support can be awarded to the lesser-earning spouse to help them take care of themselves after the divorce.
High Net-Worth Divorce Assistance in Pasadena
No matter what kind of divorce you may be going through here in California, it’s crucial that you find an attorney who can properly help you. At Khalaf Law Group, our team has served clients through difficult divorces and family law cases for over a decade. We know that high net-worth divorces are often complicated, which is why we offer legal services that can properly represent you in your Pasadena divorce.
If you’re involved in a high net-worth divorce in Pasadena, don’t hesitate to see how the Khalaf Law Group can assist you and your case today. To learn more about our high net-worth divorce services or the other practice areas we work in, contact us for more information.