Many divorces are a challenging and emotional time for those involved, as there are overwhelming feelings of grief, anger, and guilt. However, during high net worth divorces, there is also the additional anxiety of worrying about your finances. If you are going through a divorce in which you or your spouse are considered high net worth individuals, there are unique considerations you must keep in mind. Keep reading to learn how Los Angeles high net worth divorce attorneys can help you navigate this process with ease.
What Constitutes High Net Worth Divorces?
Generally, any time a couple has a combined net worth of over one million dollars, it warrants a high net worth divorce.
Like a regular divorce, you and your spouse must work out the standard considerations, such as child support, alimony, and the division of your assets. However, this becomes more difficult as those with a higher net worth will often have more assets that must be taken into consideration when dividing property.
What Are Common Concerns I Should Be Aware Of?
One of the most essential things you should keep in mind when going through a divorce is understanding how California divides a couple’s marital property. The state follows the community property method of dividing assets, meaning all marital property is subject to a 50/50 split between spouses, regardless of how much each spouse has contributed to the marriage.
If one or both spouses own a business, they must undergo a business valuation to determine the worth of the company. This allows each spouse to receive marital assets of equal value. However, if they are both involved in the business, one spouse may buy out the other’s share in the company if they decide not to continue as co-owners and partners after the divorce.
Another essential consideration to keep in mind is that some spouses may hide their assets. When spouses have a considerable amount of wealth, it is not uncommon for one partner to conceal certain assets in the hopes their spouse will not notice. This commonly occurs by transferring funds to a trusted family member and claiming they are repaying an owed debt. However, this can unfairly skew the division of assets between spouses.
There are also tax issues impacting those going through a high net worth divorce. For example, if they file together during the divorce for financial advantages, it can cause problems. Filing together will make both spouses liable for interest and penalties that one spouse incurs.
As you can see, there are many unique considerations those during high net worth divorces must consider. If this reflects your situation, it’s imperative to enlist the assistance of an attorney with experience handling these types of divorces. Contact the Zitser Family Law Group to learn how our legal team can help you navigate this confusing process.