If a high-net-worth couple wishes to get a divorce in California, it is important that they recognize the implications and complexities that taking this legal action may have. Divorces where the couple has a net worth in the millions still involve California’s community property laws, where both spouses are entitled to half of the shared estate (and debts). Each spouse should protect themselves during the property division process by contacting a divorce lawyer in Los Angeles as soon as possible.
What Is California’s Community Property Law?
In California, a married couple forms its own “community” in the eyes of the law. Any assets, income or property gained during the marriage becomes jointly owned by both members of the community. If the couple divorces, state law will order a direct 50/50 split of all community assets and debts accumulated during the union. This is known as community property division.
With a community property law, it is irrelevant which spouse earned more during the marriage. All income earned by either party will be counted as community property and divided down the middle by a judge in a divorce trial. However, separate property (property owned by one spouse prior to the marriage or given to one spouse via inheritance or gift) is protected from division.
Unique Divorce Considerations for High-Net-Worth Couples
Regardless of a couple’s income bracket, California’s community property law will divide all shared assets evenly between both spouses if the case goes to court. This differs from an equitable division state, where a judge determines what manner of division would be the most fair or equitable for both parties.
High-net-worth divorce cases in particular can be complicated because of their unique issues. Special considerations can include:
- Luxury items as community property
- Shared business interests or assets
- Executive compensation or employment benefits
- Investments, stock options and retirement accounts
- Real estate portfolios
- Tax implications
- Inheritances and gifts (valuable separate property)
- The need for discretion to protect public image
- Prenuptial and postnuptial agreements
Unfortunately, the fact that both parties have so much at stake means that these cases are often highly contentious. If the couple cannot agree on a different solution for complex property division, the courts will order a 50/50 split.
How a Los Angeles High-Net-Worth Divorce Attorney Can Help
If you and your spouse are beginning a high-net-worth divorce in Los Angeles, it is important to protect yourself by hiring an exceptional divorce attorney early on. Hiring a Certified Family Law Specialist can allow you to aggressively protect your hard-earned assets from California’s community property law.
The right lawyer can help you plan for divorce and navigate various complexities with your wealth in mind. Your Los Angeles family lawyer can hire a forensic accountant, for example, to search for any hidden assets. Throughout the legal process, your divorce lawyer will help keep things confidential and out of public court to protect your image and reputation as much as possible.
A qualified attorney can assist with early planning to protect your assets and reduce the chance of legal disputes. Although these cases often take longer than lower-income divorce cases, an attorney can make things as expedient as possible by avoiding common mistakes. Overall, hiring an attorney to protect your best interests can allow you to go through the high-net-worth divorce process with greater confidence, peace of mind and results.
