It can be overwhelming to navigate a divorce in California when high-net-worth is involved. Although there is no specific number that legally designates what is considered high net worth for divorce in Pasadena, California, many informally consider $1 million or more in assets a useful benchmark.
If you are experiencing a divorce that involves high assets, reach out for help from a qualified divorce attorney in Pasadena, CA. Although the divorce rate in California has declined since 2014, with 5.88 per 1,000 people divorced in 2022, there is still a lot to consider when processing a divorce—especially a high-net-worth divorce.
Navigating a High Net-Worth Divorce
High-net-worth divorces in Pasadena, California, differ from standard divorces because they involve substantial assets, complex financial profiles, and often high-profile individuals. This can include all kinds of assets, such as luxury vehicles, real estate, retirement accounts, art, antique collections, yachts, and investment holdings.
California is a community property state. This means that everything acquired during the marriage is considered shared property. However, division isn’t always straightforward, especially with investments that are not yet vested, matured, or realized in value.
Identifying Assets
One of the biggest challenges in navigating high-net-worth divorce in Pasadena, California, is the identification and valuation of assets. Unlike standard divorces, high-net-worth divorces tend to involve more complicated financial profiles that require more evaluation and assessment.
Business partnerships, art, antiques, and stocks can quickly add complications to asset distribution in a high-net-worth divorce. The process may require help from various professionals, such as an appraiser, a tax expert, or a corporate attorney, to assess the value of everything. A qualified and experienced divorce lawyer in high-net-worth cases can be your greatest resource for help navigating this process.
Once all assets have been properly valued, courts will then determine how to properly divide those assets. All transfers of property between spouses as part of a divorce are generally non-taxable, though there are some exceptions. Assets involving retirement accounts or the sale of appreciated property may carry tax implications.
Protecting Your Assets in a High Net-Worth Divorce
The first step in this process is to make sure you have the right resources to evaluate your assets. You will also want to make sure to seek legal representation at the Pasadena Courthouse. A lawyer can help you find the optimal strategy to follow in order for this process to go smoothly. During this time, it will be important to review your premarital agreement. This contains information about how assets and liabilities are to be separated in case of a divorce.
In high net-worth divorce cases, it is tempting to conceal or hide assets. However, it is important during this process not to attempt to do so. This may result in criminal charges. It is also not advised to gift assets to friends and family with the intent of receiving them back after the divorce. If you suspect your spouse is attempting these practices, it is advisable to seek out the advice of a forensic accountant.
If you are looking to keep a vacation residence, you may have to purchase it from your spouse or arrange a transfer of property. California Propositions 60 and 90 can apply, depending on your age, making the process more complicated. It is also advised to pay for future taxes and apply for new loans if there is a mortgage.
If you have both invested in a business or created one together, you may have to buy your spouse’s shares or divide the gains after liquidation.
Prepare for the Long Term
Divorce can be emotional. It is prudent to focus on long-term strategies. Patience is essential during the process. Make sure to consider all long-term impacts on issues such as debt acquired during the marriage, tax liability associated with dividing assets, and child support calculations.
High-net-worth individuals should be prepared to discuss all support considerations (financial disclosures of all types, spousal support, social media postings, bank statements, investment accounts, inheritances, real estate, business ownership, and shares or otherwise). Strive for full transparency. It is important to be honest when answering your high net worth divorce attorney in Pasandea, so that they can be in a position to support you.
FAQs About High-Net-Worth for Divorce in California
What Is Considered a High-Net-Worth Divorce in California?
A high-net-worth divorce in Pasadena, California, often includes the following:
- One million dollars or more in combined marital assets
- Business ownership
- Investment portfolios, including bonds, stocks
- Multiple real estate properties
- Retirement and pension assets
- Luxury assets (boats, art collections, luxury vehicles)
It is important to note that there is no legal delineation for a high-net-worth divorce. If your divorce involves complex assets, it is crucial to speak with a qualified divorce attorney.
What Is My Wife Entitled to in a High-Net-Worth Divorce in California?
In Pasadena, California, your spouse is entitled to half of the community property unless otherwise stated in a valid prenuptial agreement. This includes, but is not limited to, any of the following acquired during the marriage:
- Real estate
- Retirement contributions
- Business interests established or grown
- Income earned
- Debts incurred
There are many types of assets that are legally considered community property, so it is advisable to speak with an experienced attorney to understand your case.
What Assets Cannot Be Split in a Divorce in California?
Not everything is split in a high net-worth divorce in California. The following assets will usually remain separate during a divorce:
- Inheritances and gifts received during the marriage
- Personal injury awards
- Property protected during a prenuptial agreement
- Property owned before a marriage
Does the Wife Always Get Half in a High-Net-Worth Divorce in California?
Your spouse does not necessarily receive half of your combined assets in a divorce. California law requires an equal division of community property, not a guaranteed 50/50 split of everything owned. The Pasadena Courthouse will typically strive for an equitable distribution of assets, but many factors may play into the outcome. Factors such as prenuptial or post-nuptial agreements, separate property claims, and fault-based behavior may all affect the outcome.
Consult With a California Divorce Law Attorney
High-net-worth divorce can be complex. Due to the many complicating factors involved, it is strongly advised for all high-net-worth individuals navigating divorce in California to seek out the assistance of an experienced divorce attorney. This will help to safeguard financial interests and ensure equitable outcomes. If you are in need of assistance with a high-net-worth divorce in California, contact the Law Offices of Patricia Rigdon.
