The complexity of a divorce often increases with the value and diversity of a couple’s assets. This can lead to significant challenges, each posing potential points of contention. These disputes can prolong the divorce process and escalate litigation costs. Seeking the guidance of an experienced family law attorney in Sherman Oaks is crucial to protecting your assets. Contact a Sherman Oaks high net worth divorce attorney from Diarian & Bociaga today by calling (818) 205-9090.
What Are Common Points of Dispute in High Net Worth Divorces?
In California, the assets involved in high-net-worth divorces can include both typical and unique properties. Common points of dispute may involve:
- Investments
- Marital Home
- Fine art or other valuable collectibles
- Stock options
- Rental properties and other forms of real estate
- Privately-owned businesses
- Business interests
- Family enterprises
- Stocks and bonds
- Retirement accounts
- Pension plans
- IRAs (Individual Retirement Accounts)
- Profit sharing plans
- 401(k) plans
High net worth divorces can be particularly intricate due to the substantial and shared nature of assets like businesses, investments, and real estate. Ensuring these assets are accurately assessed is critical for equitable property division. It is also essential to have a skilled property division lawyer in Sherman Oaks who can effectively advocate for their client’s interests, including the accurate categorization of assets.
How Diarian & Bociaga Can Help
A high net-worth divorce requires a thorough review and valuation of assets. Our Sherman Oaks high net worth divorce lawyers work tirelessly to assist you by:
- Determining whether assets are community or separate property
- Evaluating stock options and restricted stock units
- Tracing claims on separate property
- Investigating real estate transactions
- Dividing community property retirement funds and protecting separate property retirement
- Offering expert advice on business valuations
Our high net worth divorce attorneys in Sherman Oaks are dedicated to ensuring our clients receive their rightful share under California law. Achieving a favorable outcome in a high-asset divorce demands persistent advocacy for clients’ rights and transparent communication. We will gather all the necessary information to ensure full disclosure and fair division of community property.
In some situations, collaboration and open disclosure can lead to an amicable or uncontested property division. However, if a mutual resolution seems impossible, our high net worth divorce lawyers in Sherman Oaks are prepared to vigorously represent our clients in court and uncover the truth through litigation.
Community Property Considerations
High net worth divorces in California are particularly complex because of the state’s community property laws. This designation as a community property state means that all assets accumulated during the marriage are considered jointly owned and are typically divided equally between the spouses in divorce proceedings.
This rule applies to high-value items like homes and cars, as well as to assets such as retirement benefits, stock options, and pension plans that might not vest until a later date. However, not all property is classified as community property in California.
Examples of separate property include:
- Assets owned before the marriage
- Income or proceeds traceable to separate property
- Gifts or inheritances received by one spouse individually
- Property purchased as separate property, with clear documentation such as a deed
- Assets specified as separate in a prenuptial or valid postnuptial agreement
In high-net-worth divorces, the classification of certain assets can be contentious. It is essential to have the guidance and representation of an experienced Sherman Oaks high-net-worth divorce attorney when determining community and separate property.
Given the significant value involved in high-net-worth divorces, accurate asset evaluation is crucial. When necessary, Diarian & Bociaga works with experts to assess the market value of both tangible and intangible assets, including investments and intellectual property.
We sometimes consult with forensic accountants to determine the value of assets or when a spouse may be hiding assets. The parties might agree to a neutral expert evaluator, or they could present differing evaluations for the judge to decide upon.
Community Property Business Considerations
When a business is considered community property, its value must be accurately determined, often with the help of expert business evaluators. These experts review financial records, public reports, recent tax years, and customer acquisition data to gauge the business’s worth.
A key component in valuing a business is its goodwill—an intangible asset reflecting the business’s reputation and standing in the community. Goodwill encompasses factors like employee skills and training, effective advertising, business procedures, and repeat customers. If one spouse is the “face” of the business, the goodwill value may be more difficult to ascertain and more contentious.
In some cases, the spouses may agree that one will buy out the other, ensuring fair compensation for the exiting spouse and allowing the remaining owner to continue running the business without involvement from their former partner.
Spousal and Child Support Considerations
In high-net-worth divorces, spousal and child support often hinge on the standard of living the couple enjoyed during their marriage. California divorce courts typically try to avoid significant disparities between the two households post-divorce.
This often leads to deviations from standard child support guidelines to ensure a fair support amount. When one spouse was the primary earner, the other might seek substantial spousal support until they can achieve financial independence.
Accurately estimating income in high-net-worth divorces adds another layer of complexity. Many high earners have multifaceted income streams, some of which may be tricky to accurately determine.
In addition to large salaries, many high-net-worth individuals receive company perks like expense accounts and car allowances. They may also receive income in the form of dividends, bonuses, profit distributions, interest, and rental income.
Determining fair child and spousal support in these cases are not always straightforward and require guidance and expertise from a skilled Sherman Oaks child support lawyer.
Child Custody in High Net Worth Divorces
Many high-net-worth couples have children, presenting challenges similar to those faced by other parents, such as deciding custody arrangements and creating an effective parenting plan. These child custody issues can be resolved amicably if the parents agree on a plan from the outset.
Sometimes, the process begins with disagreements but ultimately reaches a consensus, possibly through mediation. However, in some instances, the matter proceeds to litigation, where a family judge makes the final decision. In family court, the primary consideration is determining what arrangement serves the child’s best interests.
Child custody is likely the most important issue facing divorcing parents regardless of economic status. Having an experienced and compassionate child custody attorney in Sherman Oaks is essential in protecting your child custody rights.
Let Us Assist You With Your High Net Worth Divorce
If you are facing a high net worth divorce, seek the expertise of a Sherman Oaks high net worth divorce lawyer to protect all custody, support, and property rights. Our skilled family law attorneys will work tirelessly to ensure all assets are disclosed and that you receive a fair and equitable resolution. Contact us today for a consultation.