Divorce is already a complex emotional time for those involved, as it can be devastating to end a marriage. However, when these feelings of anger, resentment, and grief are mixed with disputes over high net worth assets, your divorce can turn very complex quickly. As property division is one of the most contested aspects of divorce, understanding what assets can make your divorce complicated is critical. The following blog explores what you should know about these matters and why connecting with Los Angeles high net worth divorce attorneys is critical.
What High Net Worth Assets are Commonly Handled in Divorce?
Generally, a divorce is considered high net worth when one or both spouses have one million dollars in liquid and illiquid assets. Common assets handled during high net worth divorce include, but are not limited to, the following:
- Liquid assets
- Real estate
- Businesses
- Stock options
- Vehicles
- Retirement accounts
- Insurance policies
- Collections
While a traditional divorce can be hard to settle, high net worth divorces can be incredibly complex due to the number of complicated assets held by the couple. Because California is a community property state, all assets deemed marital property will be divided evenly between the spouses unless they can agree on a different split or have a pre- or post-nuptial agreement in place detailing what will happen to their assets upon divorce.
What Issues Can Arise?
Due to the complicated nature of these assets, high net worth divorce can be much more challenging to navigate. One of the most common issues that arises is that the couple cannot agree on how to value a certain asset. For example, if a business must be valued, the parties may each hire their own entity to conduct the valuation. If the estimates provided are drastically different it can complicate the matter.
Another common issue is ensuring that all assets are accounted for during this process. Whether intentional or not, assets left out of the valuation can become a significant issue later, as it impacts how these assets are divided. For example, if your spouse fails to disclose certain investments or stock options because they want a more favorable outcome, they can be held in contempt of court and may lose ownership of said assets.
Finally, you’ll find that due to the nature of high net worth assets, many tax implications can arise due to the the transfer of assets between spouses. For example, you may find that transferring assets can take a toll on the annual gift tax, or that splitting retirement accounts can have tax liabilities.
Navigating a high net worth divorce can be incredibly complicated, which is why it’s in your best interest to connect with an experienced attorney who can assist you through these matters. At the Zitser Family Law Group, our dedicated legal team has the experience you need to help you navigate this emotional time. Our team will do everything in our power to assist you through these matters. Connect with us today to learn more.
