Division of Assets in Los Angeles, CA
Divorce cases often involve the division of assets that requires forensic experts to ascertain their value and proper method of division. If you are getting a divorce, you need Los Angeles asset division lawyers who have the skills, experience, and resources to effectively manage the division of your marital property and protect your interests.
There are several complex and high-value assets that can make the division more difficult. In such cases, the attorney must have the experience and knowledge needed to identify a vast array of financial, legal, accounting, and tax-related issues relative to the division of these assets. Your attorney must also assemble, supervise, and manage a team of experts to prepare and present your case.
It is crucial that you entrust your property division to professionals who handle your finances with the discretion and care you deserve. For the effective legal representation you need during your divorce, contact Zitser Family Law Group, APC today to discuss your case.
Zitser Family Law Group, APC: Dividing Your Property and Protecting Your Rights
It’s always important to carefully choose the legal team you work with for your divorce, particularly when you have complex assets to address. The team at Zitser Family Law Group, APC is led by Diana P. Zitser, Esq., who is a Certified Family Law Specialist. We have substantial experience in complicated property division and can help you protect your interests. Our team has more than 20 years of family law experience, and we use this experience to support you.
Every divorce is difficult, and asset and debt division can add to the stress and financial uncertainty of the process. We listen to your concerns and priorities for your assets, and work to obtain a fair outcome to the property distribution. Our team provides you with individualized legal support, defending your rights to the property you need to uphold your and your family’s standard of living.
How are assets divided in a California divorce?
California is not an equitable distribution state but a community property state, meaning your attorney must determine whether your assets are considered community or separate property. The community or marital property must then be divided equally between spouses.
Community property is anything acquired throughout the duration of your marriage, while separate property includes any assets acquired prior to or after your marriage. Each spouse retains their separate property while splitting their community property 50/50.
It is crucial that community property is appraised accurately, or else one party may end up with more or less than their legal half of community property. It is also crucial that a couple’s assets are accurately categorized as separate or marital assets, for the same reason.
While couples must divide their property equally, how they choose to split those assets and debts can be left up to their discretion. An equal division does not mean all community property is divided in half, but that the value of each spouse’s community assets ends up equal, or as close to equal as possible. Determining asset division is one of the most contested matters in any divorce, so you must have strong legal representation on your side.
Property Division Outside of Court
Division of community assets can sometimes be divided in ways other than community property laws. If you and your spouse can reach an agreement in a settlement outside of court, you can determine the split of assets and debts. It does not have to be split equally.
However, this agreement must be approved by the court. In most cases, the court approves an agreement you make together. If the agreement is unfair to either spouse or unconscionable, and it puts one spouse in financial hardship, the court will not approve it. This is why it is beneficial to work with legal representation when negotiating an out-of-court settlement. Legal support can help you determine if the agreement is fair and likely to be approved by the court.
If you and your spouse cannot come to an agreement that the court approves of, then the court will divide your assets based on community property law.
What Property Must Be Accounted for in a Divorce?
The property that must be evaluated and categorized in a divorce is broad. Couples must review anything of value, ranging from personal assets to bank accounts. The assets that must be considered and appraised include:
- Bank accounts including savings accounts and joint accounts
- Retirement plans including 401Ks and pensions
- Businesses and business interests
- Stocks, bonds, and other investments and securities
- Professional practices
- Personal property, such as art, clothes, antiques, appliances, and furniture
- Real estate, including homes, land, vacation properties, and commercial real estate
- Cars, motorcycles, boats, and other vehicles
- Assets held in trusts
- Inheritance and heirlooms
A divorce must also split the couple’s marital debts. Debts are determined to be separate or community just like assets. Debts include mortgages, credit card debt, business digits, vehicle loans, student loans, and tax liabilities.
Much of this property could be considered community property, and therefore subject to division between spouses. There are some exceptions for assets obtained during marriage, like inheritance given only to one spouse, but most assets are community property.
Types of Complex Assets in Divorce Cases
Some types of property are more difficult to categorize and appraise than others. High-value and complex assets are much more likely to require professional evaluation. Professional appraisers will be needed to determine the value, and forensic accountants and other professionals could be needed to categorize the asset as separate or marital property. Some common complex assets include:
Closely Held Business
As opposed to a publicly traded business, a closely held business is typically owned and managed by a small group of shareholders. These types of businesses include automobile dealerships, media businesses, high tech, and other high growth companies, property insurance companies, and small businesses like bars, gas stations, construction companies, banks, and printing companies. Because shares of closely held businesses are not publicly traded in the stock market, it is difficult to determine their value. Valuation requires looking at the level and timing of future cash flow, as well as the certainty of the future of the business.
Professional Practices
Professional practices include legal, medical, and dental practices. Oftentimes, professional practices present unique valuation issues. For example, healthcare costs are rapidly rising and must be accounted for when evaluating a medical practice. Additionally, professional practices typically require a large malpractice insurance policy which must be considered. Often, the future success of these practices depends on intangible assets like customer goodwill and the skill of the professionals involved.
Real Estate
Real estate holdings may include high price homes, vacant land, and shopping centers. Valuation requires looking at comparable real estate sold in the area, replacement value, and cash flow of any income properties. Further, analyzing zoning codes and the need for specific types of property are essential in an accurate real estate valuation.
Fortune 500 Company Pensions
Equitable distribution of Fortune 500 Company pensions requires taking into account projected retirement age, the projected value of the pension, and deciding whether to divide it equitably over time or all at once.
Assets and the Entertainment Industry
A divorce where one or both parties come from an entertainment background can be especially challenging. Not only are different businesses often involved, but there are other tangible and intangible assets that need to be accounted for. These unique cases can benefit from an experienced divorce lawyer with the resources to properly categorize and value the property.
For example, there are assets that generate revenue like patents, trademarks, royalties, and other intellectual property. There are also assets that lack specific economic benefits, like customer lists and the expectancy of repeat patronage. Experts are required to determine the equitable distribution and the value of these assets. Selecting the correct expert, presenting a persuasive case, and weakening the case of the opposing side are often essential in obtaining a favorable outcome.
Addressing Hidden Assets in Property Distribution
It can be incredibly frustrating and distressing if you suspect or realize that your spouse is hiding assets during the divorce process. When spouses have complex, high-value, or unique assets, hidden assets are unfortunately more likely. There must be an open exchange of financial information during the discovery process in divorce. If you suspect your spouse is hiding assets, talk with your attorney about a formal discovery process.
Spouses may want to hold onto certain assets after a divorce, may want to get back at the other party, or may be wanting to maintain a higher standard of living. Whatever the reason, hidden assets need to be uncovered to ensure a fair outcome to the divorce.
When either spouse hides assets, they can significantly affect the fairness of asset and debt division. Hidden community property means that the division of assets is not actually equal or fair, and leaves one spouse with less than their fair share of assets. Hidden separate assets can also impact the outcome of a divorce, because each party’s separate assets may be considered when determining the needs for alimony or child support.
There are many ways that spouses can hide assets, including by undervaluing a business, putting marital finances into separate accounts, or having hidden sources of income. If a spouse hides this information during the formal discovery process, your attorney can use tools to uncover that information and potentially hold them in contempt of court. You deserve your share of marital assets, and an experienced lawyer can help you secure your financial future.
Contact Zitser Family Law Group, APC
When dealing with any of the assets listed above, you can appreciate how important it is that you select the right expert and present the case in the most favorable light for your particular circumstance. Here at the Zitser Family Law Group, APC, we possess the knowledge and experience it takes to handle the division of these assets. We will represent your interests utilizing the extensive resources at our disposal to obtain the best possible outcome for you. We will help you evaluate the multitude of factors involved and guide you to find a solution that is uniquely right for you. Contact us today.
