For any couple making the decision to end their marriage in Santa Rosa, CA, divorce is a difficult process. For wealthier couples with many assets and a high net worth, however, there can be more specific financial challenges. These can range from property division to issues with taxes and inheritance. Because high-net-worth couples often have more assets, like homes or cars, and may own businesses, it can be difficult to determine which spouse will come away with which assets. However, high-net-worth couples do not have to face these challenges alone.
Because high-net-worth divorces come with a unique set of challenges, it is crucial to hire a Santa Rosa high-net-worth
][divorce lawyer with experience. High-asset divorce is never easy, but with a high-asset divorce attorney, it can be much easier. At Carroll Law Office, our attorneys have extensive experience with Santa Rosa high-net-worth divorce cases. We understand not only the financial hardship of divorce but the emotional aspect as well, and we can provide compassionate guidance during this hard time. We have helped our clients come away from divorce with their fair share of assets, and we can help you do the same.
A high-net-worth divorce is any divorce in which the couple’s assets total at least one million dollars. Because there are more assets involved in this type of divorce, there is more property to be divided between spouses. For this reason, these divorces are often longer and more complex than typical divorces. This can have an emotional toll on individuals who want their divorce to be over quickly so they can move on. Luckily, a high-net-worth divorce lawyer can help streamline the process.
Another reason these divorces are so complicated is the fact that, oftentimes, assets are involved that can change in value, such as stocks and bonds. Because of this, another step must be added to the divorce process, which is having a professional valuation done. This will ensure that everything is valued accurately and that assets can be divided fairly.
Lawyers are important in all divorces, but they are especially vital in high-net-worth divorces. An experienced lawyer knows how property should be divided, how to address any tax concerns, and how to proceed if you think your spouse may be hiding assets. Furthermore, if an agreement cannot be reached, litigation will occur. A lawyer is crucial during this step to represent your interests and ensure you get what you are entitled to.
In the state of California, community property is split equally between spouses, while separate property goes to the individual spouse it belongs to. Community property is a shared property that belongs to both spouses. This includes money earned while married and assets gained with that money during the marriage. It does not matter if only one spouse’s income was used to pay for something—if it was purchased with money earned during the marriage, it is community property, and both spouses are entitled to it. Community property includes debt as well—both spouses are responsible for the debt that was taken on during the marriage.
Separate property is different. It includes anything a spouse owned before the marriage or after the separation as well as anything bought or earned with that property. For high-net-worth couples who may have received an inheritance or other gifts, it is important to understand that if something was gifted to one spouse, it is separate property and thus only belongs to the spouse it was gifted to.
Once the property is identified as separate or community property, it will then be valued and divided. Things like houses or cars acquired with money earned while married can be identified as community property and should be split equally. However, this can be more complicated for high-net-worth couples, as they most likely own many assets that are considered community property. Houses or cars cannot be split in two, so these couples must come to more complicated agreements, which can involve heated disputes. This is why having a knowledgeable Santa Rosa high net-worth divorce lawyer is crucial—they can help ensure that you get the property you are entitled to amidst the chaos.
In California, community property, which is any asset that was acquired during the marriage, must be split equally between both spouses. Couples can come to this agreement on their own or during mediation. Otherwise, the decision will be made by the court. Therefore, it is impossible to divorce without splitting assets. However, separate property, which is property gained before the marriage or after separation, as well as anything gifted to a certain spouse, will go to the spouse it belongs to—it will not be divided equally.
Divorce does affect the net worth. If you acquired your net worth during your marriage, it will be split 50/50 with your spouse, and therefore, your net worth will decrease by half. Anything you earned before marriage, however, will go to you. Thus, the more wealth you have before marriage, the less your net worth will decrease.
A high-net-worth divorce is considered a divorce in which the couple’s assets are greater than or equal to one million dollars in value. These divorces can vary greatly from most because they involve more assets and, therefore, more things to separate between spouses. Having a divorce lawyer is critical to managing all the various aspects of a high-net-worth divorce.
A prenuptial or postnuptial agreement is one of the most secure ways to protect your net worth from divorce. This way, you can outline which assets should go to each spouse. This agreement will take priority over the community property rules, which would normally split property gained during the marriage equally between spouses.
At Carroll Law Office, our experienced Santa Rosa high-net-worth divorce attorneys can help guide you through the difficult process of divorce and property division. We understand the difficulties of a long divorce process, and we can negotiate with your ex-spouse so you don’t have to. You want to ensure that you receive as much property as possible, and we can ensure this is done fairly and smoothly. Contact our office to learn more about how we can make your high-asset divorce less stressful.
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