High Asset Divorce Attorneys Near Me
Our High-asset divorce attorneys near me law firm is the key to ending your high-income marriage with minimal stress and maximum fairness. Bel Air couples who have a significant amount of valuable assets must factor in additional considerations when filing for divorce, and legal representation is beneficial for navigating the nuances of high-asset divorce.
With the help of S.L. Pitts, you can navigate the challenges of a high-asset divorce with confidence. Our team is committed to providing exceptional service that protects your assets and streamlines the divorce process. We are also able to adjust as necessary to meet the specific needs of your circumstances and divorce.
What Constitutes High Assets vs. High Net Worth?
While the terms are often used interchangeably, there are some distinctions between high-net-worth divorces and high-asset divorces.
In a high-net-worth divorce, a couple may possess liquid and non-liquid assets among their marital property.
On the other hand, high-asset divorces deal more with non-liquid assets. These are much harder to divide during a divorce. They can also add a considerable amount of complexity to the equation.
Common Types of Assets During a High-Asset Divorce in Bel Air
High assets come in different forms and can vary in value. As mentioned above, these are generally non-liquid assets, and they may be harder to access or divide. Their values must be determined to ensure each party receives an equal share of the assets. Below is a closer look at some of the common assets couples may have in this type of divorce.
Real Estate Holdings
A home is a considerable asset in any divorce. In high-asset divorces, couples may have high-value homes or own multiple houses or properties. This may be especially true when it comes to real estate in the Santa Monica Mountains and the Platinum Triangle areas. If these properties were purchased together by both spouses, then they will have to be appraised when assets are divided. Selling or transferring properties can be complex, so it is essential to seek professional and legal advice.
Business Interests and Professional Goodwill
Business owners and high-powered professionals may have a stake in a business either via ownership or shares. These interests are highly complex because they may include multiple assets and portfolios. Additionally, highly compensated professionals may develop professional goodwill in their role that may also be associated with financial benefits. These assets can be difficult to put a value on and separate evenly during a divorce.
Intellectual Property
Individuals or business owners may have considerable intellectual property in their name. These assets often include copyrighted materials, patents, trademarks, or even trade secrets. Intellectual property has an inherent value, but it also derives value from the time that went into it, the expense to register it, and any residual benefits it may produce. A careful evaluation of the sum value of intellectual property is important for determining how to handle it in a divorce.
Retirement and Investment Accounts
Couples who have high assets and a high net worth are likely to have a portfolio of retirement accounts such as a 401(k), IRA, and pension, as well as stocks, bonds, and certificates. Individuals may also have investments made through retirement accounts or in other assets such as businesses or products. These assets require a lawyer to carefully and skillfully calculate individual and cumulative values.
Luxury Goods
Many high-net-worth couples possess a number of luxury goods that are considered high assets. This may include jewelry, artwork and collections, designer clothing, collectibles, and vehicles, boats, and/or planes. Some of these assets appreciate over time, and some depreciate, so the most up-to-date appraisal value will need to be disclosed during the divorce.
How Assets Are Valued in Divorces for Bel Air Couples
Before high assets can be divided and distributed, they must first be valued. This is an important extra step in high-asset and net worth divorces. Appraisers and legal professionals should investigate all the assets that have been disclosed in the divorce and assess the value of each one. A high-asset divorce lawyer near you should also check to make sure there is no hidden property that could negatively affect the inventory, appraisal, and division of assets.
During this phase, community and separate property must be determined and sorted so that the right assets are accounted for during the divorce. Because many of the assets are not easily converted into liquid assets, some assets may need to be transferred, or one couple may need to buy out the other couple to fairly split up their property.
Division of Assets and Debts During a High-Asset Divorce
High assets must be divided fairly in a divorce. The first step during property division is to identify what assets are community property and which ones are separate property.
Community property is anything acquired together during the marriage and must be divided equally. Separate property is anything that each spouse had before their marriage, and this is exempt from division. Additionally, if separate property is used to acquire community property, then it is considered commingled assets.
Once all assets and debts have been identified and valued, they can be split up. California uses a 50/50 approach to ensure an equal distribution between spouses. Because a cash value may not be readily available during a high-asset divorce, decisions regarding division allocations can be complex and require the aid of our skilled high-asset divorce lawyers near Bel Air, CA.
The Role of Prenuptial Agreements in a High-Asset Divorce in California
If spouses created and signed a prenuptial agreement before they were married, this can be used to help guide asset division in a divorce. However, California courts do not favor prenuptial agreements and may not necessarily enforce them. They may uphold a prenup if it is deemed fair and was entered into with willingness and awareness. Even though this is not a fail-safe option, a prenup can provide the overall framework to help you and your spouse make initial decisions amongst yourselves about your assets.
Financial Support in a High-Asset Divorce
When it comes to financial support, decisions will be made with current lifestyles in mind. Whether you are paying for spousal support or child support, you may be obligated to provide payments that continue to maintain the lifestyles to which your spouse or child has been accustomed. The goal is to minimize the impact of the divorce, as well as meet financial needs.
In both situations, the payment amount will be determined by the capacity of the paying spouse and the needs of the receiving spouse. Spousal support may be granted on a short or long-term basis. Child support must generally be paid until each child covered reaches the age of 18. There may be exceptions to this, so it is important to always consult our nearby lawyers about your alimony and child support order to ensure you are not in violation.
Tax Implications in a High-Asset Divorce in Bel Air, CA
Couples who have high assets may face additional tax implications. Assets like real estate, vehicles, boats, and planes may be subject to capital gains taxes when money is made during the sale or transfer of these assets. Investments and retirement accounts may be taxed for early withdrawals when their value is being divided up during the divorce. Businesses may also be subject to taxation, but that will depend on the type, size, and interests of the business. Legal and financial counsel should be sought in these situations.
Recommendations for Streamlining a High-Asset Divorce
To avoid unnecessarily long divorce proceedings, there are certain steps you can take to streamline the process and finalize it faster.
The first of which is to hire an experienced high-asset divorce attorney near you who can guide you through the process and its intricacies. They can also help you and your spouse find ways to work together and communicate better, which also helps reduce the overall time your divorce will take.
Transparency with your spouse and your lawyer can speed up a high-asset divorce. This limits unwanted surprises and allows you both to have all the information you need easily accessible as it is required during your divorce. This also ensures that asset appraisals go smoothly and swiftly. The more you and your spouse can work together and limit conflict, the better your divorce will go and the sooner you can begin the new chapter of your life.
Alternative Dispute Resolution to Resolve High-Asset Divorces in Bel Air
Given the value of assets involved in a high-asset divorce, conflict can quickly emerge during the inventory, appraisal, or division of assets. As both parties vie for their stake and share of community property, couples may become emotional, hostile, or unwilling to compromise. With so much at stake, alternative dispute resolution (ADR) may need to be implemented, especially if couples want to avoid litigation. Below is a closer look at the pros and cons of ADR and litigation.
High-Asset Divorce Mediation
Mediation can be a good place to start if both parties have differences and experience difficulty communicating with each other. Mediation is a voluntary process that involves a neutral mediator who can guide conversation and help couples see each other’s point of view. This process is private, less expensive, and allows you to retain control of the outcome since the mediator will not make decisions on your behalf.
However, mediation is not suited for all divorce cases. If couples are not willing to compromise, are extremely hostile, or there is an imbalance of power or abuse, then mediation will not resolve the issues that exist. Complex financial assets may also require an avenue for resolution.
High-Asset Divorce Arbitration
Arbitration can be well-suited to complex cases and those that need another party to make a decision in the matter. This method is like a blend of mediation and litigation. You will each have the opportunity to share your requests and concerns with a third party known as an arbitrator, who can then issue a decision on the issue. Their decision may or may not be binding, so it is important to be aware of what type of judgment you receive.
Arbitration is more formal and structured, but it provides the opportunity for you and your spouse to share your differences and receive a decision from an objective viewpoint. Arbitration costs less than litigation and continues to be a private solution for resolving your divorce discreetly.
Collaborative High-Asset Divorce
Collaborative divorce is a great option for high-asset Bel Air couples who are in agreement or are committed to doing what it takes to decide the terms of their divorce without court intervention. In fact, the court recommends that couples use collaborative divorce to make decisions during divorce proceedings. This process gives you utmost control over the outcome of your divorce and is much less costly than litigation. Work with your lawyers to receive guidance throughout the process.
High-Asset Divorce Litigation
Litigation is used when alternative options break down. This allows both parties an opportunity to present their arguments and evidence before a judge who can issue a decision on the divorce or specific conflict. This is a lengthy process that can add a considerable amount of time to your divorce proceedings. It is also expensive, and the details of your divorce are public.
Contact Our High-Asset Divorce Attorneys Near Me Law firm
S.L. Pitts is equipped to help you navigate the complexities of high-asset divorces. We understand the challenges you may be faced with, and our experienced team ensures that they are handled skillfully and with discretion. You can be confident that your assets will be protected and your divorce will be resolved as swiftly as possible. Contact us today to schedule an appointment and talk to a Bel Air high-asset divorce lawyer near you.