Los Angeles High Net Worth Divorce Attorney
High-net-worth divorces pose unique challenges that regular divorces do not. These divorces are considerably more complex, and it is essential to hire an experienced Los Angeles high-net-worth divorce attorney who can guide you through the process and ensure you receive what you are entitled to in the divorce.
When you hire S.L. Pitts, you can be confident that we will handle your divorce with wisdom and discretion. We tailor our strategies to your circumstances so you can receive maximum results in the divorce. Our Los Angeles high net worth divorce attorney law firm prioritizes you and your needs, and we work closely with you to creatively resolve the challenges that stand between you and the finalization of your divorce.
What Qualifies as a High-Net-Worth Divorce in Los Angeles?
When one or both spouses possess more than $1 million in assets, they are considered high-net-worth individuals. These individuals often have a variety of assets spread across different sources. The value of each asset may vary significantly from one to the other.
Some common assets a high-net-worth individual may have include:
- Savings, checking, and money market accounts
- Stocks and bonds
- Investment accounts
- Trust accounts
- Retirement accounts such as a 401(k), IRA, or pension
- Cryptocurrency
- Digital assets
- Houses and other types of real estate
- Vehicles, boats, and planes
- Businesses, business shares, and other business interests
- Intellectual property
- Jewelry
- Art collections
Many of these assets can be challenging during high-net-worth divorces. All assets are subject to division in a California divorce, but the value of these assets may be unclear or complicated to separate. The value of all assets must be appraised in high-net-worth divorces to ensure an accurate estimate so the divorce can be resolved equitably. Once an appraisal is complete, assets can be divided between both spouses.
Unique Challenges to High-Net-Worth Divorces in Westside LA
Given the volume, value, and complexity of high-net-worth divorces in Los Angeles, these proceedings are often very complicated. Assessing the value of assets and debts can take time and investigation. Additionally, if the couple has a high profile in their community or through their business, then concerns may arise about perception, privacy, and loss of standing or assets during the divorce.
Other challenges can arise if spouses are hiding property. This can pose a significant challenge during a divorce, as it can make it difficult to assess the value of assets and divide them up fairly. If you notice your spouse moving money around, making unusual purchases, transferring assets, or not getting paid on time, it is important to talk with one of our Los Angeles high-asset divorce lawyers right away. They can help you take action to ensure that your spouse is held accountable and all assets are accounted for during the divorce.
Why You Need Our Experienced Divorce Attorneys in Los Angeles
To streamline the process and reduce stress, these types of divorces should be handled by qualified and experienced high-net-worth divorce lawyers in Los Angeles, CA. These divorces require a thorough understanding of the law and court system, and a lawyer can navigate obstacles and secure a better outcome than you would receive if you did not hire legal representation.
There are many legal implications when it comes to high-net-worth divorces, and our law firm can ensure you are protected.
California Divorces Have Many Legal Requirements that Must be Fulfilled
Couples in Los Angeles County do not need to provide a reason for a divorce or legal separation. Many can cite irreconcilable differences or permanent legal incapacity according to California Family Code §2310. To get a divorce in California, at least one spouse must initiate the process by filling out the appropriate forms and submitting them to the court. At this point, papers must be served to the other spouse, for which they are given 30 days to respond. If they do not respond, then the petitioning spouse will receive their requests by default.
Once the divorce process has begun, both parties must provide a financial account of the assets, debts, income, and expenses to the other spouse. High-net-worth divorces in Los Angeles may also require a valuation to be done to determine the value of the assets involved.
From here, couples begin the arduous task of dividing assets, determining custody arrangements and child support payments, requesting spousal support, and making any other decisions relevant to the divorce. If both parties can reach an agreement on their own or through another dispute resolution method, then a judge will review the signed agreement and issue the divorce. If litigation is necessary, additional court involvement may be needed prior to the divorce being approved.
High-Net-Worth Divorce Timelines Can Vary Considerably
Divorce timelines can vary considerably, as every case is different. While a typical divorce case can take a minimum of 6 months to resolve, high-net-worth divorces are likely to take much longer. Minimum time frames are often based on best-case scenarios, when in reality, they often take much longer to resolve.
High-asset divorces can easily take a year or more due to the complexity of the assets involved. One of our high-net-worth divorce lawyers in Los Angeles can provide additional clarity after assessing your and your spouse’s situation.
Legal Separation vs. Divorce
Legal separation can be a good option if there is uncertainty about getting a divorce. Divorce is permanent, and separation is not, so it is important to be sure before filing for divorce.
If you and your spouse feel like you may reconcile, want to test out living separately, or do not feel comfortable with divorcing for religious reasons, a legal separation allows you to lead independent lives while still remaining married and enjoying the legal benefits.
It is also important to note that for a legal separation, you must still file for it, make decisions about assets and children, and have the court issue an official separation order.
Dividing Assets Can Be a Lengthy Process in a High-Net-Worth Divorce
During a divorce, all assets and debts must be assessed and divided between both parties equally. California takes a 50/50 approach, so each party receives an equal share. All assets and debts acquired during the marriage are considered community property, while anything that was acquired before the marriage or was solely gifted during the marriage is considered separate property. The latter may be exempt during the division of assets.
In high-net-worth divorces, it can be much harder to tell what community property is and what separate property is when they become mixed together. This is known as commingled assets. This often occurs when couples use separate funds to buy property, open a joint bank account, or start or invest in a business together. This can create considerable challenges, and individuals could risk losing assets as a result.
Additionally, given the nature of some of the assets involved in a high-net-worth divorce, their values may be very different from each other. Some may be more easily divided than others, which means that assets of similar values are traded, per se, rather than split apart evenly.
To ensure that each spouse receives what is rightfully theirs without losing assets, a skilled Westside LA high-net-worth divorce lawyer from our firm will thoroughly assess all assets and help you find a fair division of assets that you are satisfied with.
Spousal Support May Be Approved After Significant Court Consideration
Spousal support may be sought in a divorce when there is an eligible financial need. This request is not guaranteed to be approved, but the court will consider these requests based on certain factors. According to California Family Code § 4320-4326, the court will take into consideration the duration of the marriage, financial need, and lifestyle factors. They will assess whether the requesting spouse needs support temporarily or long-term.
If the court approves the petitioning spouse’s request for spousal support, then the other spouse is legally bound to make payments in the amount agreed upon. The amount of spousal support will depend on the need, financial capacity, and income of the spouse making payments.
Unique Considerations Concerning Child Custody and Support in High-Net-Worth Divorces
Custody must be decided in divorce cases involving children. Parents must work together to develop a parenting plan that outlines how parenting time is to be divided, how decisions will be handled, the amount of child support to be paid, and more. This process often becomes contentious with both parents vying for very specific outcomes. The more parents can work together, the more control they have over the outcome, and the more it will lessen the impact on the child.
High-net-worth divorces may create additional challenges during child custody and child support decisions. Children may be used to a certain lifestyle or quality of education, and this must be taken into account during custody decisions. Custody decisions are made with the child’s best interest in mind, and the standard for this may be adjusted to reflect the resources and needs of high-net-worth families. A stable living situation and financial support will be weighed carefully during proceedings.
Resolving Disputes and Avoiding Litigation in High-Net-Worth Divorces
If you and your spouse are finding it difficult to reach an agreement on various aspects of your divorce, it may be necessary to try some alternative dispute resolution (ADR) methods before resorting to litigation. These options are a way for you to receive facilitated support so you can reach a compromise that is agreeable to both of you.
Mediation is a common form of dispute resolution and involves a neutral party known as a mediator. They listen as you and your spouse share your frustrations, goals, and concerns. The mediator will facilitate the discussion and pose questions on matters that may help you and your spouse find common ground. They will not make a decision or tell you how to proceed. They also do not have the authority to issue a decision in the matter.
Arbitration can be helpful in complex cases such as high-net-worth divorces. This process is more formal than mediation but less formal than litigation. Each party may make an argument about the matter being discussed. After hearing both sides and facilitating discussion, an arbitrator may make a decision, which could be either binding or non-binding.
The benefits of ADR are that it allows you to save time and money. Another benefit, especially in high-net-worth cases, is that it allows you to keep the details of your divorce private and confidential, unlike litigation. It also allows you to have greater control over the terms of your divorce and preserve the relationship with your spouse to the best extent possible. Talk with our Los Angeles attorneys to see if ADR is right for your high-net-worth divorce.
Tax Implications in a Los Angeles High-Net-Worth Divorce Case
It is important to be aware that high-net-worth divorces in Los Angeles may have some hefty tax implications. Some assets, like retirement accounts and investments, are often taxed when early withdrawals are made. Other assets, like real estate, may be subject to capital gains taxes when they are sold or transferred. Businesses and financial support in a divorce may also be subject to unique tax implications on either the federal or state levels, depending on the situation.
It is essential to talk with our high-net-worth divorce attorneys in Westside LA as well as an accountant to determine what taxes may apply in your situation and how to prepare for them. A legal and tax professional can help you plan accordingly and make decisions that will minimize your liabilities and protect your assets as much as possible.
Contact Our Los Angeles High Net Worth Divorce Attorney Near Me Law Firm
S.L. Pitts knows the challenges of high-net-worth divorces in Los Angeles County and the obstacles that can arise throughout the process. Our attorneys are prepared to fiercely advocate for you so you can be confident that your interests are protected during the divorce. Learn more about your options moving forward by contacting our firm today to schedule an appointment with one of our attorneys.