Divorce and the many changes that come with it isn’t easy for anyone. But in cases where one or both spouses have a substantial amount of assets, the legal process associated with ending a marriage can be even more complicated. In high net worth cases, dividing property and assets can be a significant source of contention — and it’s crucial to ensure you have legal counsel by your side who can adequately protect your rights and financial interests.
The stakes are high when there are considerable assets that must be divided in a divorce. Due to the complexities involved, high net worth divorces must be handled with the utmost skill and precision. The Law Offices of Rick D. Banks has assisted countless clients with their high asset divorce cases and securing favorable results on their behalf — whether the outcome is achieved through litigation or outside the courtroom. With a focus on implementing a carefully crafted strategy in every case, we strive to ensure positive results are achieved.
A high net worth divorce involves the same issues as a traditional divorce. However, in these cases, there are usually one million dollars or more in assets at issue that must be divided. This can make the divorce process even more lengthy and contentious. Not only must these assets be identified and valued, but they may also need to be uncovered.
Intricate asset division issues can arise in high net worth cases. For example, one or both spouses may own a business or have corporate interests. There can also be multiple investment properties, international issues, and tax matters that come into play. Forensic accountants, business valuators, and other financial experts are often used in high net worth divorces to provide crucial information that can guide the parties toward reaching a settlement.
In addition, the amount of alimony and child support that must be paid is impacted by the net worth of each spouse. A court will evaluate the lifestyle the lesser-earning spouse and the children were accustomed to during the marriage and issue orders that allow them to maintain it. Significantly, there is no cap on the amount of child support that can be ordered in California.
In a California divorce, property, assets, and debts must be characterized and properly valued before they can be divided. Importantly, only community property is subject to division. Assets that are classified as community property are those acquired by either spouse during the marriage — regardless of who purchased the property or how it is titled. Separate property is that which was owned by either spouse prior to the marriage.
Community property that may be divided in a high net worth divorce can include the following:
While California courts typically divide community property equally during a divorce, matters can become extremely complicated when separate property and community property are commingled. Commingling occurs when a spouse’s separate property is mixed with community property — in such cases, either all or part of the property that would otherwise have been considered separate may be deemed community property and divided.
One of the most important things any party can do in divorce is be open and transparent about their financial situation. Attempting to hide assets is not only illegal, but it can result in that party being held in contempt of court. The Law Offices of Rick D. Banks has extensive experience assisting high net worth clients with identifying community property and helps to ensure no stone is left unturned. We work with financial experts and utilize a variety of tools to ensure full financial disclosure is made and your spouse is not concealing assets that are subject to division.
Those with careers in entertainment, sports, or other high-profile industries face unique issues when divorcing. In addition to the amount of wealth that may exist between the individuals — and the strain that can come with separating it — a high level of discretion must also be maintained. Since court records are generally not sealed, reaching a settlement out of the public courtroom is preferred in these cases.
There are certain steps that celebrity and high-profile couples can take to reduce the stress associated with divorce and the media coverage that may also come with it. Critically, alternative dispute resolution methods such as negotiation, mediation, and collaborative divorce may be viable options to resolve the issues that need to be determined in a high-profile divorce. They can help to minimize conflict, ensure privacy during the divorce process, and keep your settlement agreement confidential.
Retaining the counsel of a trusted attorney with a deep understanding of the nuances of a high-profile and high-asset divorce can make an enormous difference to the outcome of your case. The Law Offices of Rick D. Banks is dedicated to helping clients navigate the treacherous waters of high-profile divorce so they can move on with their lives.
If you possess a substantial amount of assets and are facing divorce, it’s essential to consult with a seasoned matrimonial attorney who handles high net worth cases. Having worked with numerous high net worth clients, The Law Offices of Rick D. Banks has the resources and knowledge necessary to help you reach positive results in your case. Contact us today at (559)222-4891 so that we can advise you as to your best course of action.