Any divorce is complicated, but high-asset divorces tend to be particularly
complex. When one or both spouses in a marriage is a high-net-worth individual,
divorce-related processes such as property division and child custody
can significantly impact the financial stability of both parties. Knowing
what to expect from your high-asset divorce can help you lay the foundation
for a better future as you dissolve your marriage.
At Arnold Law Group, APC, we'll work with you to protect your assets
and best interests throughout your divorce. Contact us online
or via phone at {F:P:Sub:Phone} to schedule a consultation with our team.
Think About Taxes
California is a community property state, meaning you must split marital
assets and liabilities equally with your partner during the
property division process.
In a high-asset divorce, the outcome of your property division case can
completely change what your taxes look like post-divorce. This is especially
true in a divorce where one partner has a high-net-worth and the other
acts as a stay at home parent or earns less money.
If you own an estate of significant value, how you handle it during and
after the divorce could also impact your taxes. If one party chooses to
keep the estate, they'll need to pay for estate taxes by themself.
Alternatively, if you choose to sell your estate, capital gains taxes
may impact you when tax season rolls around post-divorce.
Your divorce lawyer can tell you how property division will probably impact
your finances, but working with an experienced financial professional
is also a good idea. They can help you understand the pros and cons of
selling or keeping certain property and how the choices you make during
property division will affect you financially.
If You Have Children, Child Support and Custody May be Complicated
In a high-asset divorce, the already complex child support and custody
processes can become even more complicated.
The court's objective during custody and support disputes is to ensure
that children maintain the same quality of life post-divorce they enjoyed
while the parents were married.
To that end, if one parent is a higher earner and took on certain costs—such
as paying for extracurricular activities, academic services, or vacations—the
court may expect that parent to maintain those expenses, even if they
see the child less post-divorce or don't have sole custody.
Talk with your lawyer about likely outcomes in your child custody and support
case. The more proactive you are, the easier it will be to fight for a
custody and support arrangement that's equitable (and budget for the
impact of that arrangement on your finances).
Things Can Get Complicated for Business Owners
In a high-asset divorce, it's not uncommon for one party to be a business
owner. If you or your spouse owns a business, it will complicate the property
division process.
As a rule of thumb, even if the business was founded before you got married,
the court will probably consider income generate by the business and any
value it accrues during the marriage as marital property.
Whether you or your spouse owns the business, discuss options with your
lawyer. If your spouse owns a majority of the business, you could ask
them to buy you out. Alternatively, if you're on good terms, you could
continue operating as co-owners post-divorce. Speaking with your lawyer
can help you devise the perfect arrangement for your circumstances.
At Arnold Law Group, APC, we'll usher you through your high-asset divorce,
protecting your rights and pursuing your best interests in and out of
the courtroom. Contact us online
or via phone at {F:P:Sub:Phone} to schedule a consultation with our team.