Divorce is already complicated, but when significant wealth, business interests or investments are involved, the process can stretch on for months or even years. Community property laws apply in California, which means in most divorces, assets acquired during marriage are divided equally with a few exceptions. But the split is not as straightforward as you think.
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Complex assets take longer to divide
Typical divorces deal mainly with wages, properties and savings, but high-asset cases involve more. Some examples include:
- Businesses and professional practices that require assessment
- Multiple properties like vacation homes or income-generating rentals
- Investment portfolios, stocks and retirement accounts
- Intellectual property or brand rights
These assets are more complex and cannot simply be split in half. The former spouses will need to hire financial professionals, appraisers and forensic accountants to ensure fairness. This adds considerable time to the process.
Disputes over hidden or misvalued assets
There are instances where one spouse may suspect the other of hiding money or undervaluing assets, so they do not get divided. California courts require full disclosure, but uncovering these offshore accounts, trusts or complex investments can take months, sometimes years, of investigation. Just acquiring subpoenas for these assets takes a long time.
Taxes and timing
Couples and their lawyers need to plan any sales or transfers carefully to avoid paying more taxes than necessary. If one spouse owns a business or has income that changes from year to year, the timing of the divorce can also impact how much those assets are worth and what each person gets.
The emotional and strategic side
High-asset divorces often involve strong emotions. Disputes can come up over who keeps a family business or property that has sentimental value. Sometimes, arguments drag on out of pride or the desire to gain the upper hand, which can further delay the case. Mediations can speed things up, but it depends on the former spouses’ willingness to cooperate.
Protect your financial future
You need a good lawyer when processing a high-asset divorce. A skilled divorce attorney can help identify, value and divide property fairly while protecting your long-term financial interests. The right strategy can save you time, stress and money in the process.