High Net Worth Divorce

Los Angeles Lawyer for High-Net-Worth Divorce

Divorces involving high-net-worth individuals present unique complexities, particularly when it comes to the distribution of significant assets. Historically, these divorces might have encompassed community estates exceeding one million dollars, but in the Los Angeles area today, figures often reach tens of millions. Such cases require specialized handling due to their distinct challenges and the substantial tax implications of the decisions involved. It is crucial to obtain advice from a knowledgeable legal expert. For specialized legal guidance in high-net-worth divorces, Ms. Sahar Maknouni, a reputable attorney in Los Angeles, is highly recommended.

Property Division in a High-Net-Worth Divorce in CA

In California, a crucial aspect of navigating a high-net-worth divorce involves the division of property. As a community property state, California mandates that marital property, which includes assets and debts acquired during the marriage that do not fall under the category of separate property, be evenly split 50/50 in a divorce. Assets and debts that were acquired before the marriage, after the date of separation, or received during the marriage as gifts or inheritances, are considered separate property and remain with the owning spouse.

In California divorce proceedings, the division between separate property and community property can become complex, particularly with high-value assets acquired during the marriage. Separate property may transform into marital property through a process known as transmutation. This occurs when separate assets are commingled with community assets.

In high-net-worth divorces where substantial assets are involved, couples often require experts to accurately assess the value of the marital estate for property division. This may include asset tracing to determine the origins of funds used in purchases. Assets that are particularly challenging to value and divide include real estate such as vacation homes, private businesses or professional practices, high-value art and antiques, retirement accounts, and other financial assets. Additionally, disputes may arise if one spouse suspects the other of concealing assets, or over the use of commingled funds for purchasing specific assets. For example, if one spouse uses an inheritance to buy a vacation home and start a medical practice, while the other contributes income—considered community property—to mortgage payments and purchasing equipment for the practice, it complicates the separation of community and separate property. Furthermore, valuing a business’s goodwill often requires skilled legal guidance.

The specific experts needed in a high-net-worth divorce vary based on the situation, but almost invariably, a detailed and intricate process is essential to obtain a complete financial overview of the couple’s assets for precise distribution.

Child Support Concerns

High-net-worth divorces often raise complex questions regarding the calculation of child support.  In Los Angeles, like the rest of California, courts adhere to standard child support guidelines. These guidelines, however, are more straightforward in cases involving fewer high-value assets. In high-net-worth divorces, the range for potential child support payments is typically wider. Additionally, complexities in determining child support (and spousal support) may increase when there is a significant disparity in wealth between the spouses.

Effect of a Pre-Marital Agreement on a High-Net-Worth Divorce

In some cases, a premarital agreement dictates the terms of a high-net-worth divorce. However, there are instances where a spouse may challenge the validity of this agreement or highlight ambiguities in its terms, potentially leading to extended and complex divorce proceedings.

Consult a Seasoned High-Net-Worth Divorce Lawyer

Divorce can become particularly challenging when unresolved issues and significant financial stakes are involved. In these complex circumstances, it is crucial to have an attorney with a robust strategic approach and deep understanding of business-related matters. If you are struggling to navigate high-value assets and financial considerations during the dissolution of your marriage, consider reaching out to Sahar Maknouni, a trusted high-net-worth divorce attorney at Maknouni Family Law Firm, APC, in Los Angeles. To discuss your options, contact us at 310-691-1729 or through our contact form.