Property division is one of the most complicated aspects of any California divorce and it can be even trickier in a high asset divorce.
There is no specific definition of a high asset divorce. It has traditionally been considered a divorce involving at least $1 million worth of assets, although that number has risen in the past few years.
Although the law is the same no matter how many assets you have, high asset divorces still tend to be more complex for various reasons.
Why high asset divorces can be more complicated
One reason is that you simply have more to divide, which means your divorce can take longer and cost you more. Another is that the more assets you have, the more you stand to lose. The stakes may seem higher.
Still another reason is that these divorces tend to have more complex types of assets, such as real estate, business interests, stock options and more.
Assets and taxes
Because of these issues, there are some things you should pay special attention to in your high asset divorce.
Perform a thorough investigation and valuation of all your assets. This is a part of any property division, but it is even more vital in a high asset divorce to ensure a fair and equitable property division.
Overvaluing or undervaluing assets or failing to locate certain assets can create future problems or result in an unfair outcome.
Do not overlook the tax implications of your property division. Taxes can majorly impact property division in a high asset divorce, with long-term consequences. A tax advisor is generally recommended in a high asset divorce.
Managing your emotions
Finally, try to keep your emotions out of the property division process. Emotions are usually at a high during a divorce, which is understandable.
You likely feel a range of emotions including anger, fear and sadness, and while you should focus on your mental health and healing, letting emotions get in the way can lead to making poor decisions in your divorce.
There is no guarantee that your high asset divorce will be simple and stress free. However, by keeping these tips in mind, you can reduce the chance of conflict that prolongs the process or causes problems down the road.
