How International Assets in Divorce Cases Are Handled in California
Divorce is complicated enough when all of the marital property is located within the United States. However, when one or both spouses hold assets in another country, the process can become significantly more difficult. California courts can divide these assets in theory, but actually finding them and figuring out what they are worth isn’t always straightforward.
Here is what you should know if foreign assets are part of your divorce in the Golden State.
California’s Community Property Rules
In California, most assets gained during the marriage are split equally between both spouses based on the state’s community property laws. This rule still applies if the property is located in another country.
For example, a house in Mexico or a business investment in the UK may be divided in a California divorce if it was acquired during the marriage with marital funds, although property acquired while the spouses lived outside California may be classified as quasi-community property rather than community property.
On the other hand, property that one spouse owned before the marriage may be considered separate. The same goes for gifts and inheritances. However, proving that a foreign asset is separate property can be tough, as these records are often kept in another language and under a different country’s laws.
The Hidden Assets Concern
California law says both spouses must fully disclose their finances during a divorce. However, when money and property are held in a foreign country, some spouses may try to hide them. This is one of the biggest risks in these types of cases.
There are several ways to uncover hidden assets, such as:
- Reviewing domestic bank records for payments sent abroad
- Hiring forensic accountants who know how to trace overseas money
- Working with legal professionals in a foreign country to obtain records
- Asking the court to order the other spouse to disclose everything under penalty of perjury
If a spouse is caught hiding assets, the court can impose penalties against them, which might include giving the other spouse a larger share of the marital estate.
Figuring Out What Foreign Assets Are Worth
Putting a dollar amount on international property can be relatively difficult as well, as real estate markets work differently in other countries, and businesses abroad may follow different financial rules. On top of that, currency exchange rates change over time, which can shift the total value of the estate in question.
Family law attorneys and courts often bring in expert appraisers who have experience in the specific country involved. This can add time and expense, but getting the numbers right matters when it comes to a fair split.
Enforcing Court Orders in Other Countries
A California judge can order that international assets be divided a certain way, but getting a foreign country to follow that order is a separate challenge. Not every nation will honor a U.S. family court ruling. In some cases, you may need to file new legal proceedings in the other country just to carry out the property division process.
Some treaties and agreements between countries can help with these proceedings. However, the rules change depending on where the property is located. Having a lawyer who has handled cross-border cases similar to yours before can make a real difference in whether the court’s orders are actually enforced.
Contact a California Divorce Attorney at Berenji Divorce & Family Law Group for a Consultation
If your divorce involves property outside the United States, it is important to act early and seek legal representation. The sooner foreign assets are found and documented, the better your chances of ending up with a fair result that protects your interests.
Contact a California divorce lawyer at Berenji Divorce & Family Law Group today to get started with your case. With a qualified legal advocate on your side, you can move forward with confidence and peace of mind.
For more information, contact our experienced [GEO] divorce lawyers at Berenji & Associates Divorce Lawyers by calling (310) 271-6290 to schedule a consultation.
We serve all through Los Angeles, Beverly Hills, Los Angeles County, and its surrounding areas. Visit any of our offices at:
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Los Angeles, CA 90013
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