Divorce is rarely simple in any circumstance. However, when significant wealth and complex financial holdings are involved, the process becomes even more challenging. Contact Berenji & Associates Divorce Lawyers at (310) 271-6290 to set up a consultation.
High-net-worth divorces often raise unique questions about property division, spousal support, and protecting long-term financial stability.
We have over 45 years of combined experience helping clients in Los Angeles, California, navigate these sensitive cases. Below, we’ve answered some of the most common questions people have when facing a high-net-worth divorce.
Why Hire Berenji & Associates to Help With My High-Net-Worth Divorce in Los Angeles, CA?
Choosing the right lawyer is one of the most important decisions you’ll make in a high-net-worth divorce case. At Berenji & Associates Divorce Lawyers, we bring decades of combined experience and a track record of success in complex cases.
Clients hire our Los Angeles high-net-worth divorce lawyers because we:
- Have extensive knowledge of California’s community property laws
- Work closely with financial experts to ensure proper valuation of assets
- Provide personalized strategies tailored to your goals
- Have significant courtroom experience if litigation becomes necessary
With so much at stake, you deserve a team that understands both the legal and financial complexities of your divorce. Contact our Los Angeles divorce lawyers today to schedule an initial consultation.
How Is Property Divided in a High-Net-Worth Divorce in California?
California is a community property state. This means that most assets and debts acquired during the marriage belong equally to both spouses, regardless of who earned the income or whose name is on the title. During a divorce, community property is typically divided 50/50.
In high-net-worth divorces, property division can become complicated because assets may include:
- Multiple homes or investment properties
- Business interests and partnerships
- Stocks, bonds, and other investments
- Retirement accounts and pensions
- Luxury items such as jewelry, art, and vehicles
Determining what is community property versus separate property can be a key issue. Separate property, such as assets owned before marriage or certain inheritances and gifts, generally remains with the original owner.
However, commingling (mixing separate and community funds) can blur the lines. A skilled family law attorney can help trace the source of funds and protect what rightfully belongs to you.
How Are Businesses Handled?
If one or both spouses own a business, special care must be taken to properly value and divide it.
The process usually involves working with financial experts, such as forensic accountants, to:
- Determine the fair market value of the business
- Review business records, profits, and debts
- Assess whether the business is separate property or community property (or a mix of both)
Depending on the circumstances, one spouse may keep the business and buy out the other’s interest, or the business may be sold with the proceeds divided. In some cases, spouses may continue to co-own the business after divorce, though this is less common.
Will I Have to Pay or Receive Spousal Support in a Los Angeles High-Net-Worth Divorce?
Spousal support (also called alimony) is often a central issue in high-net-worth divorces.
California courts consider several factors when deciding whether to award support, including:
- The length of the marriage
- Each spouse’s income and earning capacity
- The standard of living established during the marriage
- Contributions to the household, including child-rearing and supporting the other spouse’s career
- Age and health of both spouses
In long-term marriages (over 10 years), courts may order spousal support for an extended period. In marriages of shorter duration, support may be limited to a time frame considered reasonable for the receiving spouse to become self-sufficient.
What Role Do Prenuptial and Postnuptial Agreements Play?
Many high-net-worth individuals enter into prenuptial (before marriage) or postnuptial (after marriage) agreements to protect their assets. These agreements can outline how property, businesses, and debts will be divided in the event of divorce.
If the agreement is valid and enforceable under California law, the court will typically follow its terms. However, prenups and postnups can sometimes be challenged. For example, if one spouse signed under duress, was not fully informed of the other’s financial situation, or lacked proper legal representation, the agreement may be deemed unenforceable.
What Happens to Retirement Accounts and Investments?
Retirement savings and investment portfolios are often some of the most valuable assets in a high-net-worth divorce. Under California law, the portion of retirement accounts earned during the marriage is usually community property and must be divided.
This can include:
- 401(k) plans
- Pensions
- IRAs
- Stock options and restricted stock units (RSUs)
Dividing these assets may require a Qualified Domestic Relations Order (QDRO) to avoid tax penalties and ensure compliance with federal and state regulations.
Contact Our Los Angeles High-Net-Worth Divorce Lawyers to Schedule a Consultation
If you’re facing a high-net-worth divorce in Los Angeles, CA, don’t leave your future to chance. Berenji & Associates Divorce Lawyers can answer any remaining questions you might have and advocate for your best interests every step of the way.
Call our law offices today to schedule an initial consultation. Our Los Angeles high-net-worth divorce attorneys are ready to get to work for you as soon as you are.