Protecting Your Financial Future: Dividing Complex Assets in a California Divorce
Posted in Divorce,High Asset Divorce,Property Division on September 26, 2024
The end of a marriage can be overwhelming and complicated as it is. However, when you share complex assets, dividing your marital estate can be that much more difficult. It is not uncommon for these negotiations to become contentious, with one spouse arguing that the other is attempting to take advantage of them.
Fortunately, there is a way you can protect your wealth and secure your fair share of the marital assets. With help from a reputable divorce lawyer from Ratzer Dobis, you can safeguard your finances and start to rebuild your life. Here is more about how California estates are distributed in divorce and what to expect as you work to divide your marital assets.
Table of Contents
Dividing Marital Property When You Divorce in California
How to Settle Complex Marital Assets
Distributing Complex Finances and Assets
Distribution of The Marital Home
How We Determine the Actual Value of Complex Marital Assets
Turn To Our Compassionate Divorce Attorneys for Help Protecting Your Wealth
Dividing Marital Property When You Divorce in California
California is a community property state as described under CA Fam Code § 760 and IRS Code 25.18.1.2.3. Although many states have implemented equitable distribution laws that allow marital property to be divided fairly, in California, state law requires community property distribution. This means instead of dividing the marital estate fairly, it will be divided equally between both spouses. Of course, figuring out how to split marital property can be incredibly difficult, especially when both spouses make claims to specific property, or assets, or attempt to avoid debts.
How to Settle Complex Marital Assets
When you begin the divorce process as a high-net-worth couple or a couple with complex marital assets, separating property can be particularly contentious. Spouses may argue over who is entitled to which type of property, whether a property should be sold and the profits split, or attempt to hide certain types of assets.
Even though the community property approach requires assets to be divided 50/50, couples can also work together to separate complex marital assets. This may be in your best interests, as failure to make these important decisions with your soon-to-be ex means the decision will be made by the judge presiding over your case if a compromise cannot be reached.
You want to avoid this at all costs, as the judge does not know you, your family, or your financial goals or plans. For this reason, a good place to start when settling complex marital assets is by obtaining a thorough evaluation of all marital assets and property. This way, you can start to think about which assets you want to retain, which you are comfortable ceding to your spouse, and which areas you may or may not be willing to compromise.
Distributing Complex Finances and Assets
You may be wondering which types of assets and finances are considered complex. When you and your spouse own multiple real estate properties, businesses, or investments, it can be more difficult to figure out how these assets should be split equally. Some of the other types of assets that will need to be discussed as you work towards a fair property settlement agreement include:
- Your marital home
- Your shared investment portfolio
- Your shared stock options
- Vacation homes
- Your IRA, 401(k), or other retirement savings accounts
- Collectible items such as artwork
- Business interests
- Valuable cars or jewelry
Distribution of The Marital Home
One of the most complex assets to divide when you divorce is the marital home. The easiest option is to sell the home and split the proceeds equally between both spouses. However, if one spouse contributed more to purchase the home, there may be some question as to whether splitting the proceeds would be considered an equal division.
In some instances, the court system can allow one spouse to buy out the other which means the spouse who buys the home will be the sole owner of the home. They would be responsible for all home maintenance and mortgage responsibilities. When your shared home is considered separate property, things can get even more complex.
For instance, if one spouse bought the home before the couple got married or one spouse contributed more to the mortgage or made improvements to the home, it may be more difficult to determine whether spouses should split the home equally. In cases like these, court systems may order the person who purchased the home to provide compensation to the spouse who made contributions to the mortgage or home improvements according to the California Courts’ property control laws.
How We Determine the Actual Value of Complex Marital Assets
To determine the actual value of complex marital assets, we are going to need to work with professionals. You can expect your divorce lawyer with Ratzer Dobis to hire accountants, appraisers, and qualified experts to determine the value of your real estate, investment portfolio, retirement accounts, businesses, and other complex assets.
We can also help you plan for any possible tax implications that may come when certain assets are divided in your divorce. You need to understand the big picture when it comes to your marital assets and property and consider every possible option when it comes to the distribution of these assets. This way, you can resolve your divorce as amicably as possible.
Turn To Our Compassionate Divorce Attorneys for Help Protecting Your Wealth
When everything you have worked for is on the line, protecting your wealth is a top priority. The end of your marriage does not mean you need to start over financially. You are entitled to your fair share of the marital estate. Do not let your soon-to-be ex-spouse take advantage of you. Trust in a high-powered divorce lawyer from Ratzer Dobis when you are ready to advocate for your rights.
Our team will hire the necessary financial experts and other specialists to identify any hidden assets and accounts and build a powerful case in your favor. We will do everything possible to avoid going to trial, but we are not afraid to bring your ex-spouse to court if they are attempting to deny you the complex assets you are entitled to. Fill out our secured contact form or call our office to schedule your confidential consultation as soon as today.