Ending a marriage requires you and your ex to divide the assets that you have amassed while you were married. When you’re dealing with a high-asset divorce, you’ll have to think about a lot more than just your family home and a joint bank account.
High-asset marriages often feature investment portfolios, rental properties, business interests, retirement accounts, stock options, cryptocurrency, collectibles, vehicles and intellectual property. Because there are so many assets that might need to be addressed during divorce, it’s often best to have a list of assets so both parties know what has to be split.
What property is part of the division process?
California is a community property state, which means that nearly all property that was acquired during a marriage has to be divided in the event of divorce. Property that was owned before the marriage or that was given via an inheritance or gift during the marriage are considered separate property and don’t generally have to be divided.
Yet, in many California high-asset divorces, the line between marital property and separate property may blur during a marriage. For example, a home purchased before the marriage may have been improved with marital funds or refinanced. Such divorce scenarios often require proper documentation to ensure the property is categorized properly.
Determining the category of any particular property is necessary before any division takes place. Having a written account of assets and debts is important so that they can be evaluated one at time and with a wide lens.
It can also serve as a starting point for splitting up one’s marital estate, but this entire process can be challenging. Working with a legal professional who’s familiar with high-asset divorces is critical so they can provide you with the options you have available to you.