Los Angeles, California High Net Worth Divorce Attorneys
In California, the law mandates that community marital assets be divided equally between the spouses. Community property includes equity earned on homes, businesses, investments, or pension plans. Couples may agree to apportion marital assets as they see fit. Typically, the law envisions that each spouse receive an equal portion of the community property. In high net worth divorces, the division of community property may be complicated, especially if one or both spouses owns a closely held business, rights to intellectual property, investments in real estate, or is a partner in a limited partnership. Consequently, high net worth divorces often involve CPAs, forensic accountants, real estate appraisers, and business valuators. Disputes over the market value of property, investments, or company assets may affect not only the division of marital property, but the amount of support payments as well.
For more information regarding the division of marital property in high net worth divorce cases, contact Phillips, Lerner, Lauzon & Jamra, LLP to schedule a consultation and discuss your case.
Assets, Investments, and Closely Held Businesses
Our family law attorneys advise, counsel, and represent clients on the following issues in high net worth divorce cases:
- Business valuations
- Moore-Marsden calculations
- Cash-outs
- Reservation of jurisdiction
- Qualified Domestic Relations Orders
- Stock portfolios
- Real estate investments
High Asset Divorce Cases and Business Valuations
When determining a business' value, the use of hypothetical situations, market conditions, and assumptions about where the real value of a company lies often lead to disagreements in court. Further, allegations regarding hidden assets or off-shore bank accounts may introduce additional complications.
Our attorneys, along with forensic accountants, business valuation experts, etc. carefully review and compare business valuations and financial documents to ensure our clients' interests are protected. Failure to value a business accurately could materially impact the division of marital assets and support payments.
Executive Pension Plans and the Division of Marital Assets
Pensions are subject to division in a divorce as well. In the state of California, there are two options available for dividing pension plans:
- Reservation of Jurisdiction: Once a person retires, his or her ex-spouse is entitled to receive a percentage of each retirement check. To determine the community property amount, the law requires that the number of years a couple was married be divided by the number of years a spouse contributed to a pension plan. For instance, if you contributed 20 years to a pension and were married 10 of those years, the community property share of your pension would be 10 divided by 20, or 50%. Of this 50%, an equal share would be 25% - 1/2 of 50%. Consequently, your spouse would be entitled to 25% of each pension check you receive. One option to consider is rolling over the pension proceeds to an IRA.
Contact Phillips, Lerner, Lauzon & Jamra, LLP
If you have questions or concerns regarding the division of marital assets in high net worth divorce cases, contact our family law attorneys today to schedule a confidential consultation.