High Net Worth Orange County Divorce

High Net Worth Orange County Divorce

For individuals with high levels of wealth and valued assets, undergoing a divorce can offer many unique challenges. While every divorce is subject to a property division at some point during the proceedings, cases that involve high-end assets can be much more complex and time-consuming, leaving more opportunities for contentions to arise. In these situations, it is vital that you hire a team of Orange County high net worth divorce lawyers to protect your interests.

At Minyard Morris, we understand and see just how hard you have worked to own the assets and property you do, and we want to do whatever is in our power to help you protect those assets from an Orange County divorce. It is valid to be concerned over losing large portions of your wealth and we have the experience required to advocate for your rights and interests and to fiercely pursue the protection of your hard-earned wealth and legacy in a divorce case.

Due to the nature of what is at stake in your high net worth divorce, it is essential to find not just any lawyer but the right lawyer. At Minyard Morris, we pride ourselves on offering top-tier legal care through a litany of family law matters, including divorces with extreme levels of wealth, property, or business interests. You can trust our team to dedicate their time and energy to aggressively advocating for your rights above all the rest.

Defining a High-Asset Divorce in Orange County

At its core, a high-asset divorce, otherwise known as an executive divorce, can be much more challenging than an average divorce in Orange County. One of the top requirements of a high-asset divorce is that of careful and strategic financial planning. It is vital that, in these citations, an attorney is brought on who understands the finances you are currently dealing with and can work to protect assets such as real estate, large inheritances, or investment interests.

If you are wondering whether or not your divorce falls under the category of a high-asset divorce, the following aspects are typically involved in these cases:

• Interests of a business nature. If the divorcing couple owns a business or has a stake in a business, this can add a layer of complexity to their divorce case. Whether the business in question is that of a partnership, larger corporation, or is family-owned and operated, the courts will need to determine the value of these businesses before it can be subject to property division.
• Owning multiple properties. If the couple owns various properties between them, their divorce will most likely become classified as a high net worth divorce. These properties can include multiple homes or vacation homes and rental properties. When these properties span a wide range of locations, such as different states or even different countries, it can add to the complications involved in their divorce case.
• Owning stocks and bonds. When a divorcing couple owns several bonds, stocks, or other securities of a financial nature, it can complicate the divorce case overall. Because the asset’s value may fluctuate, it can make it difficult to value the asset and therefore, determine how to correctly split these assets according to California property division law.
• Having collectibles of a high value. Often, marriages that are considered to be high assets or high net worth also own many rare or highly valuable items or collections. These collections can include items such as art, cars, or antiques. Before the property can be divided, these items will need to be appraised, which can further complicate the divorce proceedings.

Many of the over 600 Orange County divorce lawyers purport to handle “high net worth “and “complex” divorces. Rarely do many of these lawyers actually handle these vaguely defined divorces, and when they do, there is a question as to the quality of representation. In truth, many divorces involve at least a few unique or rare issues. Complex issues aren’t limited to the top 1% or the wealthy. Financial issues like contributions to an IRA both before and after the date of the marriage, the use of one spouse’s assets acquired before the date of marriage to buy a joint tenancy home or the commingling of an inheritance or personal injury settlement with community property are not unusual and impact many divorces. In a divorce, you want to protect your separate property money and not let it be used to fund needless litigation or be awarded to your spouse. You need a law firm that has the experience to understand the complexities of your case and the desire to facilitate an efficient and cost effective resolution.

Business owners, professionals, executives, stockbrokers, wealthy advisors and entrepreneurs face unique issues during a divorce that require a skilled divorce lawyer with specific experience in handling complex and high net worth divorces. If you find yourself in this situation, seek counsel with an Orange County divorce firm that has the experience and bandwidth to resolve your case. This type of divorce is more akin to a financial transaction than what is thought of as a “divorce.” Divorcing parties with significant assets are, essentially, dividing the assets of a partnership. Dividing significant assets with complexities is far different than selling a house and dividing the sales proceeds and dividing an IRA.

With 20 divorce lawyers, our firm’s practice is limited to cases filed in Orange County. Minyard Morris has been in business in Orange County for over 48 years and its lawyers have combined experience of over 350 years. We provide our clients, in a high net worth divorce or in a more traditional divorce, with a comprehensive approach in a collaborative culture. We combine our unparalleled level of experience and knowledge when representing our clients. Our focus, together with our team approach, allows each of our Orange County divorce attorneys to bring an effective, creative and cost-effective approach to the resolution of complex issues for high-level professionals, executives, stockbrokers/wealth advisors, business owners and entrepreneurs.

High net worth divorces add a number of unique complexities to an Orange County family matter that do not exist in the more traditional divorce. Lawyers with different skills, experiences and training are needed for different types of cases. You would not hire a personal injury lawyer to handle a corporate transaction or vice versa. This exact issue exists in family law. A lawyer who is fully competent to handle a child support or child custody case may not be competent to handle the issues that exist in a high net worth divorce. The issues that exist in a high net worth divorce dictate retaining a divorce lawyer who is experienced with the unique complex issues. You don’t want to pay to educate a lawyer in a new field and you don’t want your lawyer to “practice” on your case. Having “a” lawyer is not the same as having the “right” lawyer. All lawyers are not created equal. Don’t make the mistake of believing that as long as you have ‘a’ lawyer your rights will be protected.

How Assets Are Typically Divided in a California Divorce

The state of California operates as a community property state, meaning that all assets shared within the marriage are subject to a 50/50 split in the case of a divorce. Shared property, or marital property, includes all assets and debts that were earned, grown, obtained, or developed while the marriage was legal and are subject to equitable distribution.

The following is a list of the type of assets that may exist in a high net worth divorce:

• Valuation of a business interests
• Reasonable compensation
• Allocation of the increase in value of a separate property business during the marriage between community and separate property
• Personal goodwill
• Entity goodwill
• Structured annuities
• Family limited partnerships
• Pre-nuptial agreements
• Post-nuptial agreements
• Buy sell agreements and spousal consents
• Misappropriation
• Breach of fiduciary duties
• Carried interest
• Valuation and allocation of complex alternative investments
• Future capital calls
• Tracing of inherited funds
• Complex reimbursements of separate property invested into community property
• Valuation of intellectual property
• Analysis of executive or deferred compensation
• Characterization and allocation of stock options, RSUs, profits interests or related benefits
• Non-qualified executive compensation
• Complex tax issues
• Tax losses
• Tax basis related issues
• Phantom income
• Revocable family trusts
• Irrevocable trusts
• Irrevocable life insurance trusts
• Donor advised funds
• Qualified primary residential trusts
• Charitable remainder trusts
• Asset protection trusts
• Community property agreements
• Transmutation issues re: separate vs. Community property
• Commingling of separate and community property
• Tracing of separate property
• Premium financed life insurance
• Coverage issues
• Determination of controllable cashflow
• Imputation of income on assets
• Imputation of income on underemployed or unemployed spouse
• High earner exception relative to guideline child support
• Appraisal and valuation of yachts and aircraft
• Appraisal of fine art and antiques

In addition to these assets or debts, it can be helpful to understand what items are not required to pass through an equitable division. Any property that was obtained before marriage by either spouse and was not used to grow, develop, or obtain marital property is not subject to community property laws.

These items of property could include any vehicles purchased and owned before the marriage, student debt, or anything that was inherited or gifted to one individual, even if the marriage was currently valid.

Entrepreneurs, business owners, professionals, executives and stockbrokers/wealthy advisors not only need a skilled divorce lawyer, they also need the advice of other independent experts, such as forensic accountants, real estate appraisers, estate planning experts, tax professionals and potentially others. With experience representing clients in high net worth divorces, our team of 20 divorce lawyers knows which experts to retain.

Common Issues Dealt With an Orange County High-Asset Divorce

Outside of property division, there are several other issues that individuals facing a high-asset divorce can deal with. In these situations, the protection and advocacy of an Orange County divorce lawyer is of paramount importance. At Minyard Morris, we can assist clients facing the following aspects of a high-asset divorce:

• Privacy issues. In cases of high net worth divorces, having a legal team on your side who can work to maintain your personal privacy throughout the duration of your case is essential. At Minyard Morris, our professional and prudent attorneys can work to protect you from the media, potential business competitors, and others who may threaten your privacy during such a challenging time.
• Child support or custody disputes. Many divorces include issues of child support or child custody, and they can be challenging issues when not involved in high-asset cases. Though parents in these situations might not be as concerned over the financial welfare of their children, as they can each adequately meet the needs of the child on their own, there can be other factors to consider, including visitation rights and physical custody.

FAQs

Q: How Much Do You Pay a Divorce Lawyer in California?

A: It can prove difficult to say how much it may cost to hire an attorney to help you with a high-net-worth divorce because there are several elements involved in these cases that can impact the final costs. These elements can include the overall complexity of a case, such as the number and value of the assets involved and the experience of your chosen representation.

Q: How Should I Prepare for a High Net Worth Divorce?

A: Planning and preparing for your high net worth divorce can be a vital step in the process. It is important to begin thinking about prioritization in regard to your income, expenses, and assets, along with considering certain solutions that can allow you to achieve your desired goals. The correct way to accomplish both of these things is to consult with an attorney who understands these cases and can work to protect your interests.

Q: What Mistakes Should Be Avoided in a High-Asset Divorce?

A: There are many mistakes that can be made in a high-asset divorce that have the potential to harm your side in the case. The most common mistakes can include hiding assets during the process of property division and hiding assets before the divorce in times of marital distress. Hiring an attorney can help ensure all hidden assets are uncovered and subject to California’s property laws.

Q: Will My Spouse Be Entitled to Alimony Following a Divorce?

A: For individuals who hold vast amounts of wealth, the thought of paying for spousal support, or alimony, can be concerning. You have worked hard to achieve this wealth, so it is understandable to worry that your soon-to-be ex will have access to it even after you are divorced. If you are the higher-earning spouse or the primary source of marital income, it is important to work with an attorney who can develop a plan to avoid certain alimony liability.

Compare and Contrast Law Firms

How does a non-lawyer know which Orange County divorce lawyer to retain? Analyzing a law firm’s website should be a part of the process. A law firm that has a focus on complex or high net worth Orange County divorces is most likely a law firm with significant bandwidth, significant community involvement and believes attention to detail is important. That law firm is appropriately assertive, but does not attempt to portray themselves as “junk yard dog lawyers”. A law firm will design their website to convey a specific message to clients. Use our website to learn more about who we are and compare us to other Orange County divorce lawyers. When you are ready to have your case evaluated, contact us for a comprehensive and confidential consultation.