Divorce is never easy, but when significant wealth is involved, the process becomes even more complex. A high-asset divorce in Orange County requires the work of numerous professionals, including accountants and attorneys, to help clients protect the assets they’ve worked hard to acquire.
At Pinkham & Associates, we help our clients with everything from dividing business assets to addressing tax implications and support obligations. We can help you protect your financial future and your peace of mind.
Unique Challenges to High-Asset Divorces
Divorce laws apply uniformly across California, but wealthy couples face specific challenges when these rules are applied to their situations.
- Property division. Under California law, marital property is distributed 50/50 in a divorce unless a prenuptial agreement dictates otherwise. Property can include investments, retirement accounts, inheritances, and real estate, making it difficult to determine what is and is not owed to each spouse.
- Valuation of assets. Some assets, like intellectual property, require professional valuation before distribution. It is not uncommon for disputes to arise regarding the value of these types of assets, which can lengthen the divorce process.
- Support calculations. If one spouse has more earning power than the other, the calculations for alimony and child support may be harder to determine. A court may look at additional income (like bonuses and profit sharing) when making these calculations.
- Hidden assets. If one spouse suspects the other of hiding assets, a forensic accounting team may be necessary to trace transactions and uncover the assets so that they may be properly distributed.
These challenges make high-asset divorce more difficult than the average case, which is why having an experienced legal team and financial guidance is so important in achieving a fair outcome.
How to Protect Wealth During a Divorce
To protect your wealth in a high-asset divorce, you’ll need a team of people to help you strategize and plan. At Pinkham & Associates, we implement our 25+ years of experience facilitating high-asset divorces in Orange County to help you safeguard your financial interests. When we handle your divorce, we take steps to make the process as efficient as possible while making sure the wealth you’ve worked hard to build is protected.
Here are some of the methods we employ.
Early Collection of Financial Documents
One of the most important ways to protect your wealth is to document it. Collecting important financial documents early may also help expedite the resolution process if a dispute were to arise. In addition, having clear proof of your finances is a strong protection against disputes.
We help you collect your documents early to help lay the foundation of a strong case.
Implementation of Business Protection Strategies
Business owners may face complications during divorce proceedings. It will be important to determine whether or not the business will be considered community or separate property. At Pinkham & Associates, we can help you with documents like Buy-Sell Agreements and Shareholder documents to help protect your business and its assets.
Prenuptial and Postnuptial Agreements
A prenuptial agreement is one of the best ways to protect your assets before you enter into marriage. If you entered into marriage without one, it isn’t too late. Prenuptial agreements are useful for detailing how assets will be divided in the event of a divorce after a couple is already married.
Postnuptial agreements are also a wise choice if your finances or assets change dramatically after you are married.
Use of Financial Experts
Pinkham & Associates has been protecting the assets of our clients for over 25 years. During this time, we’ve built an extensive network of professionals to help our clients with different facets of their divorces. From accountants to appraisers, we know and trust many local experts to help with valuations and appraisals.
Tax Protection and Retirement Planning
Dividing stock options, pensions, and retirement accounts requires careful structuring to avoid unnecessary tax burdens. A Qualified Domestic Relations Order (QRDO) may be needed for retirement accounts, even if your divorce decree says retirement assets will be divided.
In addition to these strategies, we also recognize that California’s community property laws may pose a real risk to your wealth during a divorce proceeding.
Protection with Community Property Rules
California is a community property state. This means all property acquired after a couple has married is considered community property and is subject to equal distribution. Issues can arise that blur the lines between what is personal and what is community property.
For instance, if one spouse receives an inheritance before the marriage, but uses that money to purchase a home after the marriage, it can be difficult to determine how the property should now be divided. Strong legal counsel can draw clear lines by helping you provide documentation that traces your money back to you.
The Role of Legal Counsel
Many of our clients are do-it-themselves, self-made business persons. Their success lies in their can-do approach and business savvy. Attempting to go it alone in a divorce proceeding, however, is never a good idea and can put every asset you own at risk.
By hiring an experienced high-asset divorce lawyer, you can:
- Be assured that all marital assets are valued properly
- Define the lines between separate and community property
- Negotiate fair spousal and child support
- Rely on financial experts that our firm knows and trusts to support your case
- Get representation during a trial if it is necessary
At Pinkham & Associates, we give every client the same high-level representation and counsel we would want for ourselves and our loved ones.
What to Do Now
If you find yourself at the beginning of a high-asset divorce, or if you feel that a divorce may be looming on the horizon, there are a few steps to take to protect your assets.
- Do not hide or transfer assets.
- Gather your financial records and documents.
- Separate your business and personal expenses.
- Call our office now to discuss your case and plan for the future.
It’s never too early or too late to contact our office to get the help you need. No matter what stage of the process you are in, we can offer services to help protect your assets and secure your financial future.
