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High-net-worth divorces can be emotionally challenging, but they don’t have to be financially devastating. An experienced divorce attorney would not only be able to help you with the filings and other processes, but also help ensure your financial portfolio is protected.
At Pinkham & Associates, our team has decades of experience representing high-net-worth individuals in their divorce cases. Together, we can help you navigate your divorce proceedings smoothly and safeguard your assets, so you can have peace of mind knowing your interests are protected.
Why Should I Hire a High-Asset Divorce Attorney?
Separations can be emotionally taxing. Sometimes, we end up making decisions that hurt our executive divorce proceeding. An experienced attorney can help approach your divorce with a clear strategy, enabling you to make informed decisions about your bank accounts, properties, and investments so you may achieve a fair and equitable division of your assets.
Legally Establish the Divorce
One of the best ways to protect the assets you currently own – and any assets you are soon to acquire – is to file for a legal separation as soon as possible. Unlike a divorce, a legal separation does not dissolve the marriage, but it does allow you to better divide community assets and protect any newly acquired assets to help ensure they remain your separate property.
Legal separation is typically faster and less costly than a divorce. It is easier to define parenting roles and divide assets before the divorce is final. Additionally, being legally separated entitles you and your spouse to continue shared benefits, such as health insurance or military entitlements. For these reasons, many experienced attorneys suggest a legal separation as soon as possible.
Open Accounts in Your Name Only
One of the most common problems divorcing partners face is the distribution of liquid assets. For example, if a spouse drains a joint bank account, it can take time to retrieve funds that were legally yours. To protect your assets, consider opening a new bank account solely in your name. Once you’ve opened a new account, you can then divide the funds in the joint account equally. Money in a joint bank account can then be divided in half. You might also want to redirect any direct deposits from your employer to your new bank account and work with your attorney on the next steps for fully separating your finances.
Identify and Protect Your Assets
It is not uncommon to underestimate your net worth or forget about some of the assets you own. Your legal team and your accountant can assist you in compiling your balances across all accounts, including:
- Checking and saving accounts
- 401k retirement plans
- Credit cards
- Investments (stocks, bonds, or alternative investments)
- Properties (including rentals and timeshares, vacation packages, and more)
When you work with Pinkham & Associates, we will help ensure you do not overlook any of the assets you own, whether individually or mutually. Note that there are penalties for hiding assets in a divorce, including perjury and up to four years of jail time, so you want to make sure you disclose all of your assets during divorce. Hiding assets will also cost you credibility with the judge and result in excess time and court costs.
Get Copies of All Financial Statements
Obtain copies of your financial statements as soon as possible. If your accountant does not have access to these records, then you will need to acquire them on your own. Specifically, you will need copies of:
- Bank statements
- Tax returns
- Mortgage statements
- Property deeds
- Employment benefits
- Business valuations
- Life insurance policies
- Health insurance policies
Your California divorce law firm can help determine how many months of records you will need, and whether you need to subpoena any records you may otherwise have difficulty obtaining.
Freeze All Joint Bank Accounts
Freezing joint accounts protects both you and your spouse. After you separate, you could still be held responsible for your spouse’s financial decisions, including any debt they may incur. Freezing joint credit card accounts, bank accounts, and any other joint assets ensures that neither party can make a financial decision that could jeopardize the other person’s interest.
After the accounts have been frozen, you may then agree to split debts evenly and open new accounts in your name – this way, you would have more autonomy over your finances.
How to Protect Your Money During Divorce: FAQs
How Do You Protect Your Savings During a Divorce?
Freezing joint accounts (like savings accounts) can protect your assets until they are ready to be legally divided. You can also freeze retirement accounts and other investments that you own jointly so that neither spouse has access to draw funds until they have legally been rendered their own.
How Can I Keep the House in a Divorce?
California’s community property law dictates that the house you and your spouse share will need to be divided equally in the divorce. If you would prefer to keep your house, this might mean buying your share of the property from your spouse. A high net-worth divorce lawyer can help you explore your options.
Can I Still Protect My Assets if I Never Signed a Prenup?
If you do not have a prenuptial agreement, you can speak to your legal team about the possibility and value of setting up a limited liability company (LLC) to protect individual assets while the division of property is in progress. If you already have an LLC, it is important to understand how an LLC is treated in a divorce.
Because California is a community property state, all assets (including businesses) owned by a couple will be divided in half. If you have an LLC that you acquired during your marriage, it may be subject to equal distribution. However, if you owned the LLC before your marriage, it is possible that a court could view it as community property. This is why it is important to have an experienced attorney on your side to help you establish proof that your business is solely yours.
Looking For an Experienced Orange County Divorce Attorney? Pinkham & Associates Can Help
Navigating the nuances of a high-asset divorce can be difficult, stressful, and take more time than you expect. However, with the direction and counsel of an experienced legal team, you can take more control of your assets and allow your divorce proceedings to be as efficient as possible. Contact us today to discuss your situation and learn how we can help.
