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High Asset Divorce: What to Consider Before Filing for Divorce

by David Lederman
Apr 15, 2024
high asset divorce

If you are ending your marriage in California, you may want to become familiar with the divorce laws in the state. California is a community property state, which means all marital assets are jointly owned by the couple and are split 50/50 in a divorce. 

This can be a complicated situation for those who have amassed millions of dollars by owning a business or being a celebrity of sorts (actor, musician, athlete, etc.). Splitting half of your earnings with your spouse can be problematic in a number of ways. This is called a high asset divorce.

A high-asset divorce is one that has at least a few million dollars in assets. The standard used to be informally set at around $1 million, but nowadays, it is common for middle-class households to have $1 million in assets if you include their home and IRA accounts. 

As you can see, there is a lot at stake in a high asset divorce. A lot can go wrong, and you want to make sure you get your fair share. You need an experienced lawyer on your side to help, and that’s where The Law Offices of David M. Lederman comes in. Here is a look at what you need to know and what mistakes you need to avoid.

Considerations in a High Asset Divorce

  • Asset identification. You will need to identify and list all assets, including real estate properties, investments, business interests, retirement accounts, stocks, bonds, vehicles, jewelry, and art.
  • Valuation of assets. Determine the fair market value of each asset. This may require the assistance of financial experts, appraisers, and accountants.
  • Existence of prenuptial or postnuptial agreements. Is there a prenuptial or postnuptial agreement in place? If so, review it regarding the distribution of assets in the event of divorce.
  • Spousal support. Assess whether one spouse is entitled to spousal support based on the disparity of incom