Divorce can feel overwhelming, especially when you have spent years building financial security for yourself and your family. And if you are facing a high-net-worth divorce that involves substantial assets, business interests, or multiple properties, the process can become even more complicated. You may worry about protecting your financial future, fairly dividing valuable assets, and maintaining your standard of living.
At Barnholtz & Kugler, we understand what is at stake. Our family law attorneys have multiple decades of combined experience and provide the exceptional representation that makes us among the best at what we do. We help clients navigate complex divorces with compassion and a clear strategy.
What Is a High-Net-Worth Divorce in California?
A high-net-worth dissolution generally involves spouses with:
- Substantial income,
- Valuable property, or
- Complicated financial holdings.
However, California law does not establish a specific dollar amount that qualifies as a high-net-worth divorce. Divorces involving hundreds of thousands or millions of dollars in assets or income may be considered high-net-worth. Still, the complexity of your finances matters as much as their total value.
For example, a couple whose only major asset is a multimillion-dollar home may face a relatively straightforward property division. Another couple with several properties or ownership interests may face a much more complicated divorce, even if their total wealth is similar.
When asking, How much is high net worth, remember that California divorce procedures are affected by certain financial thresholds, including the following:
- You jointly own more than $57,000 in property. You cannot use California’s simplified summary divorce process.
- You jointly earn $180,000 in annual income (or $15,000 per month). You are likely in the highest bracket under California’s child support guidelines. However, courts may consider deviations when a parent has extraordinarily high income, and the guideline amount exceeds the children’s needs.
These thresholds do not define what constitutes a high-net-worth divorce. Instead, they illustrate how financial circumstances can affect your available options and potential outcomes.
How Are Assets and Debts Divided in a California Divorce?
California follows community property laws. Under the Family Code, courts generally divide the community estate equally, unless the spouses agree otherwise or a legal exception applies. However, equal division does not mean splitting every asset in half—the court may dole out whole assets to each spouse to achieve a relatively equal split.
Community Property vs. Separate Property
Community property generally includes assets and earnings acquired during marriage. These might include:
- Homes,
- Cars,
- Retirement savings,
- Investment accounts, and
- Business interests.
Separate property is typically not touched during a divorce and generally includes:
- Assets owned before marriage,
- Inheritances, and
- Gifts received individually.
The difference between properties becomes complicated when spouses combine separate and community funds or use marital earnings to increase the value of separate property.
Dividing Valuable Assets
A huge part of dividing assets in any divorce is valuing each property. In general, courts value the property as closely as possible to a divorce trial, but there are exceptions to this timing. To help ensure the valuation is accurate, spouses may have to present financial documents, reports, and expert testimony.
Courts may award a particular community asset to one spouse when economic circumstances justify doing so, provided the overall division remains substantially equal. For example, one spouse might retain a business while the other receives investment accounts or real estate of comparable value. A court might take this approach if splitting the asset in half would negatively affect it or change its nature.
Dividing Debts
Behind many major assets lie major debts. California divorce law addresses debts accumulated before, during, and after marriage. And like community assets, community debts (acquired during the marriage) are often split 50/50. In a high-net-worth divorce, debts may include:
- Business loans,
- Mortgages,
- Investment-related obligations, and
- Personal guarantees.
Careful financial analysis helps prevent either spouse from accepting an unfair share of the financial burden in a divorce decree or high-net-worth divorce settlements.
Spousal Support and Lifestyle
Spousal support is not a given in every divorce case, but the court may order support if:
- It is necessary to maintain a spouse’s standard of living,
- The receiving spouse made contributions to the other spouse or needs support, and
- The paying spouse has the ability to make the payment.
Support may come up more often in high-net-worth divorces, especially when one spouse earns or owns significantly more than the other. High-income spouses may disagree about the appropriate amount and duration of spousal support, so the help of a knowledgeable attorney can be crucial in these cases.
What Do High-Net-Worth Divorce Settlements Typically Look Like?
Divorce settlements involving significant assets vary considerably because no two financial situations are identical. Some couples negotiate agreements that allow one spouse to retain real estate, retirement assets, or investments. Others agree to sell certain properties and divide the proceeds.
A settlement might also address:
- Spousal support,
- Child support,
- Outstanding debts, and
- The timing of asset transfers.
There is no standard settlement amount or guaranteed percentage of total wealth that either spouse receives, and spouses can deviate from splitting assets (or their value) in half if their agreement is enforceable.
A court is more likely to enforce an agreement if:
- The agreement is fair,
- The agreement is voluntary,
- The spouses have fully disclosed their assets and liabilities to each other (or have properly waived the right to disclosure), and
- The spouses have had the opportunity to seek counsel about the agreement before signing it.
The most effective settlement is one that protects your legal rights while providing a practical foundation for your financial future.
How Can a Divorce Attorney Help?
When substantial assets are involved, small financial oversights can have lasting consequences. An experienced family law attorney can help you:
- Understand your rights,
- Evaluate financial disclosures,
- Identify potential property disputes, and
- Develop a settlement strategy.
Your attorney may also coordinate with financial professionals to address business valuations, complex investments, and potential tax consequences.
At Barnholtz & Kugler, we focus on understanding your priorities. Whether you want to preserve your business, protect your investments, or reach a fair settlement without unnecessary conflict, we can help you evaluate your options and achieve your goals.
Safeguard Your Financial Future With Barnholtz & Kugler
A high-net-worth divorce can affect everything you have worked to build. You deserve knowledgeable legal guidance that recognizes both the financial and emotional importance of your decisions. With over 60 years of combined experience, Barnholtz & Kugler offers the exceptional advocacy, personalized attention, and compassionate representation that set our firm apart. Contact us by phone or online today to schedule a consultation, and let our experienced California family law attorneys help you protect your interests.