In wealth management circles, $5 million in liquid assets is generally considered to define the low end of the very high net worth spectrum. California has the largest population of very high net worth people in the country. Of the roughly 80,000 of them who call California home, only 200 or so are billionaires. And unless they have uncommonly simple estates, i.e. devoid of stock options, multiple privately held businesses, or a high conflict custody dispute among other things, they probably all need a high asset divorce lawyer.
Why is that? As a respected and experienced high net worth divorce lawyer, Amy Laughlin, Founder and Managing Partner of Laughlin Legal Divorce & Family Law Group in Silicon Valley knows better than most. Ms. Laughlin fields the questions of individuals pursuing very high net worth divorce and ultra high net worth divorce every day. Read on to discover her answers to some of the most commonly asked questions.
Q Is there a difference between a high asset divorce lawyer and a high net worth divorce lawyer?
No. They’re just different ways of expressing the size of the marital estate and are essentially the same.
Q Why exactly does someone need a high net worth divorce lawyer?
Good question. We have assets and asset classes now that barely existed a generation ago, including among other things: cryptocurrency, carried interest, different forms of stock options, and secondary interest rates. You can now buy into a pre-IPO company as a secondary investor on websites like Robin Hood, Equity Zen, Forge Global, NASDAQ Private Market, HIIVE, etc. Many of these newer or alternative asset classes are speculative and very difficult to value. And those alternative assets will continue to evolve. They’re changing all the time.
So what you need from a high net worth divorce lawyer is someone who’s current with these financial trends and tools because they’re immersed in them on a daily basis. It’s their world.
Q What sorts of outside professionals do you bring in on a high asset divorce case?
All kinds – forensic accountants, business appraisers, asset appraisers, tax attorneys, CPAs, estate planning attorneys, private judges, certified divorce financial analysts, sometimes business lawyers. And when the case involves a custody dispute especially with neuro diverse or special needs children, we may also need other professionals including psychologists, custody evaluators, parenting coordinators, educational consultants, etc.
Q Does it vary from law firm to law firm as to who qualifies for a high net worth divorce or high asset divorce?
It does vary from firm to firm. At Laughlin Legal, our clients are in Silicon Valley and their marital estates are typically in excess of $10M. These are the individuals who require the kind of expertise we offer.
One thing I think someone seeking a high asset divorce should ask of the attorneys they interview and consider is if they have ever taken an accounting class. Not every attorney who positions themselves as high asset is truly qualified for the work. I had a very high asset case come to me from another attorney and I looked at the settlement proposal that was sent out and it was clear that this lawyer was not qualified to do this type of work. We quickly revoked the proposal.
I love accounting. Always have. I think I took accounting I and II, and I became a securities litigator where I was dealing with these high assets not only from an individual standpoint, what officers and directors owned, but also from a corporate standpoint because I was representing the corporation along with the C-level employees and board members.
Q Does ‘complex divorce’ simply mean ‘financially complex divorce’ or are there other issues involved?
Financial complexity is the most common trait of a complex divorce, but it’s just one of a number of variations we see.
When I do an intake with a new client, I can tell very quickly where the complexities are going to lie. Divorce in California is generally straightforward because we have very clear laws governing divorce. Where complexities outside of financial complexity most often jump out is either you have parents who have very different ideas about parenting or timeshare with their children. Or you have a spouse who hasn’t worked in a long time and does not want to go back to work. Or if a member of the family is neurodiverse, that’s an additional layer of complexity.
Q Is complex property division handled differently than standard property division?
Yes, because typically there’s the presumption that everything acquired during the marriage, both assets and liabilities, are community property. So you just split it right down the middle if you can. But for more complex assets, like stock options that have been granted during marriage, they usually don’t vest all at once. Maybe a quarter of them will vest after one year of employment, and then they’ll continue to vest in increments as time goes on. Those are complex assets because only a portion of them are community and a lot of it is earned over time.
Or say, for example, someone founds a company during marriage so you have a company that’s a community asset, but you can’t just divide it down the middle, because the founder is going to keep the company, and his efforts after the date of separation enhanced the value of the company. So there’s a real valuation issue there to be resolved.
Should you consider a high net worth divorce attorney from Laughlin Legal for your divorce?
We hope you will! Laughlin Legal Divorce & Family Law Group is a collection of some of the most skilled divorce and family law attorneys and mediators in Silicon Valley. Laughlin Legal is trusted throughout California for their ability to skillfully help divorcing parties achieve a better outcome.
If you or someone you love is headed for a divorce or requires help with another family law issue, let’s talk. Call us now at 650.343.3486 to schedule a consultation with a Laughlin Legal high net worth divorce attorney. If you’d prefer, you can email us to set up your appointment. If we miss your call, we will respond promptly and call you back as soon as possible.
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