A Q&A about high-asset divorce asset valuation challenges with Amy Laughlin, UHNW divorce and investment property division lawyer.
What don’t most people know about dividing assets in high-net-worth divorce in California?
Amy Laughlin, Founder and Partner at Laughlin Legal Divorce & Family Law Group in San Mateo doesn’t even pause to consider the answer to this question.
AMY LAUGHLIN: One very consistently misunderstood aspect of the high-asset divorce legal process in California is the mistaken notion that if you keep your assets in your name even though you acquired them anytime between the day you were married and the day you separated, that they qualify as separate property, not community property.
So many couples will proudly show us their divorce and investment property division spreadsheet backed up with receipts for cars and artwork and real estate as well as statements from their bank accounts, savings accounts, and investment accounts, bought using their own income and all in just their name, and they are stunned to learn that it’s all community property. They’re even more stunned to learn that debts acquired by their spouse without their knowledge while they were married are also considered community property. When it comes to property division, we are the bearers of that particular bit of bad news at least several times a month.“ We’ve had more clients who stayed married to their spouse despite their spouse’s financially irresponsible habits because they assumed that if they hadn’t contributed in any way to the accrual of the debt they were off the hook. Not the case.”
How about real estate division in high-asset divorces?
AMY LAUGHLIN: Real estate division in high-asset divorces for property purchased during the marriage is subject to a 50/50 community split. That’s true even if the couple’s contributions to paying for it, renovating it, and/or maintaining it were wildly disproportionate.
Another frequent misunderstanding of high-asset divorce property laws that frequently comes up is that just because your spouse put your name on the title to a house they owned before you were married does not guarantee an interest. Very specific language has to be used to transmute a separate property into community property.
Any other mistakes people commonly make in high-value asset division in divorce?
AMY LAUGHLIN: One of the most common is couples assume that if they both have agreed to a division of assets that might be outside of a 50/50 split, then the court will approve it. Not so. Every division of assets must be approved by a judge even if that judge countermands what the couple has agreed to. It’s a way of ensuring that the division is fair. You can’t trust every soon-to-be-ex to tell their spouse a completely truthful story.
Does mediation factor into high-asset divorce property laws?
AMY LAUGHLIN: Outside of domestic abuse cases, mediation is almost always a smart tool to deploy in divorce. It promotes a more collaborative approach between couples and keeps the heat down.
But you have to have an issue that needs mediating. Not infrequently, a new client will say, “I’m getting a divorce, I want you to represent me, and we’ve already decided on how we want to divide everything, and we also want to hire a mediator.” Well if you’ve decided everything, what is there to mediate?! Why bring in a third person that you’re going have to pay?
Most lawyers are very trained at negotiation and coming to an agreement, so sometimes it makes sense to let the attorneys decide which issues need to be mediated, if any.
Is utilizing a private judge for high-value asset division in divorce a faster means to an end?
AMY LAUGHLIN: Definitely. It’s no secret that public court systems are profoundly backlogged. To get a hearing for division of property or spousal support, the court is setting hearings 4 to 6 months away. That can be a long, stressful period for a couple at odds with each other and especially for their children. With a private judge, you could theoretically get in tomorrow. Schedules are much more open. It simply depends upon the availability of all involved.
Another reason to consider using a private judge is privacy. Many people don’t realize that public court records are public, and anyone can discover the details of your divorce. The private judge process can be much more confidential.
Finally, I believe it’s generally less expensive. Though some couples assume that going with a private judge will be significantly more expensive, it tends to be less expensive in the long run because you’re not paying your attorneys to spin their wheels for months as you wait for your day in court.
For some of the best divorce and investment property division attorneys in California, look no further.
Laughlin Legal Divorce & Family Law Group is a collection of some of the most skilled high net worth and ultra high net worth divorce and property division attorneys and mediators in California. They’re also highly experienced with international property division in divorce. 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, learn more about how the divorce services we offer can best represent you and your values. Call us now at 650.343.3486 to schedule a consultation with a Laughlin Legal 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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