UHNW Divorce
Ultra High Net Worth Divorce Lawyers
“Silicon Valley is a community of ambitious independent thinkers who are drawn to live here and network here and build amazing companies. And they socialize and network with lots of other people who build amazing companies. That environment, that synergy creates incredible wealth and opportunity, sometimes at the expense of a marriage.
When that happens, their divorce counsel must have a very sophisticated understanding of business and finances, however they can come by it, or there’s a good chance they’ll fail their client. In my case, it came from years in the complex legal practice of securities litigation before I shifted to family law. You can’t learn how to handle these cases in law school, you can only learn in the courtroom. Experience wins cases.”
What constitutes an Ultra High Net Worth Divorce?
Caitlin Ashton, Partner at Laughlin Legal Divorce & Family Law Group, a California ultra high net worth divorce law firm explains, “There isn’t a figure or formula. But we’ve observed that a high net worth divorce, also known as a high asset divorce, is where the married parties generally have 2 or more of the following:
– Estate assets in excess of $10M excluding real estate in California, domestically, or abroad
– Real estate asset(s) in California, domestically, or abroad
– Various business interests or LLC interests in California, domestically, or abroad
– Complex equity compensation such as stocks, RSUs, carry, etc.
And in an ultra high net worth divorce, estate assets are in excess of $50M excluding real estate.”
Complexity within the context of high net worth and ultra high net worth divorce is expressed in a variety of ways. Amy Laughlin, Founder and Partner at Laughlin Legal in San Mateo, California elaborates, “There are typically a lot of moving parts. For example, we often represent founders of companies. Let’s say the founder owns shares in their company and they’re in the process of selling it while also getting divorced. But only some of those founders’ shares are community property and others are separate. And then there are holding companies with the same disposition issues. And you have to communicate all this to opposing counsel – even though it’s supposed to be highly confidential – because it involves a community interest. It’s a delicate balance with huge financial consequences for both parties. It’s not for the uninitiated.”
Beyond the assets, what sort of person needs an ultra high net worth divorce lawyer?
Most couples who file for these divorces did not inherit their wealth. Amy Laughlin observes, “California, specifically Silicon Valley, is home to an extraordinarily dense population of high achievers. They’re typically either highly educated or rigorously self-taught. They have a very strong work ethic. They can also be demanding in that they’re confident and decisive and live in a world where things get done. That’s what they’re accustomed to. But they also demand a great deal of themselves and this is one of the reasons we get along with our high net worth clients so well – because we make the same ultra high level demands of ourselves. So we can’t take every case; we have to be selective or we won’t be able to provide the really high level of service we’re committed to providing.
Contrary to what you’d expect, sometimes the most complex California divorces will take less time than the less complex cases because of the nature of the individuals involved. They won’t tolerate a process that drags on for years, it’s too much of an impediment to their fast-moving lives. They’ll be very demanding for a short period of time, and also very cooperative. And they’ll get it done.”
What are the unique challenges for an (U)HNW divorce case?
Amy Laughlin finds there are challenges for both counsel and client. “For counsel, these are very sophisticated businesspeople with an understanding of finances that’s way beyond the average divorce lawyer. And counsel has to match their level of sophistication and the extraordinary energy of these clients. It’s such an adrenaline rush; I love these cases. But the knowledge you need to handle them is acquired over years.
On the client side, a lot of times, they’re public figures. They’re well known throughout the Valley, and frankly, there are envious people who are looking for dirt on them. So we try to keep things out of the public record, for instance, by working with a private judge in a private setting, and confidentiality agreements signed by absolutely everyone involved. These clients also need an attorney with a mastery of negotiation, someone who is not fanning the flames on a potentially volatile situation. That’s the last thing they want.”
Daniel’s parents gave them their first home as a wedding gift months before the wedding, and Daniel failed to add Sarah to the title. During dissolution, Daniel claimed the house was a gift to him, only. Missed opportunity #2 – to spend less time and money getting divorced by establishing community property when it’s acquired.
Looking for help with an ultra high net worth divorce or child custody battle? Let’s talk.
Learn more about what a California attorney with expertise in ultra high net worth divorce and child custody can do for you. Call us now at 650.343.3486 to schedule your first consultation with us. 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.
Laughlin Legal Family Law Group
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Terminology
In California, legal separation requires the services of a divorce lawyer and addresses all the same issues as divorce regarding asset division, custody, and support, but the couple remains married though living separate and apart.
Complex asset & business division in California is the process of determining the status of the assets, then dividing them up equitably between the divorcing spouses. There are generally two categories of assets. Marital assets are those accumulated over the duration of the marriage.
Since California is a community property state, each spouse is entitled to half of all marital assets. Marital assets are those that are acquired after a couple got married but before legal separation or divorce.
Non-marital assets, called Separate Property in California, are assets acquired either before the marriage or after legal separation, or gifts and inheritances acquired during the marriage. Be warned: assets aren’t the only thing considered to be marital. Debt, too, can be divided and shared.
Taxes and Accounting issues can be a significant consideration when determining asset division. For instance, claiming children as dependents, or capital gains tax from selling a property.
Spousal support or maintenance formerly known as alimony, is what one spouse may be ordered to pay to the other spouse. In California, even recipients of spousal support have an obligation to attempt to become self-supporting within a reasonable period. This is one of the most contentious aspects of divorce and it’s essential to work with an experienced San Mateo divorce lawyer and spousal support lawyer to achieve a fair resolution.
Child custody refers to the determination of how the parents divide the rights and responsibilities of taking care of their child or children. In California, every case begins with the presumption that joint custody is in the best interest of the child. A good San Mateo divorce attorney and child custody lawyer will tell you there are two types of custody, legal and physical, and advise you on the best options for gaining or retaining custody of your child or children. The legal custodian makes important decisions for the children and their welfare. The physical custodian lives with the children more than 50% of the time.
Child support in California is calculated using a statutory or guideline formula that considers parents’ gross income from all sources, number of children, amount of time children spend with each parent, tax filing status, and special needs of the children. When a parent refuses to pay child support, a San Mateo divorce lawyer and child support lawyer either seeks an order for child support or holds the ex-spouse legally responsible for inadequate or missing payments.
Temporary orders are orders issued by the court – such as temporary child custody orders or temporary spousal support orders – before the case goes to trial to establish boundaries and maintain the family’s status quo until a final divorce and/or custody agreement is entered and approved by the court.
In California, LGBTQ+ same-sex divorce couples have the same divorce rights as any couple, and there may be special considerations with parental and property rights.
Domestic violence, though prevalent in California, is often difficult to prove in part because abusers can be stealthy but also because physical violence is just one of many forms. For instance, it’s challenging to prove verbal abuse without witnesses. Victims of abuse who work with an experienced San Mateo divorce lawyer / domestic violence lawyer will find they’re often successful at obtaining restraining orders.
MEDIATION VS LITIGATION VS COLLABORATIVE LAW
What’s the best way to resolve a divorce dispute in the Bay Area?
Laughlin Legal’s California divorce attorneys are skilled at the three primary approaches to resolving a divorce dispute. Mediation is a strategy that provides the couple with a neutral third-party mediator to help them resolve issues and reach a final settlement agreement. It is typically faster and less expensive than litigation provided both couples are willing to negotiate and compromise. Laughlin Legal’s California divorce attorneys are also skilled mediators providing divorce mediation services to our clients.
Litigation is the approach taken when a couple either won’t or can’t resolve their issues out of court. Each partner retains a divorce attorney to advise and represent them as they try to reach a final settlement agreement. If they cannot, they turn to a judge to resolve the dispute for them in court.
Collaborative law is where each partner hires a collaborative lawyer to represent them, help them resolve their issues, and reach a final settlement agreement. Both partners and both lawyers sign an agreement to authentically pursue a collaborative resolution and not pursue litigation during the collaborative process. Though it’s typically faster and less expensive than litigation, it’s more expensive than mediation because it requires that both parties hire lawyers.
Case Story
An Ultra High Net Worth Client In Their Own Words
“I’ve been a client of Laughlin Legal and am impressed with the guidance and responsiveness of Amy and the team. They are wonderful to work with which greatly eases the anxiety of dealing with certain family law matters. The legal team at Laughlin helped me strategize on what was appropriate for my personal situation and then we set about executing to that strategy.”
ROGER SMITH, FOUNDER, SILICON VALLEY BANK
High net worth couple with a lot to split? Get the best complex asset division lawyer you can find.
It’s likely the worst time of your life. The marriage you thought would last forever is over. You might be feeling betrayed, enraged, bereft, depressed, grief stricken, terrified, or stunned.
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