The division of highly valuable assets in a marriage can make the divorce process more complicated than in a conventional divorce. A high-asset divorce case usually involves marital assets that are worth several million dollars or more. Property division includes assessing various assets, including but not limited to stock options, art collections, real estate, jewelry and business holdings.
California is a community property state, which means that any assets acquired during the marriage are split equally between the two spouses. This includes both tangible and intangible property.
What is tangible and intangible property?
Tangible property is an item that you can physically see and touch, such as a house, car or diamond ring. Intangible property could also be called intellectual property. These are things that cannot be seen or touched, yet they could be highly valuable. Some examples of intangible property include:
- Business relationships
While they may not be physical objects, these intangible items are very valuable to the person who owns them. Therefore, they may become points of contention in a high-asset divorce.
Dividing marital assets and handling taxation issues
The way assets are divided between spouses during a divorce depends on any prenuptial or post-marital agreements that may have been made, as well as the specific facts and circumstances of the case. When dividing marital assets, you must also carefully consider any tax implications. For instance, transferring ownership of assets, such as money or stocks, from one spouse to the other during the divorce can lead to serious tax consequences. Additionally, after the divorce, only one parent can claim their children as dependents, and both parents must file their taxes separately.
A high-asset divorce demands careful consideration and close supervision to guarantee that each party receives a fair portion of the assets. Therefore, it makes sense to seek assistance with the process.