High Asset Divorce Attorney In La Jolla, CA
Divorce can be incredibly difficult to go through. Trying to navigate complex divorce laws can be overwhelming, especially when the divorce involves high-value assets. During a divorce, it’s important to have an empathetic La Jolla high asset divorce lawyer on your side. The attorneys at Neumann Family Law, A.P.C., treat every new client with the compassion they need.
Why Choose Us?
To us, divorce is much more than just numbers and legal strategy. We understand how emotional divorce can be, and we take care to treat our clients with the sensitivity they deserve. Our team of four skilled attorneys has extensive experience in high asset cases, and we take our clients’ needs into account when determining a path forward. With two Certified Family Law Specialists on our team, we know how to craft a winning case.
You can trust our attorneys to get you through this difficult time. With 7-11% of San Diego residents divorced as of 2023, you are not alone.
La Jolla Property Division Divorce Laws
The average household income in San Diego was $104,321 in 2023, meaning that divorce proceedings often involve high asset property division. When you get divorced in California, you must divide your property and debts, with the court overseeing this process.
Divorce can be more complicated for couples with many high-value assets. It’s vital to hire a high asset divorce lawyer so you don’t lose more than you should. A skilled lawyer can help you by carefully looking at all your finances and negotiating with your spouse’s legal team.
California divides property into two types:
- Community property: This is property you and your spouse gained during your marriage. Community property includes income earned during the marriage and debts taken on while married, even if the debt is in only one spouse’s name. During a divorce, courts will typically split community property evenly between spouses unless the couple can agree on a different plan.
- Separate property: Separate property is what either of you owned before you got married or what you received as a gift or inheritance. Anything you gained after you separated is considered separate property as well. Sometimes, property can be part community and part separate if, for example, you use separate money for a down payment on a house but make mortgage payments with community money. It’s important to factor in the date of separation when dividing property.
Tax Implications During a California Divorce
When couples get divorced, they often focus on how to split their property. However, it’s also important to think about the tax consequences of those choices. The lawyers at Neumann Family Law, A.P.C., in La Jolla, CA work alongside tax professionals to help you make informed decisions.
When spouses transfer property to each other during divorce proceedings, there is usually no immediate tax cost. This means that the person transferring the property does not have to pay taxes on any profit they might have made from it at that time.
Instead, the person receiving the asset takes over the original value of the property for tax purposes. For a transfer to count as part of a divorce, it must happen within one year after the marriage ends or be related to the end of the marriage.
However, if one spouse later sells property they received, they may owe capital gains tax if the property’s value has increased since the divorce. For homes, there are special rules that may let a divorced homeowner exclude up to $250,000 of capital gains when selling, as long as they lived in the home for at least two of the last five years and haven’t used this exclusion recently.
Hire a High Asset Divorce Lawyer
The attorneys at Neumann Family Law, A.P.C., understand the stakes involved in high asset divorces. We also know that divorces involve complex emotions. Our team puts our clients’ feelings at the forefront of our legal strategy. As longtime California residents, we’ve dedicated our lives to protecting the legal rights of our neighbors and communities.
FAQs About La Jolla, CA High Asset Divorce Laws
What Counts as a High Asset Divorce in California?
There is no specific rule that determines what counts as a high asset divorce. These cases are more complicated than typical divorces because there are many different types of assets to consider, such as vacation properties, cars, boats, businesses, stocks, retirement accounts, and even intellectual property. You’ll want to work with a lawyer who has experience working with high-value assets.
What Happens if My Spouse Hides Assets During High Asset Divorce Proceedings?
If your spouse hides assets during divorce proceedings and the court finds out, they can give you 50% to 100% of the value of those assets. They can also make them pay for your attorney fees and costs. This is why it’s vital that you fully disclose all assets. Experienced lawyers know how to check financial records closely to find any hidden money or property.
How Does Spousal Support Affect My Taxes in a High Asset Divorce in California?
Spousal support can affect your taxes in California in different ways. For federal taxes, the person paying support cannot deduct the payments, and the person receiving support does not have to report them as income. However, for California state taxes, the person paying support can still deduct the payments, and the person receiving support must report them as income. If the spousal support order changes, the tax rules may also change.
Do I Have to Go to Court During a California High Asset Divorce?
Depending on the circumstances, you may not need to take your high asset divorce case to court. One common alternative is mediation. A neutral mediator helps both spouses talk and reach an agreement about property division. The mediator doesn’t decide the outcome but helps find solutions. Mediation is usually faster, cheaper, and more private than going to court. Arbitration is another option, where a neutral arbitrator makes binding decisions after hearing both sides.
Choose a Trusted California Family Law Firm
The attorneys at Neumann Family Law, A.P.C., work to resolve cases as quickly and efficiently as possible but aren’t afraid to take things to trial if necessary. We regularly represent our La Jolla clients at the Central Courthouse, located at 1100 Union Street in San Diego.
We’ve handled hundreds of family law cases and fight hard to achieve the most favorable outcome for our clients. Let us take over the legal side of things so you can focus on your well-being. Contact our team today to learn how we can represent your interests during your divorce.
*CFLS = Certified Family Law Specialist by the State Bar of California Board of Legal Specialization
