Couples going through a divorce in California are likely to find the process to be stressful and complicated. The situation gets even more challenging when the couple has a high net worth. Here are a few reasons why this is often the case.
Property division complications
Couples with a high net worth often find that property division is one of the most heated issues that they experience. With numerous assets, including vehicles, a marital home and vacation homes, artwork, a business and various other assets, the divorce proceedings take longer and could involve conflicting priorities. California is a community property state, so all marital debts and assets are divided between both spouses equally in a 50/50 division unless there is documentation like a prenup that indicates otherwise.
Judges often award alimony in high net worth divorce cases. Usually, one person cannot afford to maintain the standard of living they have become accustomed to on their own. When infidelity is involved, judges take this into consideration as well, further complicating the divorce proceedings.
Child support complications
Parents are financially responsible for their children until the children are no longer minors. Most courts want children to be able to maintain the same standard of living that they enjoyed before the divorce took place. With high net-worth couple divorces, judges may deviate from specific guidelines determining how much child support a parent must pay, making the situation even more complicated.
Some high-net-worth individuals decide to divorce during economic downturns when they know the value of their assets will be lower. They know their businesses will eventually come back and take advantage of the situation to start the divorce process.