Divorcing with significant assets at stake brings a unique set of challenges that go well beyond the emotional strain of ending a marriage. In high-asset divorces, the decisions you make early on can impact your financial future for years to come. Unfortunately, even well-informed individuals can make avoidable missteps that lead to costly outcomes.
At Fernandez Law Group, our Los Angeles Certified Family Law Specialists help clients in California navigate high-value divorces with clarity, precision, and protection.
If you’re facing a high-asset divorce, here are some of the most common mistakes—and how to avoid them.
Mistake #1: Underestimating the Complexity of Community Property Law
California is a community property state, which means all assets and debts acquired during the marriage are presumed to be shared equally. However, that doesn’t mean every account or investment is split down the middle. Tracing separate property claims, evaluating business interests, or identifying commingled funds requires a detailed analysis of both legal and financial aspects.
Failing to classify assets correctly can result in an unfair division or even the relinquishment of valuable separate property. It is essential to work with our experienced attorneys, who know how to protect your claims and advocate for proper valuation.
Mistake #2: Hiding or Failing to Disclose Assets
It may be tempting to move money, delay income, or “forget” to report certain accounts—but hiding assets in a California divorce is both unethical and illegal. Courts take full financial disclosure seriously. If caught omitting information, you could face court sanctions, lose credibility, and even forfeit the asset entirely.
Avoid this risk by being completely transparent from the start. At Fernandez Law Group, we work with forensic accountants and financial experts when needed to ensure that all property is accurately identified and properly valued.
Mistake #3: Overlooking the Tax Consequences of Settlement
Tax consequences are often overlooked in the rush to finalize a settlement in high-asset divorces. Property division may seem even, but if one party receives tax-deferred retirement accounts and the other receives cash or after-tax investments, the outcome is anything but equal.
When negotiating a fair and sustainable agreement, it’s crucial to consider capital gains, tax liabilities, retirement penalties, and ongoing tax implications. Our experienced family law attorneys can help structure settlements to protect your financial health long after the divorce is finalized.
Mistake #4: Letting Emotions Drive Financial Decisions
In high-conflict divorces, emotions can lead people to fight for assets they don’t want or give up too much to end the process. That can lead to years of regret or financial instability. Having a level-headed legal advocate helps you stay focused on long-term priorities, not just short-term wins.
Our Certified Family Law Specialists provide clients with clear legal strategies rooted in logic and experience, so you don’t have to make those decisions alone.
Protect What Matters with Fernandez Law Group
High-asset divorces necessitate specialized legal expertise and a meticulous, strategic approach. At Fernandez Law Group, our Los Angeles County Certified Family Law Specialists are here to help you avoid costly mistakes and protect your future.
Schedule a confidential consultation at (310) 564-9163 or online today to gain the clarity you need to move forward confidently.