Virtually no one in California weds with the intent of filing for divorce later on. However, the reality is that many couples are simply unhappy after spending years or even decades together, and the best option is to end the marriage. This might feel easier said than done, especially in the case of a high asset divorce that comes after decades spent together.
Prenuptial and postnuptial agreements are about far more than simplifying the divorce process or opening up new lines of communication. A carefully crafted pre or postnup can protect a person's assets, California business interests and far more. When it comes to dealing with a potentially high asset divorce, these protections can be essential for securing the best possible outcome.
Handling complicated assets, large bank accounts and financial investments is not for the faint of heart. When this much is on the line, California couples usually turn to professional advisers for help and guidance. But when it comes to a high asset divorce, should couples continue sharing the same advisers, or should they aim for a cleaner financial break?
Divorce can be a financially stressful process with which many people in California struggle. When the stakes are high -- such as in a high asset divorce -- individuals may feel understandably worried about their future financial health. Here are a few things to keep in mind for those who are concerned about these issues and want to avoid potentially costly tax implications as the year rapidly draws to a close.
Prenuptial agreements are enjoying a bit of boom in popularity, and experts say there is one group to thank for that -- millennials. As these young adults in California delay marriage in favor of dating for longer periods and advancing their careers, they have significantly more to protect. When thinking ahead, protecting themselves during a potentially high asset divorce is essential.
Ending a marriage is often viewed as an all-out battle in which each side fights to be the winner. In reality, most California couples know that fighting over every detail is not always smart, especially when the stakes are high. Mediation is a more collaborative approach that may be appropriate for those going through a high asset divorce.
Comfortable, but not quite wealthy -- that is what one family law expert says is the sweet spot for fighting during divorce. For California residents who are embarking on a high asset divorce that involves anywhere between $1 and $5 million in money and assets, the chances of fighting throughout the process are higher than for those who have both more and less. Although this might seem counter-intuitive, there is some evidence to back it up.
About 46 percent of women surveyed claim they were met with staggering financial surprises when their marriage ended. Some women in California and other states were unaware of their household's net worth when going through a high asset divorce. Surprisingly, women are eager to relinquish financial responsibilities to their husbands over the course of the marriage, leaving many oblivious that they share responsibility for the marital debt.
The rate at which American couples end their marriages has been around 50 percent for decades, and studies show most divorces result from money problems. Some believe it is impossible to have a successful marriage when money issues are at the forefront of family problems. Studies show that couples in California who have money problems during a marriage often do not communicate about finances, and the problems often end in divorce.
Right now may be the best time for those who are well off financially to get divorced. With the upcoming changes in tax laws, it may be beneficial for wealthy clients to act fast and have their agreements signed before the end of the year. In California and elsewhere, the tax burden can shift dramatically by waiting until 2019 to pursue a high asset divorce.