Divorce is an emotionally charged journey that feels like a whirlwind. Having a firm grasp on several things is essential before proceeding with a divorce in California. Whether you’re contemplating an amicable split or bracing for a contentious battle, knowing the paths available to you can bring clarity amidst the storm. Continue reading to explore:
- Possible ways to realize a resolution to your divorce.
- How assets are divided as a divorce concludes.
- If a forensic accountant may be worth hiring for a smooth conclusion to your divorce.
What Are The Options For Proceeding With A Divorce In California?
California is a one-party divorce state. This means that if one party wants to get divorced, they can proceed to file for divorce. There are two primary options for proceeding with a divorce in California:
Agreement (Uncontested Divorce)
This is when both parties agree to the terms of the divorce. It involves drafting the necessary paperwork and filing it with the court. California law requires a waiting period of six months from the initial filing before the divorce can be finalized.
Agreements can be reached either immediately or eventually. If you and your spouse already have an agreement and simply need assistance with drafting the necessary paperwork, that’s one option to consider. Alternatively, if you both want to reach an agreement but require mediation to facilitate the process, that’s also a viable route.
These approaches can be pursued in two ways:
- Representation By One Party
Each party can retain their own attorney to represent their interests during the negotiation and drafting of agreements. This provides the advantage of having legal counsel advocating for your rights and ensuring that the final agreement is fair and legally sound.
- Joint Representation
Alternatively, both parties can jointly retain an attorney who will guide them through the process and help mediate discussions. In this situation, the attorney will not represent either party exclusively but will assist in facilitating communication and reaching mutually acceptable terms. The attorney will ensure that all legal requirements are met and that the agreements are properly documented and filed with the court.
In either case, the attorney will work to ensure that the agreements reached are in compliance with relevant laws and regulations. This approach, known as collaborative practice, allows for a smoother negotiation process and can help minimize conflicts between the parties.
Litigation (Contested Divorce)
If both parties cannot reach an agreement on important issues such as child custody, division of assets, and spousal support, the divorce may need to proceed through litigation. This involves one party filing a petition for divorce, to which the other party responds. The issues are addressed through motions and hearings, and if necessary, the case may go to trial for resolution.
It is important to note that divorce proceedings obviously are much more costly and time-consuming when they are done through the court. And, of course, the duration and cost of the divorce proceedings are greatly influenced by you and your to-be ex-spouse’s ability to cooperate and reach agreements.
The more contentious the issues and the less willing you are to compromise, the longer and more expensive the process will likely become. Everything hinges on being able to come to agreements whenever possible, and this can dramatically streamline the divorce process as a whole.
My Spouse And I Have A Lot Of High-Value Assets. How Are The Assets Divided In A California Divorce?
I joke when I say that this is a really basic question with a very complicated answer, but it’s true. Dividing high-value assets in a California divorce can be incredibly complex and depends on various factors. Here are some to keep in mind as you explore the topic:
Community Vs. Separate Property
Any assets you acquire during your marriage are generally considered community property and are subject to equal division. On the other hand, any assets owned before the marriage or acquired by gift or inheritance during the marriage may be considered separate property and typically remain property of the individual who owns them.
Appreciation Of Separate Property
Even if an asset is considered separate property, any increase in its value during the marriage may be subject to division as community property.
Reimbursement Claims
If community funds were used to improve separate property or vice versa, there may be reimbursement claims to address the contributions made by one spouse to the other’s separate property.
Commingling
When separate and community property funds are mixed together or used interchangeably, it can complicate how the assets are categorized. Commingled assets may cause separate property to be considered community property, depending on the circumstances.
Equitable Distribution
While California follows the community property principle, the court may consider various factors to achieve an equitable distribution of assets, including the financial situation of each spouse, their earning capacity, and their contributions to the marriage.
It’s extremely wise to seek guidance from a knowledgeable divorce attorney who can assess your specific situation in light of the many laws and exceptions out there and help you navigate the complexities of asset division in a California divorce.
When Might A Forensic Accountant Health Be Needed In A High-Income Divorce?
Forensic accountants play a critical role in high-income divorces, particularly in complex financial situations or when there are concerns about asset disclosure. They are truly lifesavers in several different situations, including those pertaining to:
Complex Financial Assets
In cases involving various financial instruments like stock options, RSUs, and shares from different companies with different vesting schedules, a forensic accountant can unravel any complications cloaked by uncertainty and provide accurate valuations.
Asset Tracing
When there are suspicions of hidden assets or financial misconduct, a forensic accountant can trace financial transactions, identify discrepancies, and ensure transparency in asset disclosure.
Uncovering Financial Details
Forensic accountants delve deep into financial records and uncover details that might otherwise go unnoticed, such as undisclosed accounts, irregular transactions, or missing funds.
Ensuring Fair Distribution
Delivering the comprehensive financial analysis and documentation they do, forensic accountants help ensure that assets are fairly divided and that both parties have a clear understanding of the financial situation at hand.
Hiring a forensic accountant is generally quite expensive, but the services they provide are worth every penny. They are invaluable in ensuring a fair and transparent resolution to your case, especially if it is a high-stakes divorce with many financial complexities.
For more information on Proceeding With A Divorce In California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 301-6777 today.
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