Are you considering a divorce in Carlsbad? Are you a business owner or professional such as a doctor or engineer, or a high-earning professional? Are there proven strategies to cover your assets in a San Diego divorce while protecting your short and long-term interests?
High wage earners and professionals realize they have a lot to lose in any divorce. However, one must be very careful to take legal actions to protect and preserve assets and business ownership. Taking the wrong steps can actually lead to a much harsher and expensive outcome in a San Diego divorce.
What are some steps to consider as you develop a strategy to cover your assets in a San Diego divorce? The first concept to focus upon and thoroughly understand is “valuation.” The Court is required to divide all assets and liabilities of the parties before a divorce can be finalized. The first step in this process is to establish a complete list of all assets and their present value or “valuation.”
How do you value an investment portfolio? How do you establish the valuation of a business or professional practice? How does the result of any valuation affect your ability to cover your assets in a San Diego divorce?
Generally speaking, if an asset is considered to be a community asset in whole or in part, the community interest in the asset must be divided between the two parties. If a business owner wishes to maintain control and ownership of their company after the divorce it will be necessary to “offset” or buy-out the marital interest of their former spouse.
The higher the amount of the valuation, the greater the amount which will be required to settle your former spouse’s interest in the company. This is true for all assets you wish to keep after a divorce in San Diego.
Any attempt to hide money or assets, divert or disguise income or otherwise mislead the Court regarding the existence of an asset or it’s value will result in harsh consequences. Those who have attempted to manipulate the books of their company to fool the Court have lost their business altogether to their former spouse in the divorce. There is the famous case of a spouse who attempted to hide a winning lottery ticket resulting in the award of the entire amount to their former spouse.
Any attempt to misrepresent valuation or hide assets will be met with stiff financial sanctions or forfeiture of the asset altogether. The Certified Family Law Specialists at Burke & Domercq provide sound counsel to cover your assets in a San Diego divorce. We can discuss issues such as non-qualified benefit plans, illiquid investments and other strategies which might help to reduce your exposure in a future divorce.