Lifestyles of the rich and the famous are different in many ways, including the divorce process. In this blog, our Newport Beach divorce attorneys discuss how different divorce can be for affluent couples.
The divorce of Brad Pitt and Angelina is one example of a wealthy divorce currently permeating the mainstream media, but not every wealthy divorce is as complicated or a public as the divorce of these wealthy superstars’.
One of the major differences in the wealthy divorces is the likelihood of the couple to have both prenuptial and postnuptial agreements controlling the division of assets. Prenuptial agreements are often created as a form of asset protection for both parties. These agreements accomplish this by clearly outlining separate property held before the marriage. While these agreements help high-net worth divorces dissolve smoothly, they can be challenged if for instance, the spouse that earned a higher income failed to report all their assets and income in the initial drafting of the prenuptial agreement, or if they are caught hiding assets during the divorce process.
While California is a state that divides assets 50/50, with high net-worth divorces, how the assets are divided depends on the type of assets involved in the divorce case. Financial advisors, business appraisers, art appraisers and other experts are often called in to value various pieces of income and other assets. Both clients’ attorneys must qualify assets as passive assets or active assets and then often these assets are not always easy to parcel out equally.
California’s family courts aim to determine child custody by what is in the best interests of the children. This means a judge will strive to create solutions where the children can continue the same standard of living. The basic child support calculations cap out at a certain amount and often do not factor in the cost of school, childcare, and extracurricular activities.