What Makes High-Income Divorce Cases Different in San Jose?

San Jose is a beautiful city surrounded by the rolling hills of Silicon Valley in the Bay Area. Filled with stunning architectural landmarks and rich in culture, it is a fantastic place to call home. Due to the rich technology industry, San Jose has become one of the wealthiest cities in California. This can leave couples wondering, “What makes high-income divorce cases different in San Jose?”

With median incomes that exceed national averages and a more complex mix of assets, a high-income divorce can be extremely different and complicated compared to a traditional divorce.

At the Law Offices of Rod Firoozye, our team has experience helping couples throughout the San Jose area navigate these complicated cases and help them find some middle ground in the Santa Clara County Superior Court.

What Is a High-Net-Worth Divorce and Why Are They So Challenging?

A high-net-worth divorce in California is a divorce with a tremendous amount of assets totaling more than a net of $1 million. These divorces differ from a traditional divorce because they are more complex due to the significant and diverse assets.

With high net worth divorces, both spouses will need to provide financial disclosures naming all assets, debts, and expenses so that the division is done fairly and justly. These divorces often require the aid of outside experts, such as forensic accountants, to review all assets and look for any hidden or offshore accounts. Our experienced team of high-asset divorce lawyers can review all documentation and help develop strategies for asset division.

Complex asset divisions are common in high-income divorces; these can include:

• Investment portfolios, including stocks, bonds, mutual funds, etc.
• Real estate holdings
• Privately held businesses
• Retirement accounts
• Fine jewelry
• Luxury assets, such as fine arts, vehicles, and collectables

Valuing these assets can lead to disagreements between parties and requires expert appraisers and forensic accountants so that accurate valuations are assigned for large, unique assets like vacation homes or collectible antiques. Large real estate holdings or business interests add another layer of complexity when it comes to asset division and may require splitting the interests, doing a buyout, or providing ongoing spousal support to the spouse without these ties.

Sifting through assets and untangling joint and separately owned assets can be very challenging. Maintaining records helps immensely during the process.

Other Impacts of a High-Income Divorce in San Jose

In 2023, San Jose was home to 990,054 residents with a median household income of $141,565 and a median property value of $1.19 million, much higher than national averages. With such large wealth in the area, most divorces may qualify as a high-income divorce and have many impacts on those going through the process, these can include:

• Tax implications. Taxes play a major role in high-net-worth divorces. This is an important consideration, as they can impact either party’s future wealth during asset division, if they may need to pay capital gains tax or have early withdrawal penalties that chew into their funds.
• Spousal support or alimony. Depending on the length of the marriage and the disparity between the incomes of the spouses, spousal support may be required during or after your high-income divorce.
• Child support. The court will rule in the best interest of the child when it comes to child custody and support matters. It is important that the child has the same lifestyle and standard of living as they did during the marriage.
• Privacy concerns. For high-profile couples like celebrities and business owners in San Jose, privacy can be a major concern, as they want to keep their financial details away from the public eye.

It’s important to hire a divorce lawyer who can help you navigate this very complex and private matter. Not all divorce lawyers are prepared to handle cases with complex assets that require valuations and in-depth financial investigations. Our team at the Law Offices of Rod Firoozye has helped hundreds of clients in high-income divorces achieve fair and just asset divisions.

FAQs

Can You Challenge the Value Assigned to an Asset During Division?

Yes, you can challenge the value assigned to an asset during the division. Asset valuation is very important for the fair and equitable division of both assets and property. To challenge an asset’s value, you will need to present evidence supporting the change. This may require an expert’s second opinion or the help of a forensic accountant to perform a complete evaluation of the asset

What Is the Biggest Mistake During a Divorce in California?

The biggest mistake either party can make during a divorce in California is allowing emotions to take over and drive the legal decision-making. This can lead to expense and time consuming litigations, unequal settlements, and increased stress on both parties.

In high-income divorces, it is very important to be honest about all property and accounts. Having hidden assets is a major mistake made during these divorces, which can cause great harm to your case.

What Makes a Divorce Settlement Offer Fair in a High-Income Divorce?

During a high-income divorce, a fair settlement includes an accurate and expert-investigated valuation of assets. Any spousal support or child support awarded should go toward maintaining a similar standard of living. Divorce settlements involve addressing tax implications and taking them into account when dividing assets.

What Assets Are Not Included in a Divorce in California?

In California, assets that are not included in a divorce are separate property. These are assets owned prior to the marriage, such as gifts or inheritance received by only one spouse. This also includes any earnings after the date of separation. Financial records must exist to prove that these assets have remained separate throughout the marriage and that no commingling of funds took place.

Hire a Divorce Lawyer

If you are facing a high-income divorce in San Jose, look no further than the Law Offices of Rod Firoozye for your legal representation. With nearly 30 years of experience helping clients throughout Silicon Valley in divorces involving complex asset and property division, our office has a track record for reaching fair settlements.

Contact us today to schedule a consultation with a divorce attorney and find out more about what makes high-income divorce cases different in San Jose.