Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
In international divorce, it isn’t just about the numbers and how much you get. You also have to divide your property according to state, national and international rules. If you are a high net worth couple with a diverse asset portfolio, even if you are getting a divorce within the US, many of these assets could be subject to different rules to disburse. An international divorce will involve at least one other set of rules that you might have to navigate when dividing property that is located in different countries.
International property division: key considerations
When you are dividing international property in divorce there are a few things to be aware of that can help you understand what steps you need to take. Complex property division is influenced by any number of issues that can’t be limited to a checklist. These common issues experienced by couples getting an international divorce can help you get a grip on international property division:
International property division depends on the type of property you are dealing with
Certain types of international property are governed by laws of the foreign country, and other property may be divisible by US courts. Foreign land and real estate tends to be governed by the laws of the country where it’s located. Bank accounts and other financial investments could be divisible by US courts. It can be difficult to enforce US court orders in international courts. Because of this, international property is often exchanged for property of an equivalent value. So someone might hold on to the ownership of a home located outside the US, while paying out an equivalent sum of cash to their spouse. International trusts, such as family trusts and offshore asset protection trusts are another type of property that is difficult to divide as you first have to determine if the trust’s assets are marital property. In addition, because the trust often owns the assets rather than a spouse, a court can’t order the division of the asset. Finally, even if you are transferring property between each other rather than splitting it, the process will be determined by the laws of where the property is located. You need to work with international divorce experts to ensure you follow the process correctly.
If your divorce is conducted outside the courts you have more control over the division of your property
US courts may not always have the power to order international property division but they do have jurisdiction over the spouses themselves. Therefore US courts might order an exchange of international property between spouses. If you conduct your divorce outside the courts using international divorce mediation, you have much more control over how to divide your marital property. Rather than being subject to the decisions of a US court or attempting to divide property through a fraught negotiation between the domestic and international court system, you can choose how to divide your property in the way that suits you best, working with highly skilled international divorce mediation professionals.
Tax on your international property is impacted by your citizenship, work and residency status
Property division in divorce is a process that should be accompanied with thorough tax planning, since the division of assets in divorce causes a tax hit that can be significant. Your citizenship, residency and work status can all impact your international property division in divorce. For example non US citizens and residents won’t be able to avail of tax breaks incident to divorce when transferring US real estate, so one or both parties could take a tax hit. If you work with skilled international divorce professionals, they can guide you through the process to avail of domestic and international tax credits and exemptions that can offset any losses you may incur through dividing international property in divorce.
High level international divorce services
At Divorce Options San Diego, we are highly skilled and experienced international divorce mediators. Our West Coast divorce mediation team works with divorcing spouses who may be based in California, nationally or internationally. We work with divorcing spouses to resolve divorces that often involve complex, high asset property division of property that is located outside the US and/or out of state. These divorces benefit from a high level of attention to detail, a thorough understanding of international property division and a cooperative, strategic approach.
We offer a non-adversarial, thorough and confidential divorce process that allows divorcing spouses to optimize their community property, rather than “lawyer up” and waste their time and money in court. Our international divorce mediators have legal, financial and mathematical expertise that allows us to effectively model the legal, financial and tax impacts of your divorce decisions. We work with divorcing spouses remotely and in person. You don’t have to be in the same state or even country as your spouse to get a divorce. We mediate our divorces remotely via secure private server. If you prefer to meet with us in person, you can visit us at our offices in San Diego, CA, Berkeley, CA and Silicon Valley. Please contact us to learn more about how we can assist you with your international divorce.
