Divorce is the time when people will be making the most momentous financial decisions they are likely to do in their lifetime. Although economic conditions may be uncertain, when dividing your assets you have to think like an investor who sees an opportunity in crisis.
What’s the best way to deal with offshore assets or foreign currency in tumultuous economic times? When you work with West Coast divorce mediators, the decisions become part of a team effort to optimize your community property.
Frequently Asked Questions About International Divorce And Money
- Should I keep Assets Offshore or in the US? This is a difficult decision to make. Some assets, like real estate, will need to be appraised and sold abroad. The decision can depend on current exchange rates, tax implications and other factors such as whether you are returning to the other country to live. The decision will also be based on how you want to divide your assets. Who is getting what and does it make sense to distribute the asset in the foreign country or in the US? Unless they are moved, the assets in the foreign country will be subject to foreign laws about tax, and other laws such as retirement account rules. If you decide to go to court an extra layer of complication is added as the assets will also need to be divided according to foreign laws about property division in divorce.
- Do the courts get to say how I decide my foreign assets? US Courts don’t have the jurisdiction to divide many foreign assets in divorce. However they can value assets and order the division of US property to offset the value of foreign property. This is why it’s always better to settle your divorce outside the courts with the assistance of highly skilled West Cost divorce mediators. Going to court when you have complex international assets adds a middle man in the US courts that makes things unnecessarily complicated. The courts might divide US assets in a way that doesn’t actually reflect the true value of foreign assets. Their decisions are arbitrary and you don’t get another chance to divide your marital property in a way that suits you both.
- Should I get a divorce in the US? Generally it’s OK to divorce in the US even if you have International assets or if you married in a foreign country. After a certain period of time the state of California and other states recognize residency even if your marriage took place abroad. If you are divorcing in the US and you have foreign assets you need to take extra care during your property division. You should work with experienced divorce financial professionals who are knowledgeable about US Divorce Law, International Divorce Law and the financial impacts on your property.
- How do I assess the value of my US and international property? Assessing the value of your US and International property can be challenging and possibly contentious. One good way to reduce the possibility of conflict is to involve a neutral appraiser, rather than having two separate appraisers who could provide different estimates and cause conflict. In your divorce mediation, property valuation is done by an expert who is a trusted part of the divorce mediation team. Foreign property may be difficult to value against US property. The value of assets in the US and abroad could be in flux due to interest rate hikes and the volatility of international exchange rates. A good mediator / appraiser will try to factor in potential appreciation or depreciation of assets. Every divorce settlement should consider the current value of the assets and the future value of the assets. In the current climate, it may be particularly important to take care that divorcing spouses carefully weight the distribution of community property, so that one spouse doesn’t find themselves in a worse off condition due to the whims of the market.
Our Services and How We Can Help
We are West Coast divorce mediators, who work closely with every aspect of your divorce. During an international divorce there may be many documentation hurdles such as international service, international funds transfers, child custody documentation and much more. We work with high asset clients with complex assets involving investments, international real estate, offshore trusts, business interests and more. Our priority is to value the marital estate as thoroughly and accurately as possible and suggest smart ways of optimizing your California community property. In addition, our full service process includes documentation services so your divorce is compliant with California and International Divorce Law.
Getting an International Divorce with complex assets is one of the most important agreements about money you will make. As such we treat your divorce with the appropriate oversight and care needed to advise on how to go forward as independent individuals while making the most of your marital assets. We have offices in San Diego, CA Silicon Valley and Berkeley, CA. Please contact us to learn more about our international divorce mediation services and find out how to set up in person or remote mediation sessions tailored to your comfort and convenience.
