Financial Prep Checklist for High-Net-Worth Divorce

• Why the Court Needs This: To determine whether a business owned before or during marriage needs a formal financial valuation and whether community labor enhanced its value.
• Legal & Forensic Trigger: Pereira / Van Camp Analysis. If a business was started before marriage (separate property) but grew during marriage, California courts use two distinct formulas (Pereira for growth driven by personal effort; Van Camp for growth driven by market forces) to decide how much of the business value belongs to the spouse.
• Pro Tip for Client: Secure operating agreements immediately. Pay close attention to transfer restrictions, buy-sell triggers upon divorce, and capital call requirements.

Checklist

• [ ] Corporate organizational charts, operating agreements, and partnership contracts.
• [ ] Profit & Loss (P&L) statements and balance sheets (past 3 years).
• [ ] Valuation reports, buy-sell agreements, and capital account statements.
• [ ] Business bank and credit card statements (past 24–36 months).

Equity, Investments & Retirement

• Why the Court Needs This: Equity compensation and retirement plans are major community assets, but their tax liabilities and vesting schedules make equal division complex.
• Legal & Forensic Trigger: Nelson / Hug Vesting Formulas. Unvested stock options granted during marriage but vesting post-separation require mathematical time-rule allocation formulas (In re Marriage of Hug or In re Marriage of Nelson) to split community vs. separate portions.
• Pro Tip for Client: Do not forget the tax impact. A $1M IRA is not worth the same as $1M in liquid cash due to deferred income tax liability upon withdrawal.

Checklist

• [ ] Stock option grant letters, vesting schedules (RSUs, ISOs, NQSOs), and equity tracking logs.
• [ ] Brokerage, cryptocurrency, and managed investment account statements.
• [ ] 401(k), IRA, pension, and profit-sharing account statements (QDRO preparation records).
• [ ] Executive perks records (car allowances, club memberships, equity re-investments).

Real Estate & Physical Assets

• Why the Court Needs This: Real estate, vineyards, and high-value physical collections often carry mixed separate and community equity claims.
• Legal & Forensic Trigger: Moore / Marsden Reimbursement Claims. If one spouse owned a home prior to marriage (separate property) but community funds were used to pay down the mortgage during marriage, the community acquires a pro-rata equity interest under the Moore/Marsden rule.
• Pro Tip for Client: For rare assets (art, wine cellars, classic cars), inventory them with dated photos or video prior to serving papers, as asset substitution or misvaluation is common.

Checklist

• [ ] Deeds and titles for primary residences, vacation homes, and commercial properties.
• [ ] Mortgage statements, HELOC balances, and loan applications (shows claimed assets/income).
• [ ] Appraisals, historical purchase records, and separate property funding records (Moore/Marsden calculations).
• [ ] Inventories/appraisals of high-value personal property (art, wine collections, jewelry, vehicles).

Bank Accounts, Trusts & Separate Property

• Why the Court Needs This: California strictly presumes all property acquired during marriage is community property unless proven otherwise by clear “tracing.”
• Legal & Forensic Trigger: Commingling & Tracing Burden. If separate inheritance or pre-marital cash was deposited into a joint account, the party claiming separate ownership must provide a forensic “direct tracing” or “exhaustion” accounting to recover those funds under CA Family Code § 2640.
• Pro Tip for Client: Obtain historical bank statements going back to the date of marriage if possible. Banks often purge records older than 7 years, making tracing nearly impossible if delayed.

Checklist

• [ ] Personal checking, savings, and offshore bank account statements (past 12–24 months).
• [ ] Trust agreements (revocable/irrevocable), trustee reports, and distribution records.
• [ ] Pre-marital account statements proving separate property balances as of the date of marriage.
• [ ] Documentation of inheritances or gifts received during marriage (kept in separate accounts).

Debts & Liabilities

• Why the Court Needs This: To calculate the true net community estate and assign responsibility for pre-marital, marital, and post-separation liabilities.
• Legal & Forensic Trigger: Post-Separation Duty & Epstein Credits. Debts incurred during marriage are generally community liabilities. However, if one spouse uses separate funds to pay down community debts after separation, they may claim reimbursement under In re Marriage of Epstein.
• Pro Tip for Client: Pull a comprehensive credit report for both spouses. Unannounced joint lines of credit or personal guarantees on commercial loans must be identified early.

Checklist

• [ ] Personal loans, lines of credit, and promissory notes.
• [ ] Credit card statements for all joint and individual accounts.
• [ ] Guarantees on business debts or real estate development loans