Comfortable, but not quite wealthy — that is what one family law expert says is the sweet spot for fighting during divorce. For California residents who are embarking on a high asset divorce that involves anywhere between $1 and $5 million in money and assets, the chances of fighting throughout the process are higher than for those who have both more and less. Although this might seem counter-intuitive, there is some evidence to back it up.
In general, $1 million gives families a sense of financial comfort, at least that is according to the Schwab Center for Financial Research. But what happens to that comfortable $1 million when it gets split up during a divorce, particularly when some of it is allocated for specific payments, like alimony or child support? Suddenly, it is not so comfortable anymore.
For this reason, upper middle class couples who have between $1 and $5 million tend to fight much more often and viciously when divorcing. Couples earning more than $5 million will probably still have enough to be comfortable after ending their marriages, so fighting over small details and certain assets is usually not worth it. Anything less, though? Whether a couple sells a home or one person gets to keep it could significantly impact their overall finances.
Divorce is an emotional process as well as a legal one, but that does not mean that couples have to let their feelings run the show. Leaving emotions out of the mix is especially important during a high asset divorce, when significant amounts of money and property are at stake. As such, individuals in California who have significant assets should consider crafting a prenuptial agreement that protects their personal interests before they walk down the aisle.