Why Must Jessica Alba Part With Over $8 Million As Part Of Her Divorce Settlement?

Cash Warren and Jessica Alba’s split has come with hefty payments that go both ways. Any investments, work, and ventures that the duo had begun during their marriage will be split between them, as a California judge signed off on.

Given that the duo were together for 16 years and shared three minor children between them, they had spousal and custodial rights and benefits that also had to be settled between the duo. However, given that both parties are financially adept and the courts have likely found that they can provide for their children independently, both were able to waive child support and spousal support.

This begs the question as to why Jessica Alba is having to shell out $8 million towards Cash Warren in the wake of their divorce.

Out of the fifty states that the United States has, only 9 are community property states. California is one of them. This means that in these states, married couples are looked at as a single economic entity, with incomes, ventures, and investments made during the marriage being attributed to both.

Alba and Warren shared a 16-year-long marriage, which constituted it as a long-term marriage under California Law (which states that any marriage that has lasted beyond 10 years falls in the category).

Everything from wages to marital homes to other assets acquired by the couple while they were married is covered under the law as being community property. The $8 million that Alba is expected to pay likely represents a buyout of assets that would become the property of Alba alone, with Warren receiving monetary compensation as part of the settlement.

The Honest Company was a venture that Jessica Alba co-founded in 2011, while she was married to Cash Warren. This, under the law, would mean that Alba would have to split the share that she has had with Warren. Similarly, any ventures that Warren, in any capacity, has started over the course of their marriage will see residuals go to Alba. Alba’s own films that she starred in during the marriage are also not exempt from the law.

As for their children, neither party has opted for child support. The court has ruled, as reported by Hello Magazine, that “In exercising joint legal custody, the Parties shall share the right and responsibility to make decisions relating to the health, education, and welfare of the minor children, excluding ordinary, day-to-day decisions (which shall be made by the Party with physical custody of the minor children at the time).”