High-Asset/High-Net-Worth Value Divorce
What Is Considered a High-Asset Divorce?
A high-asset divorce/high-net-worth value divorce involves spouses with substantial financial resources, including:
Business ownership and/or professional practices
Real estate holdings, including vacation homes and rental properties
Investment portfolios (stocks, bonds, mutual funds)
Retirement accounts, pensions, and executive compensation packages
Trusts, inheritances, and family wealth
Valuable assets such as jewelry, art, and luxury vehicles, private air-planes, etc.
Challenges in High-Net-Worth Divorce Cases
1. Complex Property Division
Minnesota follows equitable distribution laws, meaning assets are divided fairly, though not necessarily equally. Often it requires determining the universe of marital property and subtracting non-marital claims to the property value to arrive at the amount remaining for division. In other instances, where dissipation is concerned, property may be divided more favorably to the spouse who did not “waste” or dispose of property in bad faith. Proper valuation and negotiation are key to preserving your financial future.
2. Business Valuation & Division
If you or your spouse own a business, valuation is necessary in preserving an equitable claim in the business. Often the efforts of both spouses during the marriage drive the determination of equitable division of property as it pertains to a business. It does not matter whether the spouse was not involved in the daily operation of the business. Rather the uninvolved spouse contributed to the marriage in a meaningful manner, subjecting them to an equitable share in the business in most cases.
It is critical to work with forensic accountants and financial experts to ensure accurate assessments to ascertain proper valuation of a business asset to determine a reasonable settlement to protect the business from litigation.
3. Hidden Assets & Forensic Accounting
Some spouses may attempt hiding assets from their spouse. Reliance on accountants to trace hidden accounts, offshore investments, and undisclosed income sources is critical in finding such assets. Often this begins with discovery and research in bank transactions, tax returns, and other documents necessary to help discovery key transactions to third-parties. Cases involving hidden assets can subject a party to fraud or re-opening of a divorce in later years or both.
4. Spousal Maintenance (Alimony) Considerations
In high-asset divorces, spousal maintenance (alimony) can be a major factor. There are two types of spousal maintenance: transitional or indefinite. Transitional spousal maintenance is designed for shorter term marriages lasting between 5-10 years typically to provide one spouse the ability to re-train or find gainful employment post-dissolution. Indefinite spousal maintenance is considered in marriages with duration of more than 10 years typically and can last indefinite unless there is a substantial change in circumstances necessitating modification usually. Under both transitional and indefinite spousal maintenance, Courts consider the standard of living during the marriage, the earning potential of each spouse, and ability to pay spousal maintenance.
Having an experienced attorney guide you through a high net worth value divorce is important. Contact us today to schedule a consultation to discuss your options further.
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