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Going through a divorce is stressful, as it not only means the end of a relationship but also a significant change in your lifestyle. And the divorce process can be even more complex and stressful for high net worth couples with liquid assets valued at over a million dollars, significant stock options, multiple real estate properties, or a shared business that is difficult to sell.
However, a high net worth divorce lawyer from Hill Crabb, LLC, can help make your divorce go as smoothly as possible. Our highly qualified team has extensive experience handling complex divorce cases and other family law disputes between high net worth individuals.
Contact our boutique law firm today to schedule a free consultation with a knowledgeable member of our legal team. We’ll walk you through what to expect from your divorce and provide guidance on how to protect your best interests.
Minnesota is an equitable division state. This means that when a couple seeks a divorce, their marital assets are divided in a way the court deems “fair,” even if not necessarily equal.
In an equal division state, marital assets are split 50/50 between the parties based on their assets’ value. However, the split may not be right down the middle in an equitable division state. Equitable division may result in a 60/40 split, or potentially an even greater disparity between the assets assigned to each party.
Notably, this asset division only applies to marital assets, also called marital property, not individual assets, also called nonmarital property. Individual assets include items a party acquired:
Marital assets generally include everything else that the parties obtain during the marriage.
Assets Subject to Division in High Net Worth Cases
High net worth divorces often include a broader range of asset types than traditional divorces. And even assets you’d expect to see in a traditional divorce, such as a family home, tend to be valued higher in these cases.
Some of the asset types that may need to be divided during a high net worth divorce include:
Due to the nature of the assets seen in high net worth divorces, it can sometimes be challenging to place a value on them. This is why it’s essential to work with a lawyer with experience handling other high net worth divorce cases who can properly evaluate your assets, such as by hiring experts to conduct thorough audits.
Stock options are an example of an asset that could require expert insight to determine its value. A financial professional may have to consider the growth of the company the stock is for and its projected value at a later date.
However, even when the value of an asset isn’t up for debate, it can still be difficult to divide between the parties of a divorce, either due to the physical nature of the asset or Minnesota’s equitable distribution law.
For example, when dividing a retirement account, your lawyer may have to consider each party’s contributions to the account, income, and future earning potential. And physical assets like real estate properties may need to be sold so the parties can split the proceeds, or they can be rented and the profits split.
Something you may not have initially considered is how a divorce can affect your taxes beyond the change from filing jointly to filing as an individual.
One of the most significant ways a high net worth divorce can affect your taxes is by increasing your capital gains tax. If you have to sell sizable assets, such as real estate properties, that income will be taxed. And if your divorce involves stock options, large investments, and other financial accounts, those can also have an effect.
In some cases, one party in the divorce may buy out the other’s ownership of shared assets, such as a business. This can affect your taxes regardless of which party you are.
For all of these reasons, it’s crucial that you speak to a qualified attorney to determine how your divorce will affect your finances going forward and the legal steps you can take to minimize those impacts.
Some divorce cases involve spousal maintenance, also known as spousal support or alimony. The court may order one party to pay maintenance to the other if there is a significant disparity between their income levels or earning potential due to a lack of education, training, or job opportunities.
For example, if one party was the primary breadwinner and the other stayed home to raise their children, the party that gave up their career to be the primary caretaker may not have the means to continue financing the lifestyle they became accustomed to during the marriage.
Spousal maintenance seeks to help the lower-earning party maintain their lifestyle to a reasonable degree post-divorce.
Calculating the Duration and Amount of Spousal Maintenance
In Minnesota, spousal maintenance can be transitional (temporary) or indefinite (permanent). The duration of the maintenance depends on the length of the marriage, as follows:
The amount of maintenance ordered depends on several factors, including:
Our high net worth divorce lawyers can assist you with your case in various ways.
We’ll help evaluate your marital assets and make sure they’re divided according to the state’s equitable division law. We’ll help you understand the tax and other financial impact the divorce may have. And we’ll put your best interests first and foremost, including seeking maintenance payments when applicable.
If you suspect your spouse is hiding assets to influence the marital property division, we can also help by hiring a forensic accountant to uncover any shady transactions.
At Hill Crabb, LLC, our lawyers have the knowledge, experience, and resources to handle even the most complex divorce cases. No matter the size of your assets or how difficult they are to divide, our team is up for the challenge and will protect your best interests along the way.
Contact our firm for a free consultation with a compassionate divorce attorney about your case. We’ll walk you through the divorce process and answer any questions you have about high net worth divorces generally or your case in particular.
