What Is Considered A High Net Worth Divorce?
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When a couple divorces, the law requires that all marital assets and liabilities be distributed “equitably.” Inequitable distributions occur when the marital property is divided according to what the court deems reasonable under the circumstances, which does not necessarily result in a 50-50 division.
In cases involving significant assets or a high net worth, the process of appropriately evaluating and distributing the marital estate can be quite challenging. However, doing so is critical in ensuring a fair and equitable result for each separating spouse. If you are considering or in the process of a high net worth divorce, we have the knowledge and expertise to provide you with the holistic legal representation you need.
Key Factors to Consider in High Net Worth Divorces
Property division in high net worth divorces often involves several specific concerns. Property is divided into two categories during a divorce: marital and separate. Marital property is any property acquired by one or both spouses during the marriage, while separate property is any property acquired independently by either spouse before or after marriage. There are several exceptions, however.
In most divorces, separate property is not subjected to equitable division. To obtain a fair settlement, a judge may require that spouse to relinquish separate property to the other spouse if that spouse has much more assets or a higher net worth than the other. Separate property may also be transferred if it is “commingled” with marital assets when the other spouse significantly contributes to the separate property during the marriage.
- Spousal support ─ When both spouses in a high net worth divorce have significant earnings, the courts are less likely to grant spousal support demands. If the couple’s income or earning capacity differs significantly, the lower-earning spouse may be entitled for spousal support.
- Child support ─ Children of high-income parents are used to a certain standard of living. When determining child support, judges weigh the child’s best interests as well as each parent’s capacity to pay. As a result, child support payments in high-net-worth divorce situations are frequently higher.
- Prenuptial agreements ─ When one or both partners in a marriage have a substantial net worth, prenuptial agreements are frequently used. While Michigan courts recognize the legality of a prenuptial agreement, they can also refuse to execute its provisions if a spouse shows the agreement is unjust or was not signed freely.
Accounting Assets in a High Net Worth Divorce
A high net worth divorce is more likely to entail a larger quantity and range of valued and complex assets. A spouse must account for all of the following sorts of assets to achieve equitable distribution in a high asset divorce settlement:
- Business assets
- Inheritance
- Retirement accounts
- Pension
- Investments
- Offshore accounts
- Multiple homes or income properties
- Automobiles
- Jewelry
- Artwork
Talk to a High Net Worth Divorce Attorney in Michigan Today
If you need astute legal counsel, the Michigan high net worth divorce attorneys of Goldman & Associates are here to assist you. Contact us or set up an appointment to explore the specifics of your high-asset divorce with an expert lawyer who can safeguard your best interests.