High net worth divorces involve couples whose property has a high monetary value. These types of divorces proceed under the same legal principles and procedures but are more complicated given the nature and extent of the property to be divided. High-asset divorces are often facilitated by prenuptial or postnuptial agreements when they are applicable and have been lawfully made, but even in these situations, the terms and conditions can be successfully challenged.
Having a resourceful, experienced high net worth divorce lawyer in Minnesota is critical to a fair divorce. At Heritage Law Office, our high-asset divorce attorney in Minnesota will review your documents, property, and claims, and explain your legal options. Throughout the process, we uphold your rights and interests. Contact us today through our online form or at 414-253-8500 to learn more about high net worth divorces in Minnesota and how we can help you.
What is a High Net Worth Divorce?
Most divorces are contentious matters, with parties disputing who should get what. For couples that have assets worth a large amount of money, it can be even more complicated and litigious. These divorces are considered to be of high net worth, and the issues that must be handled in them are often far more complicated than a typical divorce.
Common Issues to Consider in High Net Worth Divorces in Minnesota
High net worth divorces generally have issues that are unique to persons with a large amount of assets. Following are some of the matters that must be considered in these divorces.
Asset Identification
The first matter to consider is marital property. This property is the subject of what's to be distributed between the parties. Different states will handle what is considered marital property in different ways, but the main issues generally center around:
- Whether or not the state is a community property or equitable distribution state
- Whether or not the parties entered into a prenuptial or postnuptial agreement
- Whether or not some or all of the assets were owned by one of the parties prior to marriage
- Whether or not the assets were inherited by one party
There may be other considerations as well, depending on the jurisdiction where the divorce occurs.
Asset Valuation
Determining the value of assets can be a complicated process involving expert valuations and opinions. These experts must have access to pertinent documentation, conduct research, and prepare a valuation or appraisal report that can be presented in court. The expert may be expected to testify in court as to how they reached the values they placed on the assets.
Valuation of assets can be particularly difficult as many of the assets are fluid, with changing value. This includes stocks and businesses whose futures are unpredictable.
Tax Considerations
Distributing property with high values can trigger a myriad of tax considerations. Often, a CPA or tax attorney will need to be brought in to determine the tax implications of certain property distributions. How the distribution will be affected by governing tax laws can affect how the parties divide the property.
Alimony
Alimony, referred to as spousal maintenance in Minnesota, is sometimes involved in high-asset divorces. Often, there may be a financially dependent spouse because one spouse has concentrated their time on growing the family's wealth while the other spent all their time raising children and caring for the home. The parties can either agree to the length of time and amount of spousal maintenance or the court will decide it.
Not So Common Issues in Minnesota High Net Worth Divorces
In most circumstances, divorces are filed as no-fault divorces. This means that the marriage is irretrievably broken or the couple has irreconcilable differences. In some cases, however, one spouse may file for a fault-based divorce to obtain a greater portion of the assets.
Some jurisdictions will consider something like adultery when determining the distribution of assets. The spouse would have to show that the adulterous spouse wasted marital property on and during the affair. The value of that waste would have to be determined and then could be compensated through asset division.
How Long Will a High Net Worth Divorce Take in Minnesota?
High net worth divorces can take a fairly long time to complete. This is mainly due to the amount of documentation and other paperwork that must be reviewed to determine exactly how much value the property owned by the couple is worth. CPAs and property valuation experts will need to review the numbers and determine asset values. Also, once that value has been established, it is likely the parties will argue over the division of the property.
There are other factors that can affect the duration of a high-asset divorce. Sometimes, accusations or suspicions of hidden assets arise, and that may take some time to investigate and discover. In other cases, prenuptial or postnuptial agreements can help make the process go smoother or hold it up, depending on any challenges to the terms and conditions or overall validity of the contract.
In sum, for a high net worth divorce, you could be looking at a minimum of one year before the divorce is finalized. In some cases, it can take years. A divorce lawyer in Minnesota with experience and resources will know what to look for and how to move the divorce along with minimum hiccups. The divorce lawyer you hire can have a real impact on your divorce and your financial interests.
Contact a High Net Worth Divorce Lawyer in Minnesota Today
Couples can spend years accumulating wealth together. When they divorce, the distribution of that wealth can become contentious, making the process harder and longer. At Heritage Law Office, our high net worth divorce attorney in Minnesota intends to uphold your rights and interests and move the divorce along as smoothly as possible. Contact us today either by using our online form or by calling our office at 414-253-8500 to schedule a free consultation.
Frequently Asked Questions (FAQs)
1. What is Considered High Net Worth in a Divorce?
In a divorce case, a high net worth typically refers to couples who have a combined value of assets and properties that significantly exceeds the norm. While there's no universal threshold, it often involves total marital assets valued at several million dollars or more. In high net worth divorces, the legal complexities escalate due to the variety and value of assets that must be divided between the parties.
2. How are High-Value Assets Divided in High Net Worth Divorces?
Assets in high net worth divorces are divided based on the principles of either community property or equitable distribution, depending on the state's laws. In Minnesota, equitable distribution is followed, meaning assets are divided in a way that is considered fair but not necessarily equal. Special considerations often include the valuation of businesses, investment portfolios, real estate, and other high-value properties.
3. What are the Tax Implications of a High Net Worth Divorce?
Divorce settlements involving large assets often have significant tax implications. When distributing high-value properties like businesses, stocks, or investment accounts, parties must consult with tax professionals to understand the capital gains tax, property transfer taxes, and other tax liabilities that may arise. Proper planning can mitigate some of these tax burdens.
4. How Long Does a High Net Worth Divorce Usually Take?
The timeframe for a high net worth divorce can vary significantly depending on several factors, such as the complexity of asset division, the willingness of both parties to negotiate, and whether there are contested issues like alimony or child custody. Generally, due to the complexities involved, a high net worth divorce can take at least a year and sometimes much longer to finalize.
5. Can a Prenuptial Agreement Speed Up a High Net Worth Divorce?
A well-crafted prenuptial or postnuptial agreement can significantly expedite the divorce process in high net worth cases. These agreements usually detail how assets should be divided and may specify alimony arrangements. However, the terms of the agreement can be challenged in court, especially if there's evidence that they were not negotiated or implemented fairly. So, while beneficial, a prenuptial agreement isn't a guaranteed quick fix.
