High-Asset (High-Net-Worth Value) Divorces

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, cabins, land, 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, luxury vehicles, private jets, etc.

Challenges in High-Net-Worth Divorce Cases

1. Complex Property Division

Minnesota follows equitable distribution principles, meaning assets and debts are divided fairly, not necessarily equally. Property division requires a complete calculation of the fair market value of each asset and debt incurred by the parties during the marriage regardless of who carries the title to such property. In addition, when either party asserts a non-marital claim in the asset or debt, the party making the claim is required to provide proof of the non-marital nature of the asset or debt. Valuation of assets and debts typically involve experts such as accountants, forensic accountants, appraisers, certified business valuators, certified financial planners, and other experts tasked with determining fair market value of the marital property and non-marital claims raised.

Each expert can be a neutral or non-neutral. Neutral experts are those the parties agree to retain for valuations and/or appraisals. Non-neutral evaluators are those hired by one spouse to perform their own valuation or review a neutral’s evaluation report independently.

Sometimes high asset/high net worth matters include claims of dissipation where one spouse “wastes” marital assets or incurs excessive marital debt during the dissolution process. Where dissipation is concerned, property may be divided more favorably to the spouse who did not “waste” or dispose of property.

2. Business Valuation & Division

If you or your spouse own a business, your spouse may be entitled to a portion of the value of the business regardless of any contributions made directly to the business. In Minnesota, the presumption includes the notion that both spouses made contributions to the marriage that created value for the business regardless of the amount of actual effort contributed.

3. Hidden Assets & Forensic Accounting

In Minnesota, complete disclosure and valuation of marital property (all assets and debts acquired during the marriage) is necessary. The idea that “what’s mine is mine and yours is yours” does not prevail in a marriages absent a valid and enforceable pre-nuptial or post-nuptial agreement or for assets or debts that constitute non-marital property. Instead, Minnesota presumes all assets and debts (except non-marital property) acquired during the marriage are marital property regardless of who holds title even if a spouse maintains separate accounts, debts, or titles to assets post marriage.

The process of a dissolution of marriage in Minnesota requires both parties be completely transparent on all assets and debts held regardless of ownership. A spouse may attempt to hide assets for years prior to the dissolution of marriage. Often, the dissolution of marriage is the first time a spouse discovers difficult hidden truths about the other spouse, which may stir further emotional pain from feelings of distrust or betrayal. 

During the dissolution of marriage process, when the other spouse attempts to conceal assets and debts by failing to provide documents (discovery) or refusing disclosure in good faith, the court may make findings against that spouse including contempt, sanction, penalties, or other disciplinary actions intended to bring about compliance.

When a spouse simply has too many assets or debts to track, it may be helpful to obtain additional expert support with accountants who can help trace accounts, offshore investments, and additional income sources.

The method of obtaining information begins with discovery and research in bank statements for transactions, tax returns, and other documents necessary to help find assets and debts. Cases involving hidden assets can subject a party to penalties, findings of fraud, or re-opening of a divorce for further consideration.

4. Spousal Maintenance (Alimony) Considerations

In high-asset/high net worth value divorces, spousal maintenance (alimony) can be a source of contention. There are two types of spousal maintenance: transitional or indefinite spousal maintenance. Transitional spousal maintenance is designed for shorter term marriages lasting generally between 5-10 years. Transitional support is typically to provide one spouse financial relief to re-train or receive additional education and certifications to find gainful employment post-dissolution. Indefinite spousal maintenance is considered generally in marriages lasting longer than 10 years and can last indefinitely unless there is a substantial change in circumstances necessitating modification of spousal maintenance. Under both transitional and indefinite spousal maintenance, Courts can generally consider:

  • standard of living during the marriage,

  • each spouses’ monthly budget to determine need for spousal maintenance and ability to pay, and

  • property settlement absent 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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