Most divorces are emotionally and financially taxing for both spouses. However, there are particular financial challenges in any high asset divorce in Michigan. The more assets a couple shares, the more battles there might be that can delay proceedings. Different types of assets in these marital estates are typically more complicated, requiring the services of skilled advisers.

One of the most challenging scenarios can be a divorce that involves a family business. If both spouses are involved in the business operations, finding a way to divide it that satisfies both parties could be tough. The business will have to be evaluated and all the assets examined before a proportional value assessment can be made. What makes it more complicated is the fact that a value must be allocated to the contribution of each spouse to the business.

Other potentially complicated issues include valuations of non-family partnerships, shared IRAs, pensions, stock options and 401(k) plans. Also, real estate, trusts and other properties that are either jointly or separately owned may require special consideration. Common mistakes in high net worth divorces include one spouse hiding assets to avoid sharing it and the other spouse neglecting to investigate possible attempts to hide assets. Such tactics can even include valuable assets that are transferred to third parties. Failure to explore the tax implications of a high asset divorce can also be detrimental.

Although any divorcing spouse in Michigan will benefit from the support and guidance of a divorce attorney, the services of an experienced lawyer are essential in a high asset divorce. A divorce attorney who is skilled in the complexities of divorces that involve substantial assets will likely have additional resources to provide further assistance. These may include financial, tax and real estate advisers. Every possible step must be taken to ensure the same post-divorce lifestyle, and having the right divorce team in his or her corner may help to achieve this.

Source: investopedia.com, “Why are high net worth divorces considered more challenging than other divorce cases?“, Accessed on Dec. 13, 2017