Divorce is never easy, but when a couple has significant assets, things can get intense. High-net-worth divorces in Michigan require strategic planning to ensure wealth is protected, assets are evenly divided, and your financial future remains secure. Whether you’re a business owner, doctor, or executive, here’s what you should know about safeguarding your wealth during a divorce.
Know What’s Considered Marital vs. Separate Property
Michigan is an equitable distribution state, which means marital assets aren’t necessarily split 50/50 but divided in a way the court deems fair. Note marital property includes income, investments, real estate, pensions, and other assets acquired during the marriage. Assets acquired before the marriage, through sole gift or inheritance, or never commingled with marital property are considered separate property.
Remember marital property includes debts accrued during the marriage, like mortgages, auto leases, real estate taxes, and more.
Protect Your Business from Going Under
If you are the sole owner of a company or professional practice (such as a dental or medical practice), the following can help you protect your business in the event of a divorce:
- Business Valuations – A professional valuation provides you with a fair assessment of your business’s worth and helps prevent disputes.
- Buy-Sell Agreements – A well-structured buy-sell agreement with business partners prevents a divorcing spouse from claiming ownership or interfering in operations.
- Prenuptial or Postnuptial Agreements – These contracts can clarify how business assets will be handled in a divorce.
Protect Your Retirement and Investment Accounts
Retirement funds and investment portfolios are often among the most valuable assets in a high-net-worth divorce. There are several strategies you can use to protect them, such as:
- Qualified Domestic Relations Orders (QDRO) – These court-ordered decrees might allow you to divide retirement funds without penalties.
- Surrender Charges – Individual Retirement Accounts (IRAs), 401(k)s, military pensions, and other accounts have different rules for division or liquidation. You could avoid these charges depending on your age, spouse’s age, or financial situation.
- Negotiating Offsets – Instead of dividing retirement accounts, you could keep them intact by offering other assets in exchange, such as the family home.
Be Careful of Hidden Assets and Tax Implications
High-net-worth divorces often involve complex financial structures, investment properties, and stocks. Michigan courts require both parties to disclose their assets fully in order to ensure a fair outcome. A high-asset divorce attorney can protect your financial best interests by working with forensic accountants to uncover hidden assets and financial planners to forecast potential tax burdens.
Your Wealth Deserves the Right Legal Protection
At Eisenberg & Spilman, PLLC, we understand the complexities of high-net-worth divorces and each case is unique. Our attorneys have extensive experience representing doctors and executives navigating divorce. Laura Eisenberg and Amy Spilman are members of the American Academy of Matrimonial Lawyers (AAML) and pride themselves on charging fairly for their services. Laura Eisenberg is a highly experienced mediator who frequently resolves custody and complex marital estates.
Protecting your assets in a high-net-worth divorce starts by hiring the right legal team. For a confidential consultation, contact Eisenberg & Spilman, PLLC, today.