Divorce is never easy, but it can be especially challenging when both spouses are professionals with high incomes and assets. In Michigan, a high asset divorce is when there is $1 million or more in liquid assets, and there is a large amount of property and other assets.
Complexity Of High-Asset Divorces
High-asset divorces can involve complex issues, like valuing and dividing businesses, professional practices, stocks, retirement accounts, real estate and other assets. In addition, family law courts must determine spousal support and child support based on the spouses’ incomes and lifestyles. Lawyers and courts also must protect separate property that one spouse brought into the marriage or inherited during the marriage.
Sometimes, spouses must find and disclose hidden assets or debts that one spouse may have concealed from the other. Negotiating a prenuptial or postnuptial agreement that outlines how the assets will be distributed in case of divorce is also common with high-asset couples.
How Do Professionals Protect You Interests?
If you are a professional facing a high asset divorce in Michigan, you need to take some steps to safeguard your financial future. Some of these steps include working with experts, such as accountants, appraisers, financial planners and tax advisors who can help you value your assets and liabilities accurately. Gather all the documentation related to your income, expenses, assets and debts, such as tax returns, bank statements, pay stubs, business records, property deeds, etc.
Track your marital expenses and income to establish a baseline for your standard of living and your contribution to the marital estate. Avoid any major changes in your financial situation, such as selling or transferring assets, spending excessively, changing beneficiaries or taking on new debts.
What Are Some Of The Benefits Of A High Asset Divorce?
While a high asset divorce can be stressful and complicated, it can also have some advantages for professionals. Some of these benefits are that you have more resources and flexibility to create a customized settlement that suits your needs and goals. You can use your professional skills and knowledge to negotiate effectively and creatively. You can also benefit from tax deductions and credits that may apply to your situation.
A high asset divorce between professionals is different than a normal divorce in Michigan because it involves more complex issues and more significant consequences. However, with proper planning, guidance and representation, you can achieve a fair and favorable outcome that protects your interests and preserves your future.