High Net Worth Divorce Lawyer in Michigan

When Michigan couples divorce, the law states that all assets and debts in their marital estate must be divided “equitably.” Inequitable distributions, the marital estate is divided based on what the court may consider fair under the circumstances, which does not always result in an even 50-50 split.

In cases involving couples with substantial assets or high net worth, the process of properly evaluating and separating the marital estate can be especially challenging. However, doing so is vitally important in securing a fair and reasonable outcome for each of the divorcing spouses.

The award-winning high-net-worth divorce attorneys of Alward Fisher have decades of experience representing Michigan divorce clients in a variety of challenging cases, including those involving high-net-worth couples. As a full-service firm, we often work with clients whose divorces involve businesses, trusts, and complex estate plans. If you are considering or are in the midst of a high net-worth divorce, we have the resources and experience to provide the comprehensive legal representation you deserve.

To discuss your situation with our professional high-net-worth divorce lawyers in Traverse City, contact us today.

Important Considerations in High Net-Worth Divorces

High net worth divorces tend to involve many unique considerations regarding:

• Property division ─ In a Michigan divorce case, a property is classified as either marital property or separate property. Generally speaking, marital property is any property obtained by one or both spouses during marriage, while separate property is any property obtained separately by either spouse before or after marriage. Some exceptions exist.

Separate property is not usually subject to equitable distribution in divorce. However, if one spouse has significantly more assets or a greater net worth, a judge may order that spouse to surrender separate property to the other spouse to ensure the settlement is fair. Separate property may also change hands if it is “commingled” with marital property, or the other spouse contributes value to the separate property during the marriage.

• Spousal support ─ If both spouses in a high net-worth marriage earn substantial incomes, the courts are less likely to approve requests for spousal support. However, if there is a large disparity between the income or earning capacity of the spouses, the lower-earning spouse may be entitled to support.
• Child support ─ Children of high net-worth parents tend to be accustomed to a certain quality of life. When judges determine child support payments, they consider the best interests of the child and each parent’s ability to pay. As a result, child support obligations are often higher in high net-worth divorce cases.
• Prenuptial agreements ─ Prenuptial agreements are common when one or both spouses in a marriage have a high net worth. While Michigan judges recognize the legal validity of a prenup, they can also refuse to enforce a prenup’s terms if either spouse demonstrates the prenup is unfair or was not signed voluntarily.

Accounting for All Assets in a Complex Divorce

A high net worth divorce typically involves a greater number and variety of valuable and complex assets. To ensure an equitable distribution in a high-asset divorce case, a couple must account for all of the following types of assets:

• Business assets ─ Businesses and any assets of the businesses owned by either spouse, including any accounts receivable, are considered assets. This could include commercial property, company vehicles, office fixtures and furniture, technological equipment, and even intellectual property.
• Inheritance ─ Generally speaking, when an inheritance is intended solely for one spouse, it is considered a separate asset. However, a Michigan judge could divide individually inherited assets if they are commingled with marital assets or if the division is necessary to maintain the other spouse’s standard of living.
• Retirement accounts ─ Any portion of a 401(k), IRA, or other retirement account earned during a marriage is considered marital property and therefore subject to division in divorce. Retirement funds earned prior to marriage are considered separate property, but any interest or gains accumulated during marriage are not.
• Pensions ─ Under Michigan divorce law, pension benefits earned during a marriage are assets that may be divided in a divorce. If one spouse earned substantial pension benefits before marriage, courts may compare their years of employment to the duration of the marriage to determine an equitable division.
• Investments ─ When the courts estimate the value of your investments, they will consider both the current value and the possible future value after appreciation. Valuation can become more complicated when investments include things like professional licenses or business shares.
• Offshore accounts ─ Property division can be particularly difficult if either spouse has offshore accounts or overseas assets. International privacy and tax laws often present unique challenges, and things become especially delicate if either spouse has international assets hidden or protected.
• Multiple homes or income properties ─ If a high net-worth couple acquires real estate properties during their marriage, those properties are subject to the same equitable division rules as other assets. Judges may also order spouses to surrender separate properties in the interest of equitable division.
• Automobiles ─ Automobiles, boats, and other vehicles obtained during the marriage are marital assets subject to equitable division rules. Automobiles are also high-value assets that are easy to move or hide, so high net-worth couples should be sure to catalog thoroughly all jointly owned automobiles in divorce.
• Jewelry ─ If one spouse uses income they earned during marriage to purchase jewelry for themselves or the other spouse, the jewelry is considered marital property and subject to division. However, if one party inherits or receives a gift of jewelry, the jewelry may be considered separate property instead.
• Artwork ─ Many high-net-worth couples own expensive artwork, antiques, or collections. In addition to being extremely valuable, these assets tend to be smaller and easier for one spouse to conceal. It’s usually best to account for these assets as early on as possible in divorce proceedings.

Experts We May Work With, In High Net-Worth Divorce Cases

Due to the complexity of many high net-worth divorces, our firm often works with highly trained expert witnesses. These are people with professional knowledge, skills, or experience in a particular field, such as:

• Forensic accountants ─ A forensic accountant can investigate discrepancies in either spouse’s financial statement, identify joint assets and liabilities, locate and appraise assets, and evaluate business assets or holdings.
• Real estate appraisers ─ When a high net worth divorce involves significant real estate property, it’s important to obtain accurate estimates of property values. Each spouse should hire his or her own real estate appraiser to ensure all marital real estate is classified and valued appropriately.
• Antiques, jewelry, and art appraisers ─ If a high net-worth couple acquires substantial amounts of jewelry, artwork, or antiques during the marriage, they may be required to split these assets. Professional appraisers can help determine the likely value and appreciation of these unique assets.
• Medical experts ─ Physicians, psychiatrists, and other medical experts can provide professional opinions regarding each spouse’s ability to work and support themselves. Pediatricians can also work with children of high net-worth couples to determine whether parents are capable of providing for each child’s unique medical needs.
• Vocational experts ─ Attorneys may call upon vocational experts for information about each spouse’s ability to maintain gainful employment. Vocational experts consider factors such as each spouse’s physical abilities, age, marketable skills, education, and work history both inside and outside the home.
• Custody evaluators ─ When custody issues arise in high net-worth divorce cases, attorneys sometimes work with custody evaluators. These experts may include social workers, psychologists, and school comparison specialists who can speak to the child’s best interests.

How Our High Net Worth Divorce Lawyers Can Help You

High-asset spouses in Michigan can benefit from the strategic help of an attorney who has experience handling such cases. The knowledgeable high net-worth divorce attorneys of Alward Fisher can help you:

• Identify, classify, and value all properties, assets, and investments to determine whether each item is considered separate or marital property
• Track down hidden assets, including overseas accounts, international real estate, and smaller high-value items
• Develop a fair and equitable strategy for dividing substantial assets, multiple real estate properties, or complicated investments
• Value business assets, such as ownership shares, commercial real estate, and physical property to divide fairly between each spouse
• Consider the tax implications for different decisions regarding property division or support payments, and work to reduce or eliminate possible tax obligations

Talk to a High Net Worth Divorce Attorney in Traverse City Now

If you’re in need of savvy legal representation, the Traverse City high-net-worth divorce attorneys of Alward Fisher are here to help. Contact us today to discuss the details of your high-asset divorce with an experienced lawyer who can protect your best interests.