Michigan High-Asset Divorce Lawyer
Are you considering a divorce in Michigan? The end of a marriage can be complicated and stressful under any circumstances, but it can be especially complex when there are considerable assets or money at stake.
You need an experienced attorney who understands the challenges of a high-asset divorce in Michigan and knows how to advocate for your interests effectively. That is why you should contact Kraayeveld Family Law immediately. A Michigan high-asset divorce lawyer with our firm can review your situation, advise you on the issues to be resolved, and handle your case on your behalf.
Contact us or call (616) 383-2679 today to schedule your initial consultation with a Michigan high-asset divorce attorney at our law firm. Our office is conveniently located at 990 Monroe Ave. NW Grand Rapids, MI. Feel free to visit us for a case evaluation!
How Kraayeveld Family Law Can Help with Michigan High-Asset Divorces
The legal team at Kraayeveld Family Law has established a reputation among our legal peers and clients for providing devoted representation in family law cases. We strive to live up to our core values of tenacious litigation, full effort, honesty, and service to others.
We stand ready to help you by:
- Reviewing your financial documents to understand the extent of your marital assets
- Discussing your needs and goals with you
- Determining a tailored strategy for your case
- Evaluating your legal options
- Retaining the best valuation experts in the industry
- Advising you on making informed decisions
- Vigorously advocating for your interests at the negotiating table or in court
As one client wrote about their experiences with our firm:
“The staff at Kraayeveld Family Law provided great comfort and clarity to me during an otherwise challenging divorce. The team is great to work with and very knowledgeable, as well as quick to respond to questions as they come up!”
Unique Challenges in High-Asset Divorces in Michigan
Michigan high-asset divorces involve certain unique challenges, including:
- Valuations of complex assets – In high-asset divorces, couples may own various complex or high-value assets, including business ownership interests, investments in startups or emerging companies, and real estate portfolios. As a result, dividing the assets between spouses will require obtaining valuations to determine the value allocated to each spouse in property division. Spouses may need to hire expert appraisers to assist them and the court in determining the value of an asset.
- Disputes over property division – Michigan divorce law requires courts to divide marital property equitably, which means the court must determine a fair split of assets. However, a fair split may not necessarily mean an exactly even division of marital property.
- Hidden or undisclosed assets – Some high-asset divorces involve claims of a spouse concealing or failing to disclose assets. Someone may hide assets to avoid splitting them with their spouse in divorce or obtain a more favorable property division or lower child or spousal support obligations. When an individual conceals assets during a divorce, their spouse may need to retain expert forensic accountants who can identify and locate hidden assets. The accountants can track those assets through bank accounts, fraudulent transfers, or offshore trusts, for example.
- Disparities in earning capacities – Some high-net-worth couples have a significant earning disparity between the spouses, especially when one spouse deferred educational or professional advancement to support their spouse’s professional or business success. Such disparities may lead to lower-earning spouses asserting claims for alimony or spousal support to help them maintain a standard of living while pursuing re-entry to the workforce.
- Tax implications – Various solutions for resolving financial issues in a high-asset divorce will have different tax consequences. For example, selling high-value assets to divide the proceeds between spouses may trigger capital gains taxes that can reduce the value of the asset. Similarly, dividing assets like retirement accounts, stock options, or deferred compensation may have complex tax implications. As a result, couples in high-asset divorces need legal counsel familiar with the tax consequences of the resolutions of issues in high-asset divorces.
How Are Retirement Accounts Handled in Divorce Proceedings?
High-asset divorces frequently involve substantial retirement accounts. A retirement account may qualify as a marital asset if a spouse opened the account during their marriage. Moreover, the contributions and growth of an account opened by one spouse prior to their marriage may also qualify as a marital asset subject to division in divorce.
However, an account holder cannot withdraw funds from tax-advantaged retirement accounts prior to retirement to provide a marital share to their spouse without incurring significant tax penalties. To account for this, courts typically divide retirement accounts in divorce by issuing qualified domestic relations orders (QDRO).
A QDRO divides retirement accounts in a divorce by designating a former spouse as an alternate payee entitled to receive a portion of the benefits from the account. Once the court and the retirement account administrator approve the QDRO, the administrator will make direct payments to the former spouse from the account. A QDRO can defer payment to a former spouse to a later date if necessary to avoid tax consequences of distributing benefits from the account immediately upon divorce.
Common Mistakes to Avoid in High-Asset Divorces
Some of the most common mistakes couples make in high-asset divorces include:
- Not identifying all assets
- Failure to timely hire valuation expert(s)
- Failure to perform independent discovery
- Not accurately valuing assets
- Neglecting to consider the tax consequences of a property settlement or division
- Not updating beneficiary designations and estate plans
- Agreeing to a divorce settlement without legal representation
How Long Does a High-Net-Worth Divorce Take?
A high-asset divorce can take longer than other divorces. Dividing complex assets can extend the timeline of a divorce case. No one can predict how long a divorce of a high-net-worth couple may take.
However, the following factors could affect the timeline of a given case:
- The complexity of assets in the marital estate
- The value of marital assets
- Whether the parties dispute classifying assets as marital or separate property
- Whether the couple has a prenuptial or postnuptial agreement
- Whether a spouse has hidden or failed to disclose assets
- Whether the couple has negotiated a property or divorce settlement before filing for divorce
High-asset divorces in which couples do not have a prenuptial, postnuptial, or settlement agreement could take up to a year to settle or reach a final judgment of divorce after trial.
Contact Our Michigan High-Asset Divorce Lawyers Today
Are you ending a marriage that involves considerable income and assets? If so, you need a high-asset divorce lawyer with extensive experience resolving the complicated challenges you may face.
Contact or call (616) 383-2679 Kraayeveld Family Law today for a confidential consultation with a high-asset divorce attorney. We look forward to meeting you, listening to your concerns, and devising a plan to meet your goals.