A high-asset divorce can involve much more than deciding who keeps the house. A marriage may include a business, retirement accounts, investments, real estate and other substantial assets.
Minnesota courts divide marital property in a “just and equitable” manner. The law allows courts to consider factors such as each spouse’s income, assets, liabilities, needs and contributions to the marriage.
Here are three ways to prepare with your long-term interests and goals in mind:
1. Define your priorities before negotiating
Start by identifying the outcomes that matter most to you. You may want to keep the family home, preserve retirement assets, protect a business interest or maintain a certain standard of living. You may also place more value on reducing debt or keeping enough liquid assets to manage expenses after divorce.
Then separate your long-term priorities from assets that simply carry emotional significance. A valuable asset may seem worth keeping but could also come with substantial taxes, debt or maintenance costs. Another asset may have less emotional value but provide more financial stability.
Creating a clear priority list can help you decide where you can compromise and where you should take a firmer position.
2. Build a complete financial picture
High-asset divorces may involve privately held businesses, stock options, executive compensation and deferred compensation. These assets can require specialized valuation or a forensic accountant.
Commingling can further complicate property division. A premarital business or investment may have gained value during the marriage or mixed with marital funds. In Minnesota, that appreciation may factor into the marital property analysis, even if the business began before the marriage.
Gather financial records and determine how each asset was acquired, valued and used during the marriage. This information can help you evaluate what you may have a claim to receive.
3. Evaluate the outcome beyond the settlement amount
The settlement with the highest dollar value does not always produce the best outcome. Consider taxes, debt, liquidity, future income and the ongoing costs of maintaining each asset.
For example, keeping a valuable home may initially seem like the strongest financial choice. However, the mortgage, property taxes and maintenance expenses could reduce its value to you over time. A different combination of assets may provide more flexibility and financial security after divorce.
Consider the life you want to build after divorce and evaluate each proposed settlement against those goals.
Keep your long-term interests in focus
A high-asset divorce involves more than dividing valuable property. Your financial needs, personal priorities and plans for the future should shape how you approach each decision. A Minnesota divorce attorney can explain your options, assess the issues involved and help you pursue an outcome that reflects what matters to you. Seeking legal guidance early can help you understand your position and make informed decisions throughout the divorce process.