Divorce can be extremely taxing, both financially and emotionally. If you are going through a high-asset divorce where a lot of wealth is at stake, you can overcome a great deal of stress by taking the time to research and plan your strategies.
A high net worth divorce applies to couples with complex holdings in the form of stocks, trusts, tax benefits, real estate holdings and cash in the bank. The complexity of splitting these assets makes a divorce extremely challenging. Here are a few tips that can help you go through a divorce successfully in Michigan.
Understand Michigan property division laws
While preparing for a divorce in Michigan, it is important that you understand the state’s law with respect to marital property division. Michigan is an equitable distribution state. Basically, this means that even if the couple owns much of their property jointly, the court will still take into account a number of factors when distributing the property in a manner that it considers fair to both parties.
Document all your marital property
It is vital that you have an account of all your marital property. This refers to all the assets and debts you have acquired from the date of marriage with exception of property that is expressly excluded in the prenuptial agreement or (usually) property that was acquired by one party as a gift or inheritance. While documenting the property, be sure to attach documents relating to purchases as well as any previous appraisal. Documentation helps prevent the other party from attempting to hide assets.
Explore the possibility of a property settlement agreement
A property settlement agreement allows the divorcing couple to have a say in how they wish to have marital assets divided. It also helps avoid disputes that can prolong the divorce process. An agreement can both shorten the divorce process and avoid financial losses through the cost of litigation.
Preparing for an imminent divorce is tough under any circumstances. Whether you are preparing to file the divorce or waiting to be served, getting ready is extremely important.