Navigating the process of a high net worth divorce is complex and can be extremely challenging. If you are already navigating this process, then you may already be familiar with what is unique about high net worth divorces. It requires specialized knowledge of legal, financial, and tax issues, often involving multiple entities and investments.

Whether you’re dealing with businesses, real estate holdings, or any other type of asset division issue during a high-value divorce in Milwaukee, it’s important to enlist the help of an experienced divorce attorney in Milwaukee. A knowledgeable attorney can provide guidance throughout the process, ensure a fair outcome, and assist you in protecting your rights and interests.

In this article, we’ll dive into the considerations for dividing complex assets in high net worth divorces and how enlisting the right lawyer on your side can make all the difference.

How Can a Divorce Lawyer Help?

A reputable divorce lawyer can help with various aspects of asset division during a high net worth divorce, including:

• Negotiating the division of assets with your former spouse or their attorney.
• Helping you identify and understand all potential assets.
• Analyzing and evaluating assets to ensure a fair settlement.
• Investigating any hidden or undisclosed assets.
• Crafting an appropriate asset distribution agreement that meets your needs.
• Representing your interests in court, if necessary.
• Assisting with the sale of jointly owned property and other assets.

What Assets are Subject to Division?

In Wisconsin, which is a community property state, most assets acquired during the marriage are considered marital property and are subject to division upon divorce. This includes:

• Real estate
• Businesses
• Retirement accounts
• Investments
• Personal property such as vehicles and furnishings
• Debts incurred during the marriage

However, there are exceptions to the list above based on each circumstance. For example, gifts or inheritances received by one spouse during the marriage can remain separate property, as long as they were kept separate from marital funds.

Similarly, property that one spouse brought into the marriage might remain separate property, but any increase in its value during the marriage could be considered marital property.

It’s important to note that while the presumption in Wisconsin is an equal division of assets, courts can make adjustments based on various factors, such as the duration of the marriage and each spouse’s contributions to the marriage. All of these factors are why transparency is so important during a high net worth divorce.

And always, it’s recommended to consult with a divorce attorney to understand how these rules apply to your specific situation.

How Are Assets Divided?

In high net worth divorces, dividing complex assets such as businesses, real estate, and other substantial investments involves a meticulous process. Initially, all assets owned by either spouse must be identified and classified as either separate property (owned by one spouse before the marriage or received as a gift or inheritance during the marriage), or marital property (acquired during the marriage).

The next step is to accurately evaluate these assets, which may require the assistance of financial experts or appraisers. Once the value is determined, the assets are divided equitably between the spouses.

What Happens to Business Entities?

In Wisconsin, business entities can become a complex part of property division in a divorce. If the business was established or grew in value during the marriage, it is typically considered marital property and subject to division.

Determining the value of a business for this purpose can be challenging and often requires the help of a forensic accountant or business valuation expert. Even if one spouse had no active role in the business, they may still be entitled to a share of its value.

However, dividing a business does not necessarily mean selling it. It’s possible that the spouse who is actively involved in the business could retain it, compensating the other spouse with other assets or through a payment plan.

Alternatively, the spouses could continue to co-own the business post-divorce, though this requires a high degree of cooperation.

Understanding Financial Disclosures

During a high net worth divorce, understanding financial disclosures is paramount. These disclosures provide a comprehensive overview of each spouse’s financial situation, including income, expenses, assets, and liabilities.

In high net worth divorces, these disclosures can be complex due to the variety and complexity of assets involved, such as businesses, real estate, investments, and offshore accounts. It’s not uncommon for one spouse to try to hide assets to avoid sharing them. Therefore, it may be necessary to employ forensic accountants or financial investigators to ensure full disclosure and proper valuation of assets.

Child Support and Alimony

Child support is generally determined by a statutory formula that takes into account the income of both parents, the number of children, and the custody arrangement. However, in high net worth situations, courts may deviate from the standard calculation to accommodate the child’s accustomed standard of living.

Alimony, also known as spousal support or maintenance, is not as formulaic. It is determined by things like the duration of the marriage, the earning capacity of each spouse, and yes the standard of living. In high net worth divorces, however, alimony payments can be substantial and last for many years.

What are Pre- and Post-Divorce Asset Planning Strategies?

Pre- and post-divorce asset planning strategies are crucial components of navigating high net worth divorces. Prior to a divorce, pre-divorce asset protection planning involves the use of legal tools and strategies to secure wealth and prepare for potential financial implications. This could involve understanding how assets will be divided, managing debt, and considering factors such as spousal and child support, tax implications, and retirement planning.

Post-divorce, it’s essential to follow up on any financial “loose ends” and re-evaluate your financial plan to adjust for changes in income, expenses, and assets. Organizing finances and reviewing where assets are held can also be a crucial part of this process.

Additionally, asset protection strategies might include the use of prenuptial or postnuptial agreements.

Preparing for Your High Net Worth Divorce

Navigating a high net worth divorce can be a complex endeavor, especially when it involves dividing intricate assets like businesses and real estate. It’s crucial to understand the legal and financial implications of these divisions to ensure an equitable outcome.

While this process can be overwhelming, remember that you don’t have to face it alone. Collaborating with a divorce lawyer can significantly streamline the process.

The Ohiku Law Office specializes in divorce law, child custody and placement, dispute resolution, and more for clients in the Milwaukee area. To find out if Ohiku Law can help with your high net worth divorce, contact us today.

By Attorney Odalo Ohiku, Owner of Ohiku Law Office

Attorney Odalo Ohiku is a dedicated and experienced lawyer who focuses on divorce law, family law, and custody and placement for high-net-worth individuals in the Greater Milwaukee area. A trained mediator and arbitrator, Attorney Ohiku has the skill set, experience, and perspective to help clients safeguard their interests while minimizing the stress, anxiety, and conflict that can come with divorce. Attorney Ohiku’s credentials are exemplary: he has been honored as a “Top 40 under 40” by both The American Society of Legal Advocates and The National Trial Lawyers, served as Chair of the Wisconsin State Bar Board of Governors, and earned the President Award from the Wisconsin State Bar. He is passionate about his work in safeguarding families, ensuring that they can maintain the lives they have worked hard to build.