Those who go through a divorce may have concerns the other party will attempt to hide assets. Although it sounds like a plot out of a Lifetime movie, such attempts are not uncommon. People can attempt to hide assets with third-parties or with use of false documents. A recent case provides a real-life example.
Case in point: Professor tries to hide retirement assets
A prenuptial agreement protects assets in the event of a divorce. Couples that use this legal document trust the paperwork will serve its purpose. But do they always work? As recently discovered by one couple, there are situations when an individual can successfully challenge a prenuptial agreement.
Court case provides an example: Allard v. Allard and prenups in Michigan
When affluent couples divorce, there can be a lot of assumptions about the process. People often assume it will be contentious, lengthy and public, for instance. Of course, this is not always the case, but divorces where there is a lot of money at stake do tend to invite more complexity and attention.
This is perhaps why many people assume that one person will receive alimony in high-asset divorces. In fact, people might think that spousal support is reserved specifically for these cases because there is more money involved. However, like the other assumptions about these divorces, this is not necessarily true.
Engagement rings symbolize a promise for a future together. Those who purchase this piece of jewelry often have to save for months and, in some cases, take out loans to cover the costs. But what happens to the ring if one party calls off the engagement? That is the question posed in a recent case filed in federal court in Washington D.C.
Details of the case: Was the ring a gift? The case involves a couple that was living together for approximately one year. At this time, one party bought the other a 4.06 carat ring. One party offered the ring with the proposal of marriage. Acceptance of the ring was, according to the court filing, dependent upon the impending nuptials.
The term "gray divorce" refers to those who move forward with a divorce later in life. Anyone that is over the age of 50 fits into this category. These individuals bring unique issues to divorce compared to those who are going through a split in their twenties or thirties. These individuals have had time to save for retirement and build their portfolios. As a result, these individuals must address the handling of these assets carefully during divorce.
Why the special care? Those who are savvy with their finances begin saving for retirement early in life. This money compounds and can result in a significant sum as we approach retirement. Although only one spouse may put money into the account, the court often considers this asset marital property subject to division.
Divorce is a difficult enough process, and any additional complexities can be overwhelming. High-earning couples understand this well as they prepare to divide assets they amalgamated at their union.
When two partners consider dissolving their marriage, one spouse may feel less inclined to split the assets in a fair or respectful way. Hiding assets is a serious offense, and Michigan courts do not treat parties who withhold assets kindly. But how can parties know if their spouse is being deceitful?
Division of assets during divorce can result in contention. This portion of the split involves a careful review of all assets and debts. The divorcing couple must take every marital asset into consideration or else find themselves dealing with surprises after the divorce is finalized. These issues can be mitigated by knowing some common issues.
It is not uncommon for a divorce to impact one's professional life. Those that hold executive and employee positions alike can take proactive steps to reduce the impact the divorce will have on their career.
Three tips that apply to most professional situations include:
Business owners must tread carefully when it comes to the division of assets during divorce. It is very likely that some or all the business assets qualify as marital property. As such, the business could be subject to division.
When does a business or business interest qualify as marital property? Generally, state law considers businesses that begin during the marriage as marital property.
Divorce is not something to rush into. However, couples that have decided that divorce is in their best interest may be wise to move forward with proceeding sooner rather than later.
Why finalize a divorce in 2018? The short answer for why a couple should seriously consider to finalize a divorce this year? Taxes. The Tax Cuts and Jobs Act of 2017 (TCJA) has led to a number of changes to the tax code.
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