Introduction
Not all divorces are created equal. While every divorce involves the emotional and financial complexities of ending a relationship, some cases carry significantly higher stakes — especially when large sums of money or valuable assets are involved. These are known as high-asset divorces, and they require specialized legal strategy.
But what exactly qualifies as a high-asset divorce in Minnesota? How is it different from a typical case? And how can you protect your financial future if you’re involved in one?
At Martine Law, we help clients across Minnesota navigate the challenges of high-asset divorce with clarity, precision, and care. In this guide, we break down when a divorce is considered high-asset and what to expect during the process.
What Is a High-Asset Divorce?
A high-asset divorce generally refers to any divorce where the couple’s combined assets are worth $1 million or more. However, the definition can vary depending on:
- The complexity of the assets (e.g., businesses, trusts, stocks, investments)
- The types of income involved (e.g., executive compensation, passive income)
- The tax and financial implications of property division
Even if your net worth is slightly below $1 million, your divorce might still be considered “high-asset” if it involves complicated property or financial issues.
Common Assets Involved in High-Asset Divorces
High-asset divorces often include a wide range of property types and financial holdings, such as:
- Real estate: Primary homes, vacation properties, investment properties
- Businesses and professional practices: Sole proprietorships, LLCs, partnerships
- Retirement accounts: 401(k), IRAs, pensions
- Investment portfolios: Stocks, bonds, mutual funds, crypto assets
- Executive compensation: Stock options, deferred compensation, bonuses
- Trusts and inheritances: Especially if they’ve been commingled with marital funds
- Luxury assets: Cars, art, jewelry, collectibles, and more
The more diverse and valuable the assets, the more complex the divorce becomes.
Minnesota Is an Equitable Distribution State
In Minnesota, divorce courts follow the principle of equitable distribution. This means marital property is divided fairly, though not necessarily equally. In high-asset divorces, this can lead to more nuanced and strategic negotiations.
Key considerations include:
- When the asset was acquired
- Whether it’s marital or non-marital property
- Whether there was a prenuptial or postnuptial agreement
- Each spouse’s contribution to the marriage and to the acquisition of wealth
If any of the assets were acquired before the marriage or inherited individually, they may be classified as non-marital property — though any increase in their value during the marriage could still be subject to division.
Learn more about property division in Minnesota divorces.
Challenges Unique to High-Asset Divorces
High-asset divorces involve specific legal and financial hurdles, including:
1. Valuation Disputes
Businesses, real estate, and investment portfolios often require independent valuation experts. Disagreements over asset value are common and can lead to prolonged litigation.
2. Hidden Assets
One party may attempt to conceal or underreport income or assets. Your attorney may need to work with forensic accountants to uncover offshore accounts, shell companies, or asset transfers.
3. Tax Complications
Selling or dividing large assets may trigger significant tax consequences. Careful planning is needed to avoid penalties and manage post-divorce finances.
4. Pre- or Postnuptial Agreements
If a prenup or postnup exists, it may govern how assets are divided. However, not all agreements are enforceable — especially if they were signed under duress or lack full disclosure.
How Is Spousal Support Handled in High-Asset Cases?
In high-asset divorces, spousal maintenance (alimony) awards are often larger and more contested than in standard cases. Minnesota courts consider:
- The length of the marriage
- Each spouse’s financial need and earning capacity
- Standard of living during the marriage
- Contributions to the household (including non-financial ones)
- Age and health of both parties
Even if one spouse didn’t work during the marriage, they may still be entitled to long-term support if they contributed to the family’s success in other ways.
How to Protect Yourself in a High-Asset Divorce
If you’re going through a divorce involving substantial assets, here are a few important steps to take:
1. Hire an Experienced Attorney
This is not the time for generic legal advice. You need an attorney with experience in high-asset property division, business valuation, and forensic investigations. Contact Martine Law to get started.
2. Gather Financial Records
Start organizing tax returns, account statements, real estate deeds, retirement account info, and business documentation. The more organized you are, the stronger your case will be.
3. Consider Mediation or Collaborative Divorce
Litigation can be expensive. In many high-asset cases, both parties benefit from mediation or collaborative divorce, which allow for more control over asset division.
4. Don’t Rush to Settle
Wealthy spouses may try to rush an agreement before full disclosure has occurred. Don’t agree to anything until your legal and financial teams have fully evaluated the value of all assets.
Martine Law: Advocating for High-Asset Divorce Clients
At Martine Law, we work with financial experts, forensic accountants, and business evaluators to ensure every asset is accounted for and fairly considered.
Whether you’re the high-net-worth spouse or concerned about your financial security post-divorce, we tailor our legal strategy to your unique situation.
Frequently Asked Questions
Q: Is my business at risk in a high-asset divorce?
Yes, especially if it was started or grew significantly during the marriage. You may need to provide a buyout or offset to retain full ownership.
Q: What happens if one spouse tries to hide assets?
Hiding assets is illegal. If proven, it can lead to penalties and the hidden assets may be awarded in full to the other spouse.
Q: Can we handle this without going to court?
Yes. Mediation and negotiated settlements are common in high-asset cases and can be less public, faster, and more cost-effective.