Married couples in Minnesota tend to accumulate quite a significant amount of marital assets over the years. Dividing property during a divorce can be a challenge, especially when there are complicated or easily overlooked assets. In a high asset divorce, identifying these assets is an important part of the process.
Review trusts and beneficiary designations
Income and physical assets are generally the primary focus during asset division. While this is understandable, hyper focusing on only these things leaves room for error. For example, revocable trusts may need to be altered or revoked altogether. Irrevocable trusts should also be clearly addressed, as neglecting trusts and beneficiary designations often results in an inequitable division of marital assets.
Think about the future
The implications of a property settlement tend to be long reaching, yet many people focus on the apparent immediate impact. This is why some may consider one spouse taking $1 million in cash while the other keeps a $1 million home to be an equal split. In reality these are two very different assets with different long-term implications because:
- The cash can be spent immediately
- The home comes up with upkeep costs
- Capital gains tax may come into play if the home is sold
Complex assets rarely have one-to-one counterparts during divorce. A high asset divorce can have a number of these types of assets, including both revocable and irrevocable trusts that can influence the outcome of a property settlement. Taking the time to learn how Minnesota family law might impact a divorce with these types of assets is generally well advised for those who are preparing for a divorce.