Are You Getting Divorced?

When you work hard to accrue enough wealth to give your family the comfortable life they deserve, you probably never pictured a divorce in your future. When divorce becomes inevitable, it can leave you feeling uncertain about your financial future. That’s understandable when popular media makes it seem like wealthy people are frequently taken advantage of during divorce proceedings, leaving them with huge alimony and child support payments that threaten to drain their assets in a matter of years.

The Law Office of Deidra Haynes is here to tell you that we will do everything we can to protect your wealth and ensure a fair divorce. We believe in equal rights for all parties involved, but we go to bat for fathers and their rights to make sure they are not taken advantage of by a system that can seem unfair.

We will attempt to answer some common questions about divorce, wealth, and how we seek a fair outcome. If you have immediate questions about divorce, call 317-785-1832 to schedule a consultation, during which we can explain your legal rights.

How Are Assets Distributed?

This is often one of the most contentious parts of divorce. Two reasons people stay in an unhealthy marriage are to protect their kids and to avoid losing the things they worked hard to earn.

Indiana divorce laws use equitable distribution to determine a fair division of wealth. This model attempts to divide assets fairly between the divorcing spouses, which may not be a 50/50 split, using a variety of measurable factors.

All property owned by both spouses is presumed to be marital property. This includes businesses, investment and banking accounts, real estate, and even certain inherited or gifted assets if they are comingled between the two. When determining a fair division, judges consider factors like each spouse’s contribution to the marriage, which includes non-financial contributions like homemaking, staying home to care for children, and supporting a partner’s career.

The judge overseeing your case will also consider the length of your marriage. When one spouse owns a majority of the assets in a longer relationship, it will affect how assets are distributed. Unequal earning power and access to financial records may lead the court to award a larger share of the estate to the less wealthy spouse. Excessive or unequal spending of marital assets, or hiding assets, can result in the courts deviating from equal division.

What are Marital Assets and Non-Marital Assets?

When assessed by the court for equitable division, assets are divided between marital and non-marital. This can sway the court’s decisions when determining the fairest way to divide assets.

Marital Assets:

  • Income earned by either spouse during the marriage.
  • Real estate purchased during the marriage
  • Retirement accounts accrued during the marriage.
  • Business interests developed or grown during the marriage.
  • Personal property, like vehicles, furniture, and household items.
  • Investment accounts funded during the marriage.
  • Bonuses, commissions, or deferred compensation earned during the marriage.

Indiana considers all property owned by either spouse to be marital, regardless of whose name is on the title. 

Non-Marital Assets:

  • Property owned by one spouse before the marriage.
  • Inheritances or gifts received by one spouse that aren’t comingled (deposited into a joint account).
  • Trust assets specifically designated as separate.
  • Personal injury awards, excluding lost wages or medical expenses awarded during the marriage.

Some states guarantee that non-marital assets are not included in equitable distribution talks during a divorce. Indiana is not one of them. This can come as a surprise to high-net-worth individuals who assume certain assets would be exempt from equitable distribution. 

What Are Hidden Assets?

Attempting to hide assets during the distribution of assets can be incredibly detrimental to your divorce. The following are considered hidden assets, and if found, the courts can punish you, even awarding 100% of the hidden assets to the innocent spouse:

  • Offshore accounts
  • Unreported income
  • Understated business valuations
  • Delaying bonuses or stock options until after your divorce
  • Transferring assets to friends or family to conceal ownership

Will a Prenuptial or Postnuptial Agreement Protect Your Assets?

Many high-net worth individuals employ prenuptial or postnuptial agreements to protect their assets from predatory divorce tactics. These agreements clarify what is considered separate property and how marital assets will be divided in the case of divorce. This is especially beneficial for protecting family businesses, real estate, investments, and inherited wealth.

Indiana courts will scrutinize these agreements to ensure they are fair, were entered into voluntarily, and finances were properly disclosed. If the courts believe a spouse was misled, it may partially or completely invalidate the agreement, exposing those assets to equitable distribution.

In short, prenuptial and postnuptial agreements can protect your assets in Indiana, but they must be carefully drafted, properly executed, and legally sound. 

Do You Need a Divorce Attorney?

Surely, you worked with an attorney while amassing your wealth. You trusted their advice when creating trusts, purchasing real estate, and expanding your business. Why wouldn’t you work with a divorce attorney to protect those assets?

Even if you aren’t getting divorced, but you are worried about protecting your assets in the event of divorce, a family law attorney can help you understand prenuptial and postnuptial agreements, draft one according to your specific circumstances, and ensure it is legally sound and will protect you should the unthinkable happen.

Call 317-785-1832 to schedule a consultation with The Law Office of Deidra Haynes to find out how our divorce and family lawyers can help you. We understand the need to protect yourself and your wealth during divorce, and our goal is to ensure that equitable division is fair, and your non-marital assets aren’t subject. Don’t risk your wealth, call today.