For high net worth couples considering divorce, one of the most common and significant topics of consideration is how their property and assets will be divided. Many high value assets, like a family home, vacation home, car, boat, antiques, art, jewelry, etc. may hold emotional as well as monetary value for one or both spouses. Other assets of consideration may include owned businesses, investment holdings, retirement accounts, and debt.

In order to understand how assets are divided in Wisconsin divorce, it’s key to understand that Wisconsin is what’s known as a community property or marital property state.

Marital Property vs. Individual Property

Wisconsin is a marital property state, meaning that, when a couple living in Wisconsin decides to divorce, property and debt acquired after a specified determination date (usually the date of marriage) are divided equally no matter whose name appears on the title, with some exceptions and caveats.

The term property can be interpreted to mean anything bought, earned, or acquired during the course of the marriage – homes, vehicles, antiques, jewelry, investments, businesses, etc.

Any debt acquired during the course of the marriage is also subject to equal division, even if it was incurred by only one spouse.

Individual or separate property is that which was acquired by an individual before they were married, or received as a gift or inheritance during the course of the marriage. This type of property is not divided during divorce unless it has been commingled, thereby becoming marital property. An example of individual property that becomes commingled is a home purchased by one spouse before the date of marriage that is then fixed up and invested in by both spouses so it increases in value during the course of the marriage. In all likelihood, the court would deem this home marital property, even though one spouse purchased it before the date of marriage and it is only their name on the title.

The Reality of Asset Division in Divorce

When it comes to assets like houses and cars, it’s not physically possible to split them in half and give each spouse an equal piece. Instead, the court takes into account the total value of all assets and debts to make a distribution judgement.

In addition to the total monetary value of all assets and debts, the court takes into account a number of factors that may necessitate one spouse receiving a certain asset or differing amount than the other, like:

• Duration of the marriage.
• Future earning potential of each spouse.
• Whether one spouse has significant individual property.
• Unpaid labor contributed during the course of the marriage, such as childcare and housekeeping.
• Who will have financial responsibility for children moving forward.
• Whether one spouse contributed in a significant way to the future earning potential of the other, such as paying for education or foregoing their own income to take care of children so the other could work.
• Stipulations outlined in pre- and postnuptial agreements, as long as the court deems them fair.
• The health of each spouse.
• Tax implications for each spouse.

An example: the court may determine that the spouse who will have primary custody of the children will be awarded the house, with an agreement that when the children reach the age of maturity the house will be sold and the value split evenly between the spouses.

A key step in the process of property division in divorce is valuation of all marital property. This is achieved by both spouses disclosing the value of all accounts and investments they hold, and investigations done by professional actuaries and appraisers on items without an evident dollar value, like a home, car, or antique. The divorcing spouses cover the costs of these professional valuations.

Emotions, Stress, & Asset Division 

As we all know, many things we own hold so much more than monetary value. A family home is filled with memories, a nurtured business with dreams and aspirations for the future. Antiques and collectibles may mean much more than their sticker price to one spouse, while the other sees them as uninteresting relics. Asset division in divorce can be an emotional process for both parties, but having an experienced divorce attorney on your team can help lessen the stress.

High net worth clients like you need a divorce attorney with experience, compassion, and a collaborative mindset. Attorney Odalo Ohiku knows that divorce is a highly complex process, particularly for those with substantial assets, and works diligently to ease the emotional strain of the process not only for the client, but for all involved.

Odalo Ohiku is the Milwaukee divorce attorney you want on your team. The Ohiku Law Office offers a wide variety of services, including custody and placement, dispute resolution, divorce mediation, and more. Give our offices a call today with questions or to schedule a consultation.