For business owners, executives, and professionals, divorce isn’t just emotionally disruptive—it can threaten the very assets that generate income, fund retirement, and support future opportunities. When a closely held business, investment portfolio, or professional practice is on the line, the stakes are fundamentally different.

High-asset divorces demand more than rough estimates and rules of thumb. Michigan courts examine not just what you own, but how and when assets were acquired, how they grew, and what role each spouse played in that growth. Small classification or valuation mistakes can translate into six- or seven-figure consequences.

Michigan is an equitable distribution state, meaning marital property is divided fairly—not automatically equally—based on the specific facts of the marriage. In high-net-worth cases, how those principles are applied to businesses, investments, and complex compensation structures often determines the outcome.

At Boroja, Bernier & Associates, we regularly help business owners, executives, and professionals throughout Oakland County, Macomb County, Wayne County, and the greater Metro Detroit area navigate complex property division. Here’s what you need to know about protecting your wealth during a high-asset divorce in Michigan.

How Michigan Divides Assets in High-Net-Worth Divorces

Michigan courts divide marital property according to equitable distribution principles outlined in MCL 552.19. Equitable doesn’t necessarily mean equal—it means fair based on the specific circumstances of your marriage.

In applying equitable distribution, Michigan courts look beyond simple account balances. Judges consider factors such as the length of the marriage, each spouse’s contributions to acquiring and growing assets (including non-financial contributions like homemaking), each party’s age, health, earning capacity, and financial circumstances, as well as the parties’ past conduct and future needs. In high-asset divorces, these factors often carry more weight than any single dollar figure because they influence how assets are divided—not just what is divided.

For business owners, this analysis becomes particularly nuanced because the court must determine what portion of the business value is actually marital property.

Many Metro Detroit couples don’t realize that assets acquired before marriage, gifts received individually, and inheritances may be considered separate property—not subject to division. However, if these assets were commingled with marital funds or both spouses contributed to their growth, the classification becomes complicated.

Michigan courts also distinguish between passive and active appreciation. Passive appreciation—growth resulting solely from market forces—may remain separate property. By contrast, appreciation driven by marital effort, marital funds, or active management during the marriage is often treated as marital property subject to division. For business owners and investors, this distinction is critical, because the increase in value during the marriage can be far more significant than the original asset itself.

Protecting Your Business During Divorce Proceedings

For entrepreneurs and business owners in Oakland County and throughout Southeast Michigan, protecting a business during divorce is often the primary concern. Your business may represent years of dedication, personal sacrifice, and financial risk. The thought of dividing it—or losing operational control—can feel overwhelming.

The first critical step is determining the business’s accurate value. Michigan courts rely on professional valuations using one or more of three primary approaches.

• The income approach examines the business’s earning potential and projects future cash flows. Valuators discount these projected earnings to present value, which works well for established, profitable businesses with predictable income.

• The market approach compares your business to similar companies that have recently sold. This method provides real-world context but requires finding truly comparable transactions, which can be challenging for unique businesses.

• The asset approach calculates the net value of all business assets minus liabilities. This method is often used for asset-heavy businesses or companies being liquidated.

In many Metro Detroit high-asset divorces, experts use multiple approaches and reconcile the results. Hiring a qualified forensic accountant or business valuator early in the process can help ensure an accurate assessment—and potentially uncover any hidden value or concerning financial patterns.

Common Strategies for Business Protection

Once valuation is complete, you have several options for addressing the business in your divorce settlement.

• A buyout arrangement allows one spouse to retain full ownership by compensating the other spouse for their share. This often involves offsetting other marital assets—such as the family home, retirement accounts, or investment portfolios—against the business value. Some spouses structure buyouts with installment payments over time when liquid assets are insufficient.

• Continued co-ownership is sometimes possible when both spouses played active roles in the business and can maintain a professional working relationship. However, this arrangement rarely succeeds when the marriage ended acrimoniously or when only one spouse was operationally involved.

• A structured sale may make sense when neither spouse can afford a buyout or when the business’s value is primarily tied to both spouses’ participation. The proceeds are then divided according to the settlement agreement.

Investment Portfolios and Retirement Assets

High-net-worth divorces in the Tri-County Area frequently involve substantial investment accounts, stock options, restricted stock units (RSUs), pensions, and retirement plans. Each asset type requires specific handling.

• Retirement accounts like 401(k)s and pensions typically require a Qualified Domestic Relations Order (QDRO) to divide them without triggering early withdrawal penalties or immediate tax consequences. QDROs must meet specific federal requirements and be approved by both the court and the plan administrator. Errors in drafting QDROs can have significant financial consequences years later.

• Stock options and RSUs present unique challenges because their value may depend on future performance or vesting schedules. Options granted during the marriage but not yet vested are often considered marital property subject to division—but calculating their value requires projecting future worth.

• Brokerage accounts and investment portfolios need careful analysis to distinguish marital contributions from separate property and to account for capital gains implications when assets are sold or transferred.

Real Estate Considerations in Metro Detroit Divorces

For many couples, the family home represents their largest single asset. In Oakland County and Wayne County, where property values vary significantly by neighborhood, accurate appraisals are essential.

You generally have three options for handling real estate. One spouse can buy out the other’s interest, either through refinancing the mortgage in their name alone or offsetting the equity against other assets. Alternatively, you can sell the property and divide the proceeds. Some couples—particularly those with children in school—choose to delay the sale temporarily while one spouse remains in the home.

Beyond the primary residence, high-asset couples often own vacation properties, rental investments, or commercial real estate. Each property requires separate valuation and strategic planning regarding division or sale.

Tax Implications You Cannot Ignore

Property division in divorce is generally tax-free under federal law—but the assets you receive may carry significantly different tax burdens when sold or withdrawn later. A business owner spouse who keeps the company while their spouse receives retirement accounts may appear to have received equal value on paper, but the after-tax reality could be quite different.

Capital gains taxes, ordinary income taxes on retirement withdrawals, depreciation recapture on real estate, and potential gift or estate tax implications all deserve careful analysis. Working with both a knowledgeable divorce attorney and a tax professional can help ensure your settlement accounts for these differences.

The Role of Forensic Accountants

In complex divorces involving businesses or substantial investments, forensic accountants provide crucial support. These professionals can trace the source of funds to distinguish marital from separate property, identify hidden assets or income, analyze lifestyle and spending patterns, value businesses and professional practices, and calculate the tax impact of various settlement scenarios.

While hiring forensic experts adds cost to the divorce process, the investment typically pays for itself many times over in high-asset cases. Overlooking hidden assets or accepting an inaccurate business valuation can cost hundreds of thousands of dollars.

Protecting Your Interests Throughout the Process

If you’re facing a high-asset divorce in Metro Detroit, taking proactive steps early can significantly impact your outcome.

• Gather comprehensive financial documentation, including tax returns, business financial statements, bank records, investment account statements, and property records. The more complete your financial picture, the better positioned you’ll be for negotiations.

• Avoid major financial changes during the divorce process. Selling assets, making large purchases, or transferring funds can create legal problems and erode trust in settlement negotiations.

• Consider your long-term financial goals rather than focusing solely on winning specific assets. The family business may carry tremendous emotional significance, but sometimes accepting other assets produces a better financial outcome overall.

Frequently Asked Questions About High-Asset Divorce in Michigan

How long does a high-asset divorce take in Michigan?

High-asset divorces in Michigan typically take 12 to 24 months to finalize, though complex cases involving business valuations or disputed assets may take longer. The minimum waiting period is 60 days without minor children or 180 days with children under MCL 552.9f, but realistic timelines for high-net-worth cases are substantially longer due to discovery, expert analysis, and negotiation.

Can I keep my business if my spouse didn’t work in it?

Yes, keeping your business is often possible even if your spouse wasn’t operationally involved. However, you’ll likely need to compensate your spouse for their share of the marital value. This can be accomplished through buyouts using other assets, structured payments, or negotiated settlements. An experienced Michigan divorce attorney can help structure an arrangement that protects your business operations.

What happens to stock options that haven’t vested yet?

Unvested stock options granted during the marriage are generally considered marital property in Michigan. Courts typically divide the “marital portion” of these options—calculated based on how much of the vesting period occurred during the marriage. The exact method of division (immediate offset, deferred distribution, or if-and-when distribution) depends on the specific circumstances and settlement negotiations.

How do courts value a professional practice like a medical or law practice?

Professional practices in Metro Detroit are typically valued using income-based approaches, with careful attention to the distinction between personal goodwill and enterprise goodwill. This distinction matters because personal goodwill—value tied to the owner’s individual reputation, skills, and client relationships—generally cannot be sold or transferred, while enterprise goodwill reflects value that would survive a change in ownership.

In high-asset divorces, this distinction can dramatically affect the amount subject to division. A valuation that improperly treats personal goodwill as divisible enterprise value can significantly overstate the marital portion of a professional practice. Experienced counsel and valuation experts focus closely on this issue, particularly in law, medical, dental, and consulting practices.

Should I hire my own forensic accountant, or can we share one?

In adversarial high-asset divorces, hiring your own forensic accountant is generally advisable. While sharing an expert reduces costs, the accountant cannot advocate for either party’s position when conflicts arise. Your own expert can thoroughly analyze your spouse’s financial disclosures and identify concerns that a neutral expert might not investigate as aggressively.

What if my spouse is hiding assets?

Michigan law requires full financial disclosure during divorce. If you suspect hidden assets, your attorney can use discovery tools including interrogatories, subpoenas for financial records, and depositions. Forensic accountants can analyze lifestyle expenses, trace fund movements, and identify red flags suggesting concealed wealth. Courts take hidden assets seriously and may award additional compensation to the wronged spouse.

Take the Next Step: Protect Your Financial Future

High-asset divorces require careful planning, thorough analysis, and experienced legal guidance. The decisions you make during this process will affect your financial security for years to come—and missteps can be extremely costly.

At Boroja, Bernier & Associates, we help business owners, executives, and professionals throughout Macomb County, Oakland County, Wayne County, and Southeast Michigan protect their assets and achieve fair outcomes in complex divorces. Our attorneys understand the nuances of business valuation, investment division, and strategic negotiation that high-net-worth cases demand.

To schedule a consultation with the Michigan high-asset divorce attorneys at Boroja, Bernier & Associates, call our law offices at (586) 991-7611. With our main office in Shelby Township and satellite offices in Troy, Ann Arbor, and Lansing, we’re here to help you navigate this challenging time and protect what you’ve built.