de Beer & Associates, P.A.

free initial consultations | email Us

local: (651) 714-2378

Understanding prenups, equitable distribution, and divorce

An impending divorce between oil executive Harold Hamm and his wife Sue Hamm could be the most expensive divorce in American history. Hamm is worth an estimated $11 billion, due largely in part to his 68 percent stake in the oil company Continental Resources. With no prenuptial agreement, Sue Hamm may be entitled to half of Harold's 68 percent stake, leaving the oilman without control of the company and with $5 billion less in the bank.

One of the reasons Sue Hamm may be entitled to such a large stake in the property division between the couple is that Oklahoma, like Minnesota, is an equitable distribution state. In an equitable distribution state, a judge is allowed to divide assets based on what is fair, not necessarily what is equal. In the case of Harold and Sue Hamm, both spouses were heavily involved in the business, making it likely that there will be an equal division of property and assets.

The exact manner in which marital assets are divided during a divorce proceeding can vary dramatically depending on a variety of factors. In some cases, and often the easiest way to deal with property division, is for couples to negotiate the division of the assets with the assistance of an experienced attorney. If couples are unable to come to an agreement, couples are often left to the mercy of the courts. The court will divide marital assets after it has determined what is community property and what is separate property. Community property is anything that has been acquired during the marriage, including business assets.

Marital assets can also get divided during a divorce proceeding based on the terms of the couple's prenuptial agreement. For this to take place, however, the couple must have actually prepared a valid prenuptial agreement. The benefits of prenuptial agreements include clarity and certainty with regards to property division, more control and less court interference and an expedited divorce.

Divorce can be a challenging time for Minnesota residents. If the couple has a significant amount of property and assets, it can be even more stressful. There are legal professionals that can help guide individuals through this difficult time.

Forbes, "Tax Bite On Oil Billionaire Harold Hamm's Record $5B Divorce," Robert W. Wood, March 25, 2013

No Comments

Leave a comment
Comment Information