The increasing trend of “gray divorce,” the dissolution of marriages among couples in their 50s and 60s, presents a distinct set of challenges for family law attorneys. Unlike divorces earlier in life, these cases often involve a lifetime of accumulated wealth, held in complex financial structures that require a specialized skill set to navigate. The division of assets upon a divorce – such as trusts, private investments, and family businesses – can be particularly intricate, creating a need for a partnership with a fiduciary litigation firm that can provide the expertise to unravel these complexities.
The Necessity of Specialized Expertise
“The lawyers that are looking at this are very good at [gathering the relevant financial information for the assets that will be divided upon the dissolution of the marriage.] ” notes Craig Frankel, a founding partner of Gaslowitz Frankel. “They’re very good at getting valuations of businesses. They understand retirement. They understand insurance. They do not always understand trusts. And they don’t often understand the intricacies of a family-owned or small business that may have an operating agreement or other things.” Frankel, a litigator with over three decades of experience in fiduciary and business disputes, highlights the need for family law attorneys to seek support when a case extends beyond their core practice areas into the specialized field of fiduciary law.
Protecting a Lifetime of Assets
For couples in a “gray divorce,” the stakes are often higher, as they are at a point in their lives where they have less time to recover from a financial loss. They have earned or otherwise acquired significant assets and are more established. It is this very accumulation of wealth that often makes the divorce so contentious and complicated, and the family law attorney’s ability to protect their client’s interests hinges on a comprehensive understanding of every asset involved. Fiduciary litigators at Gaslowitz Frankel work with family law counsel to understand complex structures such as trusts and closely held businesses, identify any potential areas of dispute, and develop a legal strategy that accounts for all the intricacies of the financial assets at play.
Strategic Collaboration on Complex Financial Issues
This collaboration is particularly crucial when dealing with trusts. One party may argue that these assets are off-limits, but a fiduciary litigation firm can provide the guidance to determine whether a trust is valid, whether it has been properly funded, and whether there are legal avenues to challenge its inclusion or exclusion from the marital estate. “Most lawyers that choose to go into family law are often very good at figuring out assets because you’ve got to divide up the property,” Craig states, acknowledging their skill, but also pointing out the necessity for specialized knowledge when a trust is involved, because the funding of the trust, the written terms of the trust, and many other factors will be informative of whether trust assets are subject to division upon divorce.
The Power of a Litigation Partner
In collaboration with divorce counsel, fiduciary litigators such as Gaslowitz Frankel will draft the discovery and come up with the legal theories for including or excluding trust assets from the marital assets subject to division upon divorce. The firm will also participate in mediation to assist in advocating the client’s position. If the case proceeds to depositions or trial, the fiduciary litigators will normally join in as co-counsel and try the trust aspects of the case. This partnership ensures that family law counsel can provide robust representation for their client, with the backing of a firm that has a deep understanding of trust law, fiduciary duties, corporate law, and the complex financial instruments that are so common in high-asset “gray divorce” cases.
