Divorce and Protecting Assets of Innocent Spouse

INTRODUCTION

When most people think about divorce, they imagine custody battles, emotional fallout, or financial struggles. But in some cases—particularly where significant civil liability is looming—divorce can serve as a strategic tool to protect assets. The high-profile case of Derek Chauvin, the former police officer convicted in the death of George Floyd, sparked headlines not only for the crime but also for the timing and nature of his divorce. As lawsuits mounted, Chauvin and his wife filed for divorce in what prosecutors later alleged was an attempt to shield assets. This case sheds light on a controversial but real legal concept: that marital dissolution, when properly and lawfully executed, can serve to separate liabilities—and preserve wealth.

 

REX HEUERMANN AND DEREK CHAUVIN

 

A recent example is rex Heuermann, the accused Gilgo Beach serial killer.  He has been charged with 7 homicides, yet, his spouse, Asa Ellerup,  publicly continues to support him stating she wishes to see the evidence. The serial killer they describe is not the person she knows. despite the public support, she filed for divorce shortly after he was charged presumably to preserve assets. The divorce was granted, but the terms of the divorce are not publicly available. 

 

A more local example is Derek Chauvin.  In July 2020, just weeks after the death of George Floyd sparked national outrage and civil litigation, Derek Chauvin’s wife filed for divorce. At first glance, the timing might have seemed coincidental, but court filings quickly suggested otherwise. Prosecutors accused the couple of attempting to fraudulently transfer assets—including bank accounts, real estate, and retirement funds—out of Chauvin’s name and into his wife’s, ostensibly to shield them from impending civil lawsuits and restitution claims.

 

The couple had proposed a settlement in which nearly all marital assets would go to Kellie Chauvin, raising red flags with the judge. The court ultimately rejected the agreement, citing concerns that the divorce was being used to “defraud creditors” and obstruct justice. While the divorce was eventually finalized, the asset transfers remained under scrutiny.

 

This case illustrates how courts can—and do—look beyond the surface of a divorce filing. While marital separation is a personal decision, when it coincides with major financial or legal exposure, courts may evaluate whether the divorce is being used as a legal smokescreen. Chauvin’s case became a cautionary tale about walking the line between lawful strategy and illegal evasion.

 

Divorce as an Asset Protection Strategy

While the Chauvin case raises red flags about fraudulent intent, it's important to understand that divorce can serve as a legitimate tool for asset protection— if executed lawfully and transparently. In fact, many people facing lawsuits, business risks, or financial uncertainty may consider divorce as part of a broader risk management strategy.

 

One of the core reasons divorce can protect assets is due to the legal separation of financial identities. Once a divorce is finalized and assets are divided, the debts or liabilities of one ex-spouse generally do not affect the other. For individuals in high-risk professions—such as doctors, business owners, or public officials—this separation can be a form of financial insulation for the non-liable spouse.

 

How this plays out depends heavily on state law:

• Equitable Distribution States like Minnesota divide assets based on fairness, not necessarily equality. This allows more flexibility in allocating assets strategically—especially when one spouse faces potential lawsuits or judgments. The key is to define why a particular settlement is equitable. A person who is incarcerated cannot pay child support or provide support to a family that needs it.  That may warrant a more favorable property settlement to the innocent spouse. 

Here are some key red flags that may trigger some additional judicial scrutiny in analyzing settlements:

• Unbalanced asset division: If one spouse receives nearly all valuable assets while the other takes on debt or little of value, courts may view it as an attempt to shield assets unfairly.

• Sudden divorce filings aligned with legal action: A divorce filed just as a lawsuit or criminal investigation is looming may appear suspect—especially if there’s no prior indication of marital discord.

• Concealed transfers or hidden accounts: Failing to disclose accounts or transferring property to third parties before or during divorce can result in the court setting aside agreements.

• Lack of independent legal representation: If both spouses don’t have their own attorneys or if the process seems rushed, courts may question the legitimacy of the intent.

To assist in navigating complex areas of family law and divorce, call Attorney Maury Beaulier (952) 442-7722.