Steve and Kirk are married and living in Riverside, Nebraska. Both men are horsemen and have successful businesses engaged in the training and sale of championquarter horses. They own the businesses together in partnership and their home is also owned jointly (tenancy in common) and currently valued at $550,000. Total value of their joint assets, including the businesses, is $2.75 million. Steve is approaching 60 years old and Kirk is 42. Steve has just learned that he has developed prostate cancer and, while treatable, his life expectancy is shortened considerably. Both men come to you because they have heard that there might be a financial benefit to their estate planning if they were to divorce and vest ownership of all of the assets in Kirk before Steve passes away.

For this written assignment, consider that question as you begin to develop a thoughtful estate plan for this couple and detail for them the financial consequences of a decision to divorce.