USA – INDIANA Trends and Developments Contributed by: Andrew Z. Soshnick, Faegre Drinker Biddle & Reath LLP
and undefined. While only a handful of states have adopted statutes regarding post-marital agreements, conflicting case law in Indiana suggests the appropri ‑ ateness of the legislature to consider statutory guid ‑ ance. That effort is unlikely to be made in 2026, but look for it to be raised at some point in the coming years. Also, adoption laws are under scrutiny in this session of the Indiana General Assembly. Bills to reduce the time for a party to withdraw consent to an adoption is almost certain to make it to committee and may advance further. Much litigation has arisen over the years in the context of adoption consents, with some difficult outcomes for children. Legislators appear to have taken note and made this topic one of priority in their agenda. From a socioeconomic and demographic perspective, Indiana is changing. What was once a largely agrarian and manufacturing economy is now rapidly converting to a service economy. Healthcare, life sciences, and information technology has emerged in the Bloom ‑ ington to West Lafayette corridor, including Indian ‑ apolis. Ft. Wayne and Evansville are diversifying their economies. Even northwest Indiana near Chicago, a long-time hub of industrial businesses, is adapting to more service offerings. The result of this conversion is the emergence of new businesses, venture capital, and private equity that drives sophisticated valua ‑ tion issues in divorce cases. Gone are the days of only valuing a farm or tool company. Now, the most complex valuation issues arise with some frequency at divorce. Courts are grappling with new concepts, and experts are learning and developing skills that were once the province of valuation professionals on the US coasts or in more notable emerging markets. The Indiana government solicits these new ventures, and, with a low tax rate and business incentives, is drawing new enterprises to the Midwest. This growing business sector means that complex valuation issues involving venture capital, private equity, an assess ‑ ment of personal goodwill (not a marital asset under Indiana law) and enterprise goodwill (a marital asset under Indiana law), discounts for lack of marketabil ‑ ity, discounts for lack of control, risk assessments, and capitalisation rates, will take on new and greater importance. Accordingly, the opportunities for busi ‑
ness litigation between people, when relationships are ending, has become much more frequent. The need for sophisticated divorce counsel is as never before and will continue to expand as Indiana’s economy continues to embrace the digital age. As with the changes in its economy, Indiana’s pop ‑ ulation is evolving. In particular, more couples are eschewing marriage and cohabiting. Since the late 1970s, Indiana has addressed the property rights of cohabitants through case law. Only joint property is divided between cohabitants and the laws of divorce do not apply. That can lead to vigorous disputes over what to divide and what is the appropriate division of property. This topic has not been top of mind for legislators, but some wonder whether there should be more formal rules for property division when cohab ‑ itants end their relationship – particularly with the dearth and non-application of spousal maintenance laws. This issue is unlikely to arise to the forefront but could become of interest on the basis of supply and demand. Indiana also has enacted some of the strictest laws in the US related to abortion. Those restrictions are solidified by the Dobbs decision from the US Supreme Court but may continue to be challenged by different theories. These laws may attract/deter certain busi ‑ nesses to/from Indiana. At the present time, Indiana’s economy is strong and diversified with low taxes. Indi ‑ ana consistently is ranked as one of the best states for businesses. These competing considerations and the ultimate outcome may impact the quantity of high- net-worth matrimonial actions in Indiana. Finally, while general statistics suggest that Indiana’s population is at the lower end of states, in terms of education, those statistics are deceiving. There is a mountain of family wealth that passes from generation to generation through farms, businesses, and person ‑ al holdings. That wealth is augmented by the conver ‑ sion of Indiana’s economy and attraction of profitable investments. Indiana’s high-net-worth base contin ‑ ues to expand exponentially and, in times of marital distress, provides the most complex and compelling issues for resolution in divorce cases. That trend is likely to continue long into the future.
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