Facing the end of a relationship is hard and the legal complexities can be daunting. The situation is often even more complex where substantial levels of assets are involved.
At Witan Solicitors, we deal with high-net-worth divorces for clients. We can ensure that your rights and interests are protected and that you have the financial security you need for the future.
The financial aspect of high-net-worth divorce can be complicated. We can provide expert advice and representation regarding the division of assets and related issues such as child maintenance.
What is a High Net Worth Divorce?
High net worth divorce involves substantial assets held by one or both parties in a marriage. The assets exceed the expenses and financial needs of the parties involved. Financial issues need to be dealt with in divorce, otherwise, you could face a claim in the future as divorce alone does not end financial obligations.
How is Wealth Divided Up?
The court will consider a range of factors when dividing assets in a high-net-worth divorce. As well as providing for the needs and future needs of each party, the standard of living during the marriage will be taken into account. The starting point for the courts is a 50:50 division, but where one party is in a financially weaker position, for example, if they have given up their career to raise children, they may receive a larger share of the assets to compensate.
Financial Wealth
Financial wealth can include a wide range of assets such as bank accounts, savings, investments, pensions and shares. Trusts are often an issue in high-net-worth divorces and the court may consider that funds held in trust should be taken into account.
Property
All property owned by the parties will usually be considered to be a matrimonial asset and included in the settlement.
Physical Wealth
Cash and physical items are included when calculating the divorce settlement. This can mean having items such as art, jewellery, cars and antiques valued.
Pensions
Pensions are considered to be marital assets and can be shared during divorce in a number of ways. This includes pension offsetting, where one party keeps their pension and the other party has a higher level of other assets in return, as well as a pension sharing order where part of one party’s pension is reallocated to the other party.
Business Valuations
Businesses and shares in businesses are also included when marital assets are valued. Where the business has been in a family for generations, the court may decide not to share it when making a financial settlement, but usually, the value of a business will form part of the overall valuation. The court will often try to leave a business with one party to avoid complications if both parties have a continuing interest. This will usually mean that the other party is compensated with other assets.
For more information see business assets and divorce.
How to Protect Your Wealth in a Divorce
It is crucial to seek expert legal advice on divorce to ensure that your financial interests are protected. You will need to make financial arrangements at the time that you divorce so that you have a legally binding order in place for the future.
Non-disclosure in High-Net-Worth Divorces
Both parties are required to make full financial disclosure to each other and the court when making financial arrangements for divorce. It is sometimes the case that one party may not disclose their assets. Where necessary, we can ask the court to order disclosure and/or for assets to be frozen to stop the other party from moving them.
Can Court Action Affect Financial Settlements?
It is sometimes possible to settle cases out of court by way of negotiation. Where this is not possible, bringing a court claim can focus minds on trying to find an agreed solution. If one party is being difficult or obstructive, the court can be asked to take action to deal with matters.
Special Considerations
High net worth divorces can have special considerations that make matters more complex to resolve. As well as dealing with issues such as trusts and businesses, there may be other elements making the divorce process harder than normal, including when the parties live or work overseas.
International Complications
Where there is an international element to a divorce, it may be necessary to bring legal action in more than one jurisdiction, for example, to protect overseas assets. It can also be harder to make arrangements for children and agree on where they should live and go to school.
Alternative Dispute Resolution Process
The courts prefer that wherever possible, issues are dealt with by way of agreement between the parties. If a negotiated settlement cannot be reached, we can represent you through alternative dispute resolution such as mediation, collaborative law or arbitration. These are ways of resolving matters without the need for litigation.
Contact our Family Law Solicitors
Our family law team have extensive experience in dealing with high-net-worth divorce, including in complex and challenging cases. To get in touch with our skilled family lawyers, you can reach out to us through various means. You may send us an email at info@witansolicitors.co.uk, or complete our contact form, and we will promptly discuss your circumstances with you and explore how we can provide assistance. We maintain offices in Birmingham, Northampton, and London.
