Everything You Need to Know About High Net Worth Divorces
In this blog, we will outline what you can expect from a high net worth divorce.
All divorces are emotionally taxing events. Not only are you separating from a partner you have committed to emotionally, but you also need to unwind all of the financial arrangements which were intertwined by the process of marriage or civil partnership. Naturally, the more money and assets involved, the more complicated things become.
There is no replacement for tailored advice – so give us a call on 0141 478 9090 to discuss your case with one of our experienced solicitors.
What is a High Net Worth Divorce?
A high net worth divorce occurs when the assets of one or both parties to a relationship have assets that are more than what they require financially in their day-to-day life, including potential childcare.
Financial wealth in the context of a divorce can take into account a wide variety of assets. These include, but are not limited to, properties, personal and business assets, pensions, trusts, and anything received by inheritance.
High Net Worth Divorce and Childcare
If a divorce dispute reaches Court, the welfare of any children involved will always be the Court's priority. The expense of child maintenance will be considered, and any settlement will guarantee that money is made available for continued education, holidays and trips abroad, as well as any hobbies regardless of how residency rights are distributed.
In almost every case, ensuring that disruption to their children's lives is kept to a minimum is the priority for all separating couples. As such, this will often be the first element of a high net worth divorce that we will address, assuming there are children involved.
Multiple Properties in High Net Worth Divorces
How the marital home is dealt with is a common point of contention in divorces. Generally, rights to the property will be transferred to one party. In return, the party losing rights to the marital home will receive a lump sum or an equivalent agreement.
What differentiates high net worth divorces is that there are often multiple properties involved, including holiday homes and other properties abroad. There are numerous ways to deal with a property portfolio, and our experienced team will outline your various options to ensure the best possible outcome for your situation.
Personal and Business Assets
Personal assets can include a wide range of things from vehicles to jewellery, hobby equipment, and collections of enthusiast items, including art. The value of business assets will either be calculated using the balance sheets or, when required, a more holistic overview of a company's actual value.
Our team will work with you to establish precisely what assets are held by you and your partner. Once we have a general overview of the assets involved and their value, we will advise on how you can best safeguard your assets as well as how some may be leveraged to strengthen your position.
Pensions and Trust Funds
Pensions and trust funds may be partially or fully included in assets to be distributed in a divorce. Therefore, it will be vital to determine how much of the trust and/or pension was acquired during the marriage or civil partnership to calculate their value in relation to the divorce.
To learn more about what effects divorce can have on your pension click here.
What if I Have a Pre-Nuptial Agreement?
A pre-nuptial agreement will already have been arranged in many marriages and civil partnerships where there is a financial disparity between each partner entering the relationship. This outlines how financial assets should be distributed following the breakdown of the relationship.
If you are entering divorce proceedings with a pre-nuptial agreement, make sure to get in touch with our solicitors. Whether you want to check how much is enforceable or how much you can challenge, we will examine the specifics of your case and agreement before providing reliable and actionable advice.
Get in Touch
Divorce proceedings become exponentially complicated as the assets involved increase. If you are separating from a high net worth couple, you must protect yourself with reliable legal advice from solicitors experienced in divorces involving numerous high-value assets.
There is no one approach as to how you should approach a divorce. When it comes to distributing assets, it is often possible and advantageous to come to an agreement without Court involvement. However, sometimes it is necessary and prudent to raise a court action.
At Kee Solicitors, our team will ensure that you receive advice tailored for you according to your instructions, ensuring you protect your financial position and come out of your divorce having secured the best possible outcome.