Guide to High Net Worth Divorce

Some of the most difficult and challenging of all divorces are high net worth divorces. In such cases, the stakes are high and the scale of the sums and assets involved intensifies the level of legal complexity.

With such high values for the division of wealth, there is often the risk of potentially lengthy proceedings and negotiations to achieve a fair settlement between the claiming spouse and the protecting spouse. We’ve created the following guide to high net worth divorce, but if you wish to get more advice from our specialist solicitors, please get in touch.

What is a high net worth divorce?

While there is no set definition of a high net worth divorce, the term is generally given to cases that involve sums over at least £1 million. The term ultra high net worth divorce may be used for divorces involving sums and assets in excess of £25-30 million.

This high net worth is not necessarily about the worth of the individual, but more about the value of the assets involved between the separating parties.

The difference between high net worth divorce and normal divorce

The difference between a high net worth divorce and normal divorce is that there are many more assets and finances to be considered in high net worth cases, which makes it more complex. These legal matters require a detailed knowledge of divorce law to ensure any potential problems are dealt with in advance.

Both types of divorces are guided in court by S25 of the Matrimonial Causes Act 1973, regardless of the financial assets involved.

Assets included in a high net worth divorce

A high net worth divorce will cover the accurate valuation and division of a variety of assets between two parties, including the following:

• Personal assets
• Business assets
• Properties
• Savings
• Trusts
• Pensions
• Inherited wealth
• Off-shore assets

Some of the work required as part of this is to establish whether assets are considered to be matrimonial, and therefore should be factored into the divorce, or whether they are assets owned before the marriage. This can also be impacted by any prenuptial or postnuptial agreement that has defined how certain assets will be divided.

Who will be involved in your high net worth divorce case?

In the case of a high net worth divorce, there will be involvement from a number of parties, including, but not limited to:

• Specialist divorce solicitors – such as our team here at Goodwins Family Law Solicitors.
• Forensic accountants – we work with specialists who can provide full asset disclosure.
• Dispute resolution experts – where mediation is required.
• Tax advisors – for specific advice around tax implications.

High net worth divorce: The process

Any divorce can be a stressful time for all parties involved, so it helps to understand the process of divorcing in England and Wales. For a high net worth divorce, there are usually more steps to consider. Here is an overview of the process which you can expect to follow:

1. Initial advice and consultation – You’ll meet with specialist high net worth divorce solicitors to discuss your personal circumstances and assess your best course of action. Our key focus will be on establishing the potential outcomes and identifying any complex financial issues that may arise.
2. Pre-divorce planning – Thorough preparation is required to make the process as streamlined as possible. This includes gathering financial documents, identifying assets – engaging with a forensic accountant if required – and developing a strategy to protect or claim assets and ensure fair proceedings. Arrangements for children will also be a key consideration at this stage.
3. Filing for divorce – Formal divorce proceedings then begin, with an application aligned with the right financial and jurisdictional strategy being taken.
4. Financial disclosure – The financial information of the spouses are exchanged at this stage. Full and transparent disclosure is required, inclusive of high-value assets, businesses and property portfolios. The discovery of hidden or complex assets may also be necessary.
5. Settlements and mediation – Settling on mutually agreeable financial arrangements can be made at this point. This may require mediation or arbitration to help find common ground and reach binding decisions on terms, helping to avoid court proceedings.
6. Court proceedings – If required because disputes cannot be resolved amicably, the courts may need to settle a divorce with a financial remedy between parties. This may require you to attend a series of hearings before a judge reaches a decision on settlements.
7. Finalise the divorce – The process for a high net worth divorce ends, as all divorces do, with a final order (formally known as a Decree Nisi or Decree Absolute). A financial consent order will need to be approved by the court to make the settlement legally binding.

What are the challenges of a high net worth divorce?

There are always a range of challenges to high net worth divorces, including:

• Business valuations – Establishing the value of a business and its assets requires scrutiny, especially for large businesses with overseas operations.
• Property and real estate portfolio – Dividing property is another area where careful valuation is needed, along with negotiations over selling or transferring properties.
• International complications – In many high net worth divorces, there can be assets overseas that are subject to laws different to our own. This means that a full understanding of international divorce law is required to help find the best country in which to file for divorce, helping to avoid huge financial loss.
• Pensions and investments – Where a sizable pension or investment portfolio has built up over a lifetime for one spouse, there must be a proper valuation and division, sometimes requiring pension sharing orders.
• Privacy – Where there is public interest in high net worth divorces between two people, your privacy and confidentiality are at risk. This requires careful handling and solicitors with experience dealing with such high-profile divorce cases.
• Tax liabilities – Due to the large sums of money from high net worth cases, taxes may apply. Expert knowledge of various reliefs, exemptions and the best financial route to navigate will help you understand the financial liabilities you can expect.

Goodwins: Your high net worth divorce specialists

At Goodwins Family Law Solicitors, we’re experienced in handling high net worth divorces. Our specialist team can guide you through the process, with the aim of resolving your case in the least protracted fashion possible. We work with forensic accountants who can help to establish all assets in a high net worth divorce, so you can secure the most favourable outcome for your case.

Contact our specialist team to discuss high net worth divorce today. We can offer a discreet video call service to provide legal advice from anywhere in the world.