When a marriage ends, addressing the financial aspects of a high net worth divorce can feel overwhelming. For couples with significant wealth, these challenges are often even more complex, involving the division of extensive property portfolios, businesses, pensions, and trusts. At FJG, we understand that every divorce is unique, and our experienced Family Team is here to guide you through the process with sensitivity and expertise. Our aim is to help you achieve a financial settlement that meets your needs and safeguards your future.
Key Considerations in High Net Worth Divorce
Property and Real Estate
For many high-net-worth individuals, property forms a substantial part of their wealth. This might include the family home, additional residences, holiday properties, or commercial and rental portfolios. Determining how these assets should be fairly divided can be particularly challenging, especially if one spouse acquired them before the marriage.
At FJG, we take a meticulous approach to evaluating property assets, ensuring that all relevant factors are considered. Our team works collaboratively to protect your interests while striving for a fair and equitable settlement.
Business Assets
Where business ownership is involved, its valuation and division can be among the most intricate aspects of a divorce. Often, one spouse retains the business while the other receives a proportionate share of other assets, such as property or savings, to avoid disrupting operations.
Our team can guide you through the valuation process and explore creative solutions to protect your business while ensuring a fair division of marital assets. Where necessary we can work closely with our corporate commercial department for their expert advice.
Pensions and Retirement Funds
Pensions often represent a significant portion of the assets in high-net-worth divorces, requiring careful planning to divide them effectively. Common approaches include:
- Pension Sharing: Splitting the pension into separate pots for each spouse.
- Pension Offsetting: Leaving the pension intact and offsetting its value with other assets, like property or savings.
- Pension Earmarking: Redirecting pension benefits to a spouse upon retirement, although this is less common as it retains financial ties and may end upon the pension holder’s death.
We offer tailored advice to help you choose the right option based on your circumstances and goals. Our family team all have a detailed understanding of pensions, to include complex public sector pension funds.
Trusts
Trusts present unique challenges in divorces, especially when one spouse is a beneficiary or trustee. Factors such as the terms of the trust, its purpose, and its jurisdiction must all be considered. Our team has the expertise to navigate complex trust arrangements, ensuring that your financial settlement accounts for these assets appropriately.
Tax
Tax is an important consideration in many cases. We cannot advise in relation to this, however we can work closely with our in-house Tax Advisor or an Advisor of your instruction to ensure that all aspects are considered.
Recognising Non-Financial Contributions
Non-financial contributions, such as raising children or managing the household, are also an essential part of asset division. At FJG, we ensure that we work with you, and other experts if required, to ensure these contributions are valued fairly, presenting your case comprehensively to achieve a settlement that reflects the full scope of your contributions.
Protecting Wealth with Prenuptial and Postnuptial Agreements in High Net Worth Divorce
Prenuptial and postnuptial agreements can simplify divorce proceedings, particularly for high-net-worth couples, those considering second marriages, and in many other scenarios. While not automatically binding in England and Wales, the courts often uphold these agreements if they are fair, properly prepared, and created with independent legal advice. Our team can assess the validity of your agreement and its potential impact on your financial settlement; and further work with you to ensure a fair agreement.
Child Maintenance in High Net Worth Divorces
When children are involved, their wellbeing takes priority. Ensuring that financial settlements cover ongoing costs, such as school fees and extracurricular activities, as well as one-off expenses, is essential. Our team is dedicated to helping you secure the financial stability your children need to thrive.
Resolving Disputes and Reaching Fair Settlements
Reaching an equitable settlement often requires a bespoke approach. Many high-net-worth divorces can be resolved through mediation or negotiation, saving time, money, and emotional strain. In cases where collaboration isn’t possible, our experienced team is ready to provide robust representation in court proceedings.
How FJG Can Help
At FJG, we pride ourselves on delivering bespoke legal advice tailored to your unique circumstances. We understand the emotional and financial challenges that come with high net worth divorce and are committed to supporting you every step of the way. Whether it’s navigating complex business valuations, dividing property, or ensuring your children’s future is secure, we are here to help.
Charlotte Knappett is a Partner and Head of our Family team specialising in divorce & separation, private children law and domestic abuse.
If you have any queries on the above subject, please do not hesitate to get in touch with Charlotte on 01206 217588 or complete our online enquiry form.