What is a high net worth divorce?

The timescale for reaching a financial settlement in a high net worth divorce can vary significantly, but these cases often take longer than more straightforward divorces because of the complexity, value and structure of the assets involved.

High-net-worth divorce settlements typically involve sophisticated asset structures. For example, shareholdings in large corporations, beneficial interest in trusts (including offshore trusts) and property portfolios spanning the globe. High net worth cases often feature substantial family wealth which may be made up of pre-marital wealth and/or inheritance.

In addition to complex asset structures, high net worth cases can also involve sophisticated legal arguments that may affect both strategy and timescales. These can include allegations of non-disclosure, disputes about whether assets have become matrimonialised during the relationship, and arguments about conduct where one party seeks to rely on behaviour, they say should be considered when determining the financial outcome.

What is the process for reaching a high net worth divorce settlement?

In all cases parties must undergo a full and frank financial disclosure exercise sharing details of their assets and liabilities. This is usually followed by negotiations for settlement. Negotiations cannot be productive until the full financial picture is known.

Due to the nature of assets in high-net-worth cases the disclosure stage is often more complex as asset structures may require investigation and it is almost inevitable that experts will need to be appointed to value assets. For example, an interest in a complex business structure can be valued by a forensic accountant.

If the parties disagree about the valuation ascribed to the various assets this can extend the timeline for expert evidence. Third parties may also need to be involved in the disclosure exercise. For example, parties may be beneficiaries in trusts and the cooperation of the trustees will be required to obtain the necessary information. If this information is not forthcoming this creates complications and adds to the duration of a case.

Once disclosure is complete and parties turn to the negotiations those who work collaboratively are more likely to swiftly resolve their case than those locked in high-conflict disputes.

How long does a high net worth divorce settlement take?

If matters can be dealt with on a voluntary basis i.e. without the need for Court involvement, high net worth divorce cases usually take between 9 to 12 months from initial instruction to obtaining a financial remedy order. Should court proceedings be required cases typically then take between 12 to 18 months, potentially longer in more complex cases.

Open communication between your divorce solicitor, accountant, family office and financial advisers can be crucial in reducing the time it takes to reach a high net worth divorce settlement. If you are considering or facing a high net worth divorce, contact JMW’s specialist family law team at the earliest opportunity to protect your position, understand your options and move the process forward with confidence.