Nearly half of well-off individuals intend to leave their partners due to relationship breakdowns caused by the COVID-19 pandemic.
250 persons earning over £200k in c-suite-level positions, with a minimum of £2 million capital assets, recently took part in a survey by specialist research agency, Censuswide, with most questions focused on their personal wealth and relationship status.
The survey produced a number of interesting findings. The most significant finding was that 97% of participants admitted to having family problems, 28% with addiction, 28% with coercive control, 27% with no work-life separation.
Many even openly admitted to domestic violence impacting their families at a significant 25%, and 31% including women.
The vast majority, at 72% out of the 250 confirmed that themselves and their partners have protective measures in place in the event of a relationship breakdown, by either a cohabitation agreement or declaration of trust.
The survey was carried out following a recent announcement from Dominic Raab, the Justice Secretary, advising individuals to attempt alternative dispute resolution (ADR), such as mediation prior to applying for court proceedings. 27% of respondents said they are likely to seek mediation, 27% of men expressing they would suggest the option, 6% less than women, as reported via Today’s Family Lawyer.
Here we will discuss the matters involved in a high net worth divorce, including what counts as a high net worth divorce, what each party is entitled to, who will be entitled to any businesses and how a high net worth divorce solicitor can assist.
What is a high net worth divorce?
Where an individual or both parties involved in the marriage has a considerable amount of assets that exceeds the standard living, they will be considered as having a ‘high net worth’. Where there are assets consisting of trusts, multiple properties, personal assets, business assets, on and off shore assets or substantial inherited wealth, those involved will be recognised as having a high net worth divorce.
What are each party entitled to in a high net worth divorce?
It is understandable that when individuals are going through a high net worth divorce that the sharing of assets might be a cause for concern, particularly where a substantial amount of money is involved.
The courts will not determine a high net worth divorce to be any different than a standard divorce so, for this reason, the courts will still take into consideration the same factors that are in Section 25 of the Matrimonial Causes Act 1973, these factors include:
- The current and potential future income, property, and other financial resources each party have
- The current and potential future financial needs, obligations, and responsibilities each party have
- The standard of living enjoyed by the family
- The age of each party
- The mental and physical disabilities each party have
- The past and future contributions each party makes
- The needs of any children, including financial, disabilities, etc.
What Happens to Businesses During a High Net Worth Divorce?
High net worth individuals often own a business or multiple businesses, so where they are experiencing a divorce, their businesses will understandably be a main concern. It’s often believed that businesses owned by you, or your spouse will be split 50/50 in a divorce, but this is highly unlikely.
The value of any businesses will be considered in a financial settlement and what happens to it will be decided by the courts.
How can a solicitor assist with high net worth divorce?
Working with a high net worth divorce solicitor provides you with specialist expertise from someone who has dealt with many cases similar to yours, where an individual wants to protect their assets from their separating partner while dealing with the division of family assets.
High net worth divorce is usually considered more complicated and requires additional support to a standard divorce. For this reason, a higher level of legal expertise will be used in your case.
Many high net worth individuals will have created either a pre-nuptial or post-nuptial agreement setting out what will happen in the event of the marriage breakdown. Where you have an agreement in place, a solicitor will assist with applying this to your divorce where it’s needed.
Speak with our divorce solicitors in Hoddesdon & Broxbourne
For a friendly, informal discussion about how our family lawyers can help you with a high net worth divorce, please get in touch.
- Telephone: 01992 464552
- Email: mail@braddonsnow.co.uk