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How HNW clients can face more challenges in divorce

  • Explain the challenges of HNW divorces
  • Identify the issues with cross jurisdictional divorces
  • Explain the reasons for a non-court dispute resolution
CPD
Approx.30min

The main one for many HNW individuals, who are often also high-profile individuals, is that it can be difficult to avoid the media publicity that such cases attract for those who prefer to keep their personal affairs and finances private. 

While the hearings will in most cases take place in private, accredited members of the media can apply to attend most family court hearings (although judges can refuse permission in certain circumstances), making non-court dispute resolution a preferred option where privacy is a priority, as long as both spouses can agree that they want to deal with their divorce in this way.

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Arbitration and privately held financial dispute resolution hearings are the non-court processes, along with lawyer-led negotiations and collaborative meetings, that most HNW couples will prefer to the family court, because of the privacy they afford.

Legal and financial advice

Due to the multitude of assets under consideration in HNW divorces, people and their divorce lawyers will often need to build a team of advisers, such as accountants, surveyors and tax advisers around them to assist with valuing assets and constructing settlements that maximise wealth preservation.

Overseas or dual-qualified lawyers can be necessary to assist with any cross jurisdictional issues. 

Sometimes one spouse will hold all the information about the financial resources and the other will have little to no knowledge of the assets and where they will be held, and so will be reliant on their team of advisers to help them gain a clear understanding of the assets involved and, where there is a choice, which ones it would be best to secure within the settlement.    

In some cases, where one spouse does not even have access to the financial resources to instruct lawyers and other experts, the court process can be used to achieve an equal footing by making orders for interim maintenance until a long-term settlement is reached, as well as orders for payment to cover legal and expert expenses. 

Ultimately, although the divorce process itself is the same regardless of wealth, HNW and celebrity couples will likely face additional issues when it comes to their finances.

Tensions can often run high, and these are usually channelled through the legal system. It remains to be seen how Sam Raimi and Gillian Greene will handle their divorce.

Nicky Hunter is a partner and collaborative lawyer and Hollie Murray is a senior associate at Stowe Family Law

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Non-matrimonial assets in a HNW divorce will likely be retained by the person who brought them to the marriage, true or false?

  2. Which of the following is NOT an issue with assets held overseas?

  3. Charitable foundations always survive intact a divorce of a founding wealthy couple, true or false?

  4. Why is a non-court dispute resolution a preferred option for many high-profile couples?

  5. Why does one party often need a team of advisers to assess assets?

  6. True or false: It is the most acrimonious divorces that end up with either party making a financial remedy application to the family court.

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You should now know…

  • Explain the challenges of HNW divorces
  • Identify the issues with cross jurisdictional divorces
  • Explain the reasons for a non-court dispute resolution

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