Why You Need a High Net Worth Divorce Lawyer
The potential risks and challenges of high net worth divorce proceedings can impact on your financial stability in the long term. Working with a specialist divorce lawyer with experience of high net worth divorce is a necessity.
Divorce negotiations become more complex with the scale and diversity of assets involved. We are adept at navigating these negotiations, armed with strategies tailored to secure your assets and meet your specific needs. Our wealth of experience enables us to anticipate potential challenges and effectively counteract claims from the other side.
We also work with accountants, business valuation specialists, wealth managers and financial advisors to ensure a comprehensive approach to your case to achieve a settlement that preserves your financial interests.
Tailored Divorce Advice and Personalised Service
We will provide a personalised service, tailored to fit your specific circumstances and goals. Whether it’s securing your financial future, co-parenting arrangements, or the immediate management of separation, we will handle each aspect with the attention and expertise it requires.
We are also aware that the end of divorce proceedings will not necessarily mean the end of all legal concerns. Post-divorce, you can reply on our support with issues such as estate planning, trusts, or ongoing financial arrangements.
High Net Worth Divorce FAQs
There is no precise definition of a high net worth individual (HNWI). According to the UK’s Financial Conduct Authority (FCA), a high net worth mortgage customer is someone who either earns more than £300,000 per annum or has net assets of more than £3million.
Often for the purposes of specialist family law solicitors, it will be regarded as a high net worth divorce when the family’s net assets exceed £1million or the combined income of the separating parties is more than £150,000. However, there is no singular definition of a high net worth divorce and in many cases the complexity of the asset structures involved are more of a guide than any pure monetary value.
Those disputes before the courts involving total assets exceeding £15 million or having a party with income exceeding £1 million will be considered for automatic transfer to the High Court.
High net worth divorces often involve a variety of complex issues, which can include the valuation of diverse assets such as international property portfolios, private businesses, investments, trusts, and pensions or other financial products. There may also be consideration given to differing jurisdictional approaches to matrimonial assets, tax regimes and legislation surrounding divorce to consider. This is especially true if assets are held overseas, or if one party resides abroad. The intricacies of such cases require, not just a thorough understanding of family law, but also a command of financial regulations, tax implications and international legal regimes.
The applicable statute (Matrimonial Causes Act 1973) applies to those cases of high value and more modest asset cases alike. The parties still need to go through the disclosure and computation phase, in addition to the distribution phase for settlement.
Those cases of particularly high value of complexity will likely encounter greater consideration of one or more of the s.25 criteria such as standard of living through the marriage, contributions etc or provision of sharing of surplus assets, whereas it is more common to consider issues of financial need in modest asset cases.
Additionally, it is more likely that higher value and complex cases will involve the requirement of specialist expert evidence to help the parties to consider settlement. This evidence may include business valuations, tax advice or advice from lawyers in other jurisdictions in support of lawyers here in the UK.
Privacy is often a significant concern and as specialist lawyers, we understand the value of discretion, have measures in place to protect your privacy, and can implement strategies such as confidential negotiations and private settlements to help minimise public exposure.
The court has the ability to make orders relating to the payment of school fees and maintenance, including “top up” maintenance for those individuals whose annual income exceeds £156,000 p/a, where these matters are in dispute. For high net worth cases, the cost of these expenses are often comfortably incurred as part of the parties’ settlement considerations.
Issues relating to contact and living arrangements for high net worth individuals can offer their own challenges. Contact arrangements for children in boarding school and arrangements for parents that live in separate jurisdictions all offer their own challenges. All court-based decisions are ultimately made with due consideration being given to the criteria set out in the “welfare checklist”, with the court basing any decision on the children’s best interests.
Matrimonial assets are typically subject to division, as they are deemed as jointly accrued through the marital partnership. Non-matrimonial assets may not be divided if one party can demonstrate that these assets were acquired independently and not intermingled with matrimonial finances.
Irrespective of the level of wealth involved in a case, one of the best ways to protect pre-marital wealth in the event of divorce is by way of a nuptial agreement. These agreements can be complex and it is imperative that they are crafted carefully, again with the additional benefit of other specialists to ensure that wealth is protected to the greatest extent possible by the law.
Why Hawkins Family Law?
We offer a level of expertise, strategic acumen, and personalised service that will be crucial in managing the complexities of your high net worth divorce. We are here to help ensure your divorce settlement supports your long-term financial and personal well-being. At Hawkins Family Law, you can be assured of our consistently high levels of support and guidance.