HNW Divorce

High net worth individuals often come from other countries or live across a number of countries meaning that a divorce might be possible in more than one country. An early consideration is which jurisdiction will be most advantageous for the divorce. England and Wales has been perceived as being a jurisdiction which awards generous financial provision compared to other countries due to the broad discretionary powers available in financial remedy cases on divorce. The rules following Brexit, the UK’s withdrawal from the EU, have changed meaning that early specialist legal advice evaluating the options available is always recommended.

If the financial provision made in another country is insufficient, the Family Court of England and Wales has powers available under Part III of the Matrimonial and Family Proceedings Act 1984 to either obtain or oppose financial provision, often involving high net worth individuals. Our lawyers have the expertise and experience to advise in this situation

In high net worth divorces, it is essential that our lawyers advise you of the options available to enforce English court orders in other countries. These issues can be complex so early evaluation and specialist family law advice is always recommended.

High net worth individuals often keep their interests or assets in trusts, which makes high net worth divorces more complex, Arguments can arise as to whether such trust assets are treated as a matrimonial assets to be taken into account when advising on outcome. Other issues include whether such trusts have a “nuptial element” which can then be varied by a Court. Additionally, issues can arise as to whether a high net worth individual can access or be able to protect such trust assets. Our high net worth divorce lawyers in London can advise you as to outcome and strategy.

High net worth divorces often involve private companies. Shares may need to be valued, and complexity arises if the business is international in nature, or is held in corporate or trust structures. The liquidity of the business is often a key issue, together with the ability of a business owner, often a high net worth individual, to offset a share of the business to the other spouse. Our high net worth divorce lawyers in London have expertise and experience advising in these situations.

In financial remedy cases on divorce, concerns often arise that a spouse or both spouses have failed to make full and financial disclosure of their financial circumstances. Specific applications may need to be made against third parties including for emergency orders and injunctions. Failure to provide full and frank disclosure has led in high net worth cases, to individuals being imprisoned for contempt of court, or that adverse inferences are made. This can resultin the spouse who has been affected by the non-disclosure, obtaining more generous financial provision. Our high net worth lawyers in London are experienced in recognising and advising in these situations.

In high net worth divorces, the tax implications are likely to be relevant when advising on the outcome, and in particular if assets are held in complex corporate or trust structures or offshore. Our high net worth divorce lawyers in London work closely with tax accountants and other professionals who can provide expert advice regarding such tax issues.

In high net worth divorces, needs are often treated as being generously interpreted, and this can apply to cases involving assets up to £10 Million in England and Wales. In addition to advising on needs in this situation, our high net worth divorce lawyers in London also advise on pre-nuptial and post-nuptial agreements. When such agreements are put in place, it is extremely likely that needs will be interpreted less generously meaning that less financial provision may be provided than otherwise if this is what the couple have freely and voluntarily decided.

In high net worth divorces, there is likely to be more focus on whether assets are to be treated as inherited, matrimonial or non-matrimonial in nature as it is more likely that there will be sufficient assets to meet needs. In such cases, arguments can be made about which assets are matrimonial and should be shared, and to what extent inherited or non-matrimonial assets should be used to meet needs. These can be complex issues to advise on, and you are therefore recommended to obtain specialist advice from our high net worth divorce lawyers in London