Any divorce involving one or more high net worth individuals can introduce significant extra complexity to the financial settlement, which in turn can create time delays and substantial additional legal costs.
Financial mediation is specifically designed to resolve those complexities and settle any disputes as quickly and as amicably as possible, allowing progress to be made and reducing the need for divorce lawyers to fight each party’s case in court.
This is important in any high net worth divorce, including between two parties of approximately equivalent income or financial standing, but is arguably even more so when one party’s income is significantly higher than the other’s.
The complexity of high net worth divorces does not just stem from the fact that there is more money in the marital account. High net worth individuals also tend to have their finances structured in more complicated ways.
For example, your marital finances may include any (or all) of the following:
It’s important for both parties to understand what they are entitled to – such as a possible claim on your partner’s private pension savings – and what they are not, such as certain assets that were owned fully by one party before the relationship began.
Financial mediation offers an immediate structure to the process of discussing the division of finances and assets in high net worth divorces.
Trained, experienced mediators are adept at providing guidance in a sympathetic but not patronising way, helping to keep emotions under control and to provide clarity in the case of any disputes.
As the name suggests, financial mediation has a specific focus on the marital finances. This focus helps to steer the conversation clear of personal grievances surrounding the end of the relationship and keep the attention firmly on reaching a mutually agreeable financial settlement.
While a court settlement is likely to apportion blame and make a one-sided financial award, mediators are unbiased and objective, so the agreed solutions are more likely to be in the best interests of all affected parties and dependants.
Because every divorce is different, especially in the more complicated case of high net worth divorces, financial mediators work hard to develop a truly bespoke arrangement – there is no single solution to suit all divorces.
You can even bring your IFA (Independent Financial Advisor) or Pensions Advisor to your mediation sessions, to make sure you get the advice you need from all sides.
If you would feel more confident with your divorce lawyer present, we can also offer Hybrid Mediation, which consists of mediation sessions with the divorce solicitor present.
To find out more about financial mediation, or to discuss your circumstances in complete confidence, call Marcia Lister and her expert team on 0161 425 3940 or email [email protected] for a quick and helpful reply.
If you have any questions, call us on 07791 560 161 or fill out this form
