Financial settlements divorce UK

High Net Worth (HNW) divorce process in UK can be complex because of the substantial financial assets involved. It’s fair to say that navigating a HNW divorce is a very different journey compared to the typical divorce process. That’s why hiring a family law firm with experience of the High Net Worth divorce process will be your greatest ally.

The Facts

Analysing data from the Office of National Statistics (ONS) Wealth and Assets Survey, Succession Wealth found that 550 couples, with a net financial wealth of £1 million or more, will get divorced in England and Wales every year.

Succession Wealth estimates that collectively these individuals have a net worth of approximately £1.91bn. This works out to around £3.48 million per couple, on average.

If you’re facing a HNW divorce, there’s a lot at stake for you when looking to reach a settlement. One look at the legalities of a HNW divorce will tell you that your best chance of getting a settlement that’s fair, is the support of a family lawyer that’s very familiar with the High Net Worth divorce process.

That’s where Holland Family Law (HFL) comes in. We’re an independent family law firm with experience of navigating such cases. HFL Director, Jennifer McNeil, is particularly skilled at securing favourable outcomes in HNW divorce financial agreements.

Why are High Net Worth divorces complicated?

A High Net Worth couple disembarking a private plane.

If you’re facing a high value divorce, your assets distribution divorce England will likely be held in complex structures that present unique challenges. These assets can include:

  • Financial wealth (meaning any kind of cash, bank account or equity fund)
  • Property division (meaning wealth that’s tied up in property or land)
  • Physical wealth (which includes ‘smaller’ assets like accessories, cars, clothing and jewellery)
  • Private pensions
  • A business
  • Spousal maintenance UK

The question is, what’s considered during the High Net Worth divorce process?

It tends to start with your personal assets, including:

  • Savings and investments
  • Family homes and other property
  • Trust interests
  • Pensions UK

If there’s a business to consider, here are some key questions that will be asked:

  • What are the parties’ interests in the business?
  • What is the nature of the business?
  • Do you require a business valuation and on what basis?
  • Is there liquidity in the business? What remuneration could a Director take from the business?

Trusts tend to be the most complex

A significant amount of your wealth can be tied up in trusts. This means that how the trusts are treated will have the biggest impact on the outcome of your case. Tackling onshore and offshore trusts makes the process tricky and requires expert advice.

Businesses can be a bone of contention in financial settlements divorce UK

While the Courts can be flexible when dividing business interests, it’s worth knowing that they prefer to give one party a larger share of other assets, or a larger maintenance sum, while giving the other more of the business.

This prevents one party from forcing the other to sell off their share, plus it’s an alternative to dividing the ownership equally between two parties if one has a more active role in the business than the other.

A privately-owned business is often the most significant asset in a HNW divorce, but valuing it can be challenging. It’s even more complicated if the business is still active and has assets around the world, which are all held in interrelated onshore and offshore corporate and trust structures.

That’s why businesses can be difficult to divide in a divorce. Even selling the shares can be impractical or impossible, especially if:

  • The shares can’t be converted to cash;
  • One party wants to retain their shares as they rely upon the income.

It is important to have a team of advisors working in unison.  Consideration may need to be given to the option of spousal maintenance UK as an alternative to one party retaining their share in the business.

Matrimonial and non-matrimonial property

A stunning mansion property with a swimming pool that's being contested over as part of the High Newt Worth divorce process.

In our experience HNW divorces place higher stakes on finances and assets, often leading to a more bitter battle than your typical divorce. In this scenario, whether an asset is considered matrimonial or non-matrimonial has a huge sway on how assets are divided.

Non-matrimonial assets can take many forms, usually property that was acquired before marriage. Equally, it could be an asset purchased  after a couple separates.

The Courts may rule that spouses have no rights to non-matrimonial assets. However, an exception to this rule is when one party’s needs cannot be met from the matrimonial property alone.

High Net Worth Pensions UK

HNW divorce pensions can be considered more straightforward to divide compared to other assets. Why? Because there are multiple ways they can be divided, including:

  • Offsetting pensions against other assets

This means that the party with the pension gets to keep it, while the other party receives  compensation in the form of a greater share of other assets.

  • Pension sharing UK

Pension sharing means one party transferring a lump sum of their pension to a pension in the other party’s name.

  • Pension Attachment orders UK

A pension attachment order redirects all or part of one party’s pension to the other party’s pension when it is paid out.

Special contribution in divorce

Another legal avenue that presents a challenge, especially during the High Net Worth divorce process, is when one party claims to have contributed more to a marriage than the other party.

However, this is a changing area of law that’s extremely complex. Mainly because it’s difficult to prove that one party has contributed more than the other to a marriage.

Nevertheless, while it’s rare that a Court will grant a special contribution, the party considered not to have contributed as much should have a defence against the other party’s pursuit of a special contribution.

In a High Net Worth divorce, millions can be gained or lost if one party claims to have made more of a contribution to a marriage than the other party.

Navigating the High Net Worth divorce process needs a family lawyer

These are some of the more challenging aspects of a High Net Worth divorce, but there is more to navigating the process. Untangling assets that have become intertwined and interconnected throughout your marriage can be a financially and emotionally costly journey.

That’s why you need the support of a family lawyer that’s experienced with high net-worth financial settlements in UK divorce cases.

Holland Family Law gives you the support and hands on experience you need. We’re honest about what you can expect from the process, and we’re strategic, considered, and professional in our approach. Plus, we offer a personalised service that means you deal directly with one lawyer throughout your case, giving you one point of contact.

You’re treated with dignity and respect from start to finish, and we’re here to help and advise on:

  • Significant Cash
  • Multiple Properties
  • Business Assets
  • Hidden Wealth
  • Pensions
  • Spousal Maintenance UK
  • International Divorce process
  • International Property and Assets
  • Inherited Wealth
  • Cars
  • High-Value Collections, Antiques & Artworks
  • Investments & Cryptocurrency

How do I Instruct Holland Family Law?

Instructing Holland Family Law increases your chances of a more favourable outcome for your HNW divorce.

In most cases, we offer a 30-minute free advice appointment. Plus, we are a Resolution accredited law firm, serving to resolve cases amicably. To speak with a specialist family lawyer call 0116 436 2170, email: claire@hollandfamilylaw.co.uk or complete our online contact form.