Divorce can involve difficult financial decisions in any circumstances, but where substantial wealth is involved, the issues can become more complex. A high net worth divorce may involve businesses, investment portfolios, trusts, pensions, valuable property and assets held in several countries. There may also be questions about inherited wealth, assets acquired before the marriage, company structures and whether one spouse has a complete picture of the family’s finances.

For international families, there may be an additional issue before financial negotiations begin: which country should deal with the divorce? The answer can have a significant effect on the eventual settlement.

Taking advice from a divorce financial settlement solicitor in London can therefore be important where the marriage, the parties or the assets have an international dimension.

What is a high net worth divorce?

There is no fixed financial threshold that automatically makes a divorce a high net worth case. The term is generally used where the value, nature or structure of the assets means specialist financial and legal analysis is required.

A case may involve the family home, investment property, substantial savings, shareholdings, private companies, complex pensions, trusts, bonuses, deferred remuneration or overseas investments. Often, the difficulty is not simply the amount of wealth involved, but the way that wealth is held.

This is why a complex divorce finances solicitor in London will usually look beyond the headline figures and consider the full structure of the family’s resources before advising on settlement.

How are assets divided in a UK divorce?

One of the most common questions after separation is: am I entitled to half in a divorce?

There is no automatic rule that every asset must be divided equally. The court in England and Wales has a broad discretion when determining financial claims following divorce and will consider the circumstances of the case as a whole.

Factors can include the income, earning capacity, property and other financial resources of each spouse, their financial needs and obligations, the length of the marriage, their ages, the standard of living during the marriage and their contributions to the welfare of the family. The needs of dependent children will also be important.

Questions such as what am I entitled to if I divorce my husband, can I get 50% of the assets in a divorce and what is a fair divorce settlement for a wife cannot therefore be answered by applying a simple percentage.

What happens to a business in a high net worth divorce?

Businesses often create some of the most difficult issues in high-value financial proceedings. A spouse may ask: Can I get half of my husband’s company in a divorce or is my husband’s company included in our divorce?

A business can form part of the financial landscape even if only one spouse founded it, owns the shares or manages the company. However, that does not necessarily mean the company itself will be divided between the parties.

The court may need to understand the value of the business, the income it can realistically generate and the extent to which its value was created during the marriage. In some cases, expert valuation evidence may be required.

Liquidity is also important. A company may be valuable on paper without having sufficient cash to fund a substantial lump sum immediately. A settlement may therefore need to be structured so that one spouse receives fair provision without unnecessarily damaging the business.

Salary alone can also give a misleading picture. A business owner may receive dividends, bonuses or other benefits. Where a husband will not disclose company accounts in divorce, legal advice should be obtained promptly because full and frank financial disclosure is central to the process.

What happens to pensions in a high net worth divorce?

Pensions can be among the most valuable assets in a marriage and should not be overlooked simply because they cannot immediately be converted into cash.

A spouse may ask can I get half of my husband’s pension or how is a pension divided in divorce? Again, there is no automatic entitlement to a particular percentage.

Depending on the circumstances, pension provision may be dealt with through a pension sharing order or considered alongside other assets when structuring the settlement. High net worth cases can involve several pension arrangements, some of which may have benefits that are not reflected properly by the headline transfer value.

Further complications arise where a pension is held abroad. Questions such as can I claim a foreign pension in an English divorce or can an English court divide a German pension require specialist advice because the ability to implement an English order may depend on the scheme and the jurisdiction in which it is based.

Where German and English financial arrangements overlap, advice from a German-speaking divorce lawyer can be particularly valuable.

What if there are assets abroad?

International wealth can make divorce considerably more complicated. A divorce with assets abroad may involve overseas property, foreign bank accounts, investment portfolios, foreign pensions, international trusts or companies incorporated in other jurisdictions.

Full financial disclosure will usually need to address overseas assets as well as those in England and Wales. A foreign assets divorce solicitor may also need to consider valuation, tax and whether an English financial order can be recognised or enforced where the asset is located.

An overseas property in divorce may need to be valued according to local market conditions, while a foreign company may require specialist accounting evidence. Where there are concerns about hidden assets abroad in divorce, a detailed review of company records, bank documentation or trust structures may be necessary.

Which country should I divorce in?

For international families, jurisdiction can be one of the most important issues in the case.

Someone living outside the UK may ask: can I divorce in England if I live abroad, can I divorce in England if my husband lives abroad or can I divorce in England if we married abroad?

Where a couple has connections with more than one country, it may be possible for divorce proceedings to take place in different jurisdictions. The financial consequences can vary because legal systems may take different approaches to property, maintenance, pensions, inherited wealth and business interests.

It is therefore important to obtain advice before proceedings are issued, particularly where the other spouse may also be considering starting a case abroad.

This can become urgent where there are competing divorce proceedings, a forum dispute divorce or a jurisdiction race divorce. An international divorce lawyer in London or cross-border divorce solicitor in London can assess the jurisdictional connections and advise on whether England and Wales is an available and appropriate forum.

For British-German families, advice from a German divorce lawyer in London or German-speaking family lawyer in London can be especially useful where residence, property, pensions or companies are divided between the two countries.

Can I make a financial claim in England after a foreign divorce?

Sometimes a couple has already divorced abroad but the financial provision made there does not adequately deal with assets or needs connected with England and Wales.

In certain circumstances, it may be possible to seek financial relief after a foreign divorce under Part III of the Matrimonial and Family Proceedings Act 1984. These are specialist applications and are not available in every case.

They may be relevant where there has been an inadequate foreign divorce settlement, where significant assets remain in England or where provision needs to be considered in relation to an English pension.

Someone asking can I make financial claims in England after divorcing abroad or can I claim against my ex-husband’s UK pension should obtain specialist advice before assuming that the foreign divorce has brought every potential financial claim to an end.

Can high net worth divorce cases be settled without going to court?

Yes. Substantial or complex finances do not automatically mean that a divorce must result in a contested final hearing.

Many couples resolve financial matters through solicitor negotiations, mediation, private financial dispute resolution hearings or other forms of alternative dispute resolution. Agreement can provide greater control over the timing and structure of the settlement, which may be particularly useful where businesses, investments or international assets are involved.

However, an agreement should normally be converted into an appropriate financial order after divorce. Without a legally binding order, financial claims may remain unresolved even though the parties have reached an informal agreement.

Speak to an international divorce lawyer in London

High net worth divorce requires more than simply adding up the assets and dividing the total. Businesses may need to be valued, pensions may require expert consideration and international assets can raise questions about enforcement, taxation and jurisdiction.

Beyer Family Law advises clients on complex financial settlements following divorce, including cases involving businesses, pensions, substantial property portfolios and international assets.

If you require advice about an international divorce financial settlement, divorce involving foreign companies, English divorce involving German assets or another complex financial matter, obtaining specialist advice at an early stage can help you understand the assets involved, protect your position and identify the most appropriate route towards a fair settlement.

Call Beyer Family Law on +44 (0)20 8616 8560 or email mail@beyerfamilylaw.com for a free initial telephone consultation.