Divorce is never easy, but if you're a high-net-worth individual and have come to the end of your marriage or civil partnership, you may be feeling uncertain about the prospect of untangling your financial interests and planning for your future.

When it comes to dividing assets where substantial wealth is involved, understandably the process can be more complex.

The financial interests of high-net-worth individuals, such as properties, businesses and trusts, can present several unique challenges when it comes to sharing them in divorce. It’s no surprise that high-net-worth divorce requires specialist legal expertise, meticulous planning and a strategic approach to divide wealth and reach a fair settlement.

In this article, we explore some of the key issues you could face as a high-net-worth individual if your relationship ends, outline the divorce process, and provide expert tips for protecting your finances and your future.

What defines a high-net-worth divorce?

In the UK, there is no strict definition of a high-net-worth divorce. It generally involves the divorce of people whose wealth, when shared between a couple, exceeds what is required to take care of each person’s needs.

Financial interests of high-net-worth people can include:

• Property Wealth – multiple property holdings (land and buildings) in the UK and/or overseas
• Financial Wealth – cash, savings, shares and bonds
• Physical Wealth – art, antiques, jewellery and cars
• Private Pension Wealth – such as large funds and complex income structures

All of these financial interests may be included in an eventual settlement, with an overall valuation that could run into several million pounds.

Key considerations for high-net-worth divorcees

The process for high-net-worth divorce or dissolution is the same as any other type of relationship breakdown but, due to the complex financial interests, additional expertise and planning are needed.

This is because wealth – how it is managed and where it is ‘kept’ – tends to be structured around tax planning and succession, not separation and divorce.

Children

If you have children, your initial focus is likely to be on them, what will be in their best interests, and organising child arrangements, before you consider how to separate your joint wealth.

Given the sums of money involved, child support can become complicated because annual income will exceed the maximum threshold considered by the Child Maintenance Service. It is left up to the couple – or the courts, if an agreement cannot be reached – to decide how child support should be worked out.

If your children are at a private school, a School Fees Order can set out how their school fees (or potentially future university costs) will be met.

Jurisdiction

 It’s fairly common for high-net-worth divorces to have international interests. Divorce laws vary by country and sometimes even within regions of a country. Where you apply can significantly impact financial settlements, spousal maintenance and child arrangements.

In the UK, jurisdiction is typically based on habitual residence or domicile (your permanent legal home). However, high-net-worth individuals with international ties may have options to apply in a more ‘favourable’ jurisdiction.

Choosing your jurisdiction can be strategically beneficial. For example, England and Wales apply the “sharing” principle, often leading to an equal division of wealth, while other locations may prioritise pre-marital assets or limit spousal maintenance.

In cases where different jurisdictions apply, each person will want to file for divorce in the country they believe will be most favourable to their case, so this could lead to a “race to apply”. It’s important to note that the courts may intervene if they believe someone is unfairly manipulating the process.

An early consultation with an expert in international family law is strongly advised.

Business Interests

If you own a business or businesses, determining their value and how they will be treated in your divorce is critical, especially if you have built and developed the business yourself.

Options to divide business assets include:

• splitting ownership, which could lead to conflict if both of you retain shares
• buying the other person out, which may require you to liquidate assets or wind up / sell a business
• taking out business loans or alternative settlements to protect the company

A solicitor may refer you to a forensic accountant to help you accurately assess the value of your business and ensure that you receive a fair financial settlement.

Properties

If you are a high-net-worth individual, it’s unlikely that you’ll be worrying about how to afford a new place to live after your divorce. However, you may jointly own multiple properties and will require an accurate valuation for their potential sale or transfer.

To ensure a fair division, any tax implications of proposed settlements should be fully understood and accounted for before reaching a decision.

Trusts and Investments

Trusts can add complexity to divorce proceedings. To decide if they should be considered, courts will assess whether they:

• were used as a financial resource during the marriage
• were established in relation to the marriage, usually as part of prenuptial or postnuptial agreements
• can be adjusted in favour of the non-beneficiary spouse

Using a specialist high-net-worth solicitor will be essential for planning and understanding how trusts and other investments, such as bonds and shares, should be treated in the context of all the other marital assets.

Offshore trusts are a fairly common way for high-net-worth people to hold wealth and can be more complex to assess due to jurisdictional differences between countries.

Your solicitor must handle these interests carefully, ensuring full disclosure and full consideration of the trust’s role in the marital estate.

Pensions

Pensions are often one of the most valuable marital assets and must not be overlooked in reaching a fair settlement. There are various ways to consider a pension:

Pension sharing – moving a portion from one person’s pension pot to the others
Offsetting – keeping a pension intact by giving a larger share of other marital assets
Attachment orders – redirecting the benefits of a pension when payments are made to the holder of the pension

Tax Implications

Dividing substantial assets may result in significant tax liabilities, such as Capital Gains Tax and Inheritance Tax. Early tax planning is essential to ensure financial stability post-divorce. Your solicitor may refer you to a tax professional to help mitigate any issues.

The high-net-worth divorce process

High-net-worth divorce begins much the same way as any other divorce.

Legal support is not mandatory but, for all the reasons explained above, it is highly advisable. The formal process includes:

1. Application – One or both spouses apply directly or through their solicitor for a divorce (joint or sole application) without needing to assign blame.

2. 20-Week Reflection Period – A mandatory waiting period after the application is filed, allowing time for reconciliation or preparation.

3. Financial Disclosure – Both parties exchange full financial details, including income, assets, investments and debts. This is crucial for negotiating a fair financial settlement.

4. Conditional Order – After the reflection period, applicant(s) confirm they wish to proceed and the court grants a Conditional Order.

5. Negotiating Financial Settlement – Using the disclosed information, both parties work towards a financial agreement, either through negotiation, mediation, or court proceedings if necessary.

6. Financial Consent Order – To formalise the financial settlement and make it legally binding, the Order must be submitted to the court. It’s strongly advised not to apply until matters are settled. Doing so may impact financial claims, particularly regarding pensions and inheritance. The Order separates all your financial responsibilities to one another, except for any ongoing obligations such as spousal or child maintenance. It will also protect each of you if either should try to claim any additional finances or assets in the future.

7. 6-Week Waiting Period – before applying for the Final Order.

8. Final Order – one or both applicants apply for the Final Order, which legally ends the marriage.

Negotiating a fair settlement

Hidden assets

In high-net-worth divorce, ensuring full financial transparency is crucial.

Occasionally spouses may attempt to conceal wealth through hidden investments, offshore accounts or undervalued assets, but asset concealment is unlawful and courts take a very firm stance against it.

With expert legal help (and sometimes the help of a forensic accountant), undisclosed wealth can be identified and properly accounted for in the proceedings.

Matrimonial vs non-matrimonial assets

Not all assets are automatically subject to division in divorce.

Usually courts distinguish between:

• matrimonial assets (acquired during the marriage and typically shared)
• non-matrimonial assets owned before marriage or inherited wealth (typically excluded from the settlement)

In England and Wales, the courts do have discretion about how assets are treated which can sometimes lead to disputes between separating couples. They will consider your financial needs and financial resources when determining the settlement.

You may have already set out how your non-matrimonial assets will be shared in the event of divorce or separation in a pre-nuptial or post-nuptial agreement (made before or after the marriage respectively). Although not legally binding, courts will tend to uphold them provided they were entered into fairly.

Expert tips for high-net-worth divorce

• Gather financial documentation early, preparing records of assets, income, debts and liabilities in advance. This saves time and helps your solicitor to plan strategically and forecast what your financial future may look like.
• Find a specialist high-net-worth solicitor and book an initial consultation to outline your case and find out how they work. Read more about the key questions to ask your solicitor in your first meeting.
• Ask the solicitor about the range of Alternative Dispute Resolution methods they offer, such as Mediation, Collaborative Law or Arbitration. They can help you to negotiate a settlement quickly and efficiently as well as maintain privacy by keeping matters out of court. (If you are a high-profile individual, you may feel concerned by the public interest or media scrutiny that divorce proceedings could bring.)
• Identify your priorities, needs and goals to achieve the best outcome for yourself. Think about what you and your family want at the earliest stage. This ensures that you and your solicitor are always working together towards your goals.

If you have overseas interests:

• Check the solicitor has suitable international family law expertise
• Discuss and identify the most appropriate jurisdiction at the earliest opportunity

Protecting your future

There’s no doubt that high-net-worth divorce can be challenging but, with the right legal support, every issue can be managed and overcome. With good planning, you can safeguard what matters to you and ensure a fair settlement.

At K J Smith Solicitors, we understand both the emotional and financial pressures that come with high-net-worth divorce. Our specialist lawyers take the time to fully understand you and your family circumstances, providing specific legal advice to protect your interests.

Our experts have extensive knowledge to ensure you receive the best representation in all areas. We’ll help you strategically plan for your future so you understand what your financial outcomes could look like. We offer a free 45-minute consultation to discuss your options.

Contact us today to take those all-important first steps towards your future.