In a high-net-worth divorce, even the smallest mistakes can have a large impact on the client’s future.
The asset protection strategies commonly employed by high-net-worth individuals add a number of complications to divorce cases. They make it challenging to identify assets, determine ownership, and establish value. In addition, strategies often bind assets in complex ownership structures that can only be unraveled with expert legal and financial analysis.
Consequently, attorneys engaged by high-net-worth individuals for divorce proceedings must leverage case strategies that acknowledge and address the potential for hidden assets and hidden risks. They must also be prepared for the reality that higher assets can fuel conflict that is more fierce than that experienced in average divorce proceedings.
The following are some valuable tactics attorneys should consider incorporating as they engage in high-net-worth divorce cases.
Approach the case with empathy
A divorce is one of life’s most complicated experiences, triggering a wide range of emotions and demanding focused attention on a wide range of concerns. The amplified stress that exists in a high-net-worth divorce can exact an even higher emotional toll. When attorneys extend empathy to their clients, they create an environment in which information sharing, decision-making, and other key processes are easier to engage in.
Empathy starts with listening. Rather than diving into the details involved in standard divorce proceedings, lawyers should begin by listening to their clients to understand who they are, what they need, and what help they are looking for. Failure to invest time in building a healthy attorney-client relationship up front can lead to problems and frustrations down the line.
Capture as much property as possible
It is critical that efforts made to capture assets in high-net-worth divorces are extensive and comprehensive. During a divorce, lawyers should seek to capture as much property and income as possible for their clients, given the facts and the law. No stone should be left unturned.
Today’s financial landscape provides a host of havens where high-net-worth clients can hide assets. Discovery demands should address all types of assets, including cryptocurrencies and other alternative methods of holding value, in every possible location.
Reviewing each and every credit card and bank statement is also important, as it can reveal the paths by which funds were dissipated and the locations in which they were stashed. Scouring the parties’ financials is a central part of finding each asset and determining its value.
Determine if a trial is the best course forward
A trial is not a given in a divorce case. A large number of divorces are settled before trial, with the parties reaching an agreement on all significant issues. In such cases, attorneys can play a key role in facilitating discussions and drafting agreements that meet both parties’ needs.
But the need for a trial can arise in some cases. If there are significant disagreements, such as disputes over high-value assets, a trial can be the best way to ensure a client’s interests are best served.
As attorneys navigate this issue, they need to be able to assess and articulate what they can achieve in court versus what is being offered out of court. In some cases, for example, using a judge rather than a mediator or counsel to negotiate the matter can provide extra leverage. In others, you might determine based on a mediator’s track record that they are a good target audience for the facts of the case.
Provide the client with an outcome that looks beyond the resolution of the case
An effective case strategy will not only address the current situation but also provide the client with a solid plan for the future. Once an equitable outcome is secured, attorneys should take steps to leave their client in a position that will allow them to live and thrive going forward. In many cases, those steps involve establishing or updating an asset protection plan for the client.
In a high-net-worth divorce, even the smallest mistakes can have a large impact on the client’s future. By approaching the case with empathy, ensuring all relevant assets are captured, and carefully considering the best path to an agreement, attorneys can ensure the client’s interests are well-represented and the best possible results are achieved.
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