A couple who enjoys a life of financial ease may find that their wealth, unfortunately, complicates the process of ending their marriage. Having substantial assets can significantly complicate a divorce.
The lawyers at the Riley Divorce & Family Law Firm could help you navigate the common pitfalls in Ottawa high-net-worth divorces. We have the legal and financial experience to help you meet your high-asset divorce objectives efficiently and as privately as possible.
You will likely find that the slow pace is one of the most frustrating aspects of a high-asset divorce. Most people seeking a divorce hope to conclude the proceedings as quickly as possible. However, this is a common pitfall you should avoid in your Ottawa high-net-worth divorce. When you have substantial assets, patience is essential.
Dividing assets and reaching an agreement on equalization requires a thorough inventory of holdings and a determination of their value. Many third-party professionals may be involved in these processes, and accuracy is essential. Verification and valuation take time.
If you and your spouse have a premarital agreement, you might assume that the property division aspect of your divorce will be finalized quickly. Although premarital agreements undoubtedly ease property division, there still may be delays.
One potential source of conflict is your separation date, which is critical in determining the value of your family property. When you hold significant wealth in equities or foreign currency, and in a volatile real estate market, the separation date can make a significant difference in the equalization figures.
According to Canada’s Divorce Act s.8(3), there are several methods of calculating the separation date. The lawyers at the Riley Divorce & Family Law Firm could review the variables present in your case and select a separation date that best serves your divorce objectives.
Given the significant risks involved, it is no surprise that high-asset divorces often become high-conflict. However, it is best if you avoid this common pitfall and instead work to maintain a civil atmosphere throughout your Ottawa high-net-worth divorce, as this will benefit you, your reputation, and especially your children.
Mediation or collaborative divorce processes are the most efficient ways to resolve disputes in high-net-worth divorces. Both methods require you and your spouse to communicate respectfully and negotiate in good faith.
Taking extreme positions, refusing to compromise, or behaving disrespectfully toward your spouse are ineffective strategies and may drive the divorce toward litigation. Although the lawyers at the Riley Divorce & Family Law Firm have sharp courtroom skills, resolving a high-net-worth divorce out of court is typically the preferred option. Litigated divorces can have a negative impact on children, add considerable cost, heighten the possibility of reputational damage, and carry the risk that a judge will not accept your position.
Many high-net-worth couples are prominent public figures. A litigated divorce can lead to private information becoming public with the potential for personal embarrassment and professional repercussions. Even when the spouses are not well-known, security is always a concern for wealthy people.
Settlements outside of court preserve your privacy. Settlements are not public documents, and mediators and others involved in negotiations are bound by confidentiality obligations. Our lawyers could include non-disclosure and non-disparagement clauses in the divorce settlement to ensure ongoing discretion. If you have any further questions about the common pitfalls in high-income divorces, our Ottawa lawyers are available to answer them.
Divorce is one of the most stressful events you can endure. When significant assets are involved, the process unfortunately becomes more complicated.
The lawyers at Riley Divorce & Family Law Firm dedicate their careers to successfully navigating the common pitfalls in Ottawa high-net-worth divorces. We are always available, so contact us today for guidance and support throughout your divorce.
The Riley Divorce & Family Law Firm
