Navigating the Two Biggest Challenges in High-Net-Worth Divorce
Valuation and Lifestyle Analysis: Keys to Resolving Complex Divorce Cases
High-net-worth divorces bring unique complexities that require precision, strategy, and experience to resolve fairly. According to family law attorney Anne Hamer, two challenges stand out above the rest: valuing assets and determining true lifestyle needs.
The first hurdle—asset valuation—often involves intricate financial structures. Many high-net-worth clients hold interests in closely held businesses, family enterprises, or companies started during the marriage that have grown significantly over time. These businesses, along with trusts and other investments, must be accurately valued by professionals, such as forensic accountants, to ensure an equitable division without dismantling income-producing entities.
The second challenge lies in identifying the actual living expenses of the lower-earning spouse. In marriages where one spouse earns significantly more, the other may be accustomed to a lifestyle without fully knowing its costs. Multiple homes, private travel, and other luxury expenditures can make it difficult to pinpoint what is truly needed to maintain a reasonable post-divorce standard of living. In these cases, having a business manager involved can be invaluable, as they often have detailed records of monthly and annual expenses.
Addressing both valuation and lifestyle analysis is essential in protecting financial stability and achieving fair settlements in high-net-worth divorces. With the right legal and financial team, even the most complex cases can be navigated with clarity and confidence.
