As a medically trained divorce attorney and mediator for over 35 years in NYC, I have worked with many high net worth and celebrity couples.
In my experience as a seasoned and skilled divorce attorney, I can tell you divorce is a challenging process for anyone, but when high-net-worth individuals decide to end their marriage, the stakes are significantly higher. Often involving complex financial assets, luxury properties, businesses, and intricate legal structures, divorce among millionaires can quickly escalate to many hundreds of thousands in legal costs, and complications.
Mediation, however, offers a path that is not only less costly but also less confrontational and more private, and puts a millionaire in the driver’s seat, not the Judges. My unique mediation process has proven to be an ideal choice for those with substantial wealth.
So here’s my thoughts on why millionaires should seriously consider mediation when divorcing.
1. Preservation of Privacy
For high-net-worth individuals, privacy is paramount. Traditional divorce proceedings, which take place in court, can easily become public record. This means that sensitive financial details and personal matters could become accessible to the public. Mediation, on the other hand, is a confidential process. Everything discussed and resolved within mediation remains private, sparing the couple from unwanted media attention and protecting their reputations. This confidentiality makes mediation especially appealing to public figures or those with prominent business positions.
2. Control Over the Outcome
In court proceedings, a judge makes the final decisions on asset division, custody arrangements, and other matters. This can lead to outcomes neither party is fully satisfied with. Mediation, by contrast, allows both parties to have direct input into the agreement, giving them more control over the outcome. For millionaires, this means they can negotiate terms that are mutually beneficial and aligned with their financial goals, business interests, and future plans, avoiding a cookie-cutter approach that might not fit their unique situation.
3. Protection of Business Interests
Many wealthy individuals are business owners or have investments that depend on stable partnerships. In traditional divorces, businesses can become vulnerable to division or liquidation, which can harm the value and operation of the business. Mediation allows divorcing couples to reach a mutually agreeable solution that protects these assets. For instance, they might agree on one spouse keeping the business while the other receives assets of equal value, preserving the integrity of the company and preventing it from getting entangled in a prolonged legal battle.
4. Significant Cost Savings
Divorce litigation is notoriously expensive, particularly when high-value assets are involved. Legal fees, expert witnesses, forensic accountants, and the time required for extensive discovery processes can easily lead to astronomical expenses. Mediation is a more cost-effective solution. By reducing the need for a prolonged court battle, mediation can save millionaires significant amounts of money that would otherwise go to legal fees, preserving more of their wealth for both parties.
5. Faster Resolution
Court schedules and complex asset evaluations can lead to divorce cases dragging on for years. Mediation, however, can be scheduled at the convenience of both parties and often reaches a resolution in a fraction of the time. This speed allows both parties to move on with their lives and focus on their careers, businesses, and personal goals, which can be especially important for high-net-worth individuals with complex responsibilities and obligations.
6. Reduction of Emotional Toll
Divorce can be emotionally taxing, even more so when wealth and high stakes are involved. Traditional divorce often pits spouses against each other, intensifying feelings of resentment and stress. Mediation promotes a collaborative environment where both parties work together to reach a solution. This approach helps reduce the emotional toll, particularly if children are involved. For millionaires who are also public figures, the emotional impact of a publicized, contentious divorce can affect their reputation and mental health, making mediation a more favorable choice.
7. Customization of Asset Division
High-net-worth individuals often have complex financial portfolios that include properties, stock options, retirement accounts, and unique assets like art collections and intellectual property. In a court divorce, a judge may not fully understand or appreciate the value and complexity of these assets, resulting in a generic or inappropriate division. Mediation, however, allows the parties to work with financial advisors and mediators to create a tailored agreement that takes into account their specific needs, ensuring a fair and customized division of assets.
8. Future Relationships and Co-Parenting
For couples with children, divorce doesn’t end the relationship; it merely changes it. When millionaires go through a public, bitter divorce, it can strain their future ability to co-parent effectively. Mediation focuses on fostering respectful communication, making it easier for both parties to maintain a civil relationship post-divorce. This amicable approach is particularly beneficial for millionaires who often have overlapping business interests or social circles, helping them avoid burning bridges.
Mediation is an ideal solution for millionaires seeking a balanced, private, and cost-effective way to dissolve their marriage. By keeping the process confidential, fostering a cooperative environment, and allowing the couple to retain control over the outcome, mediation provides a powerful alternative to the drawn-out and often adversarial nature of traditional divorce.
For those of you with substantial wealth, mediation can protect your family, financial interests, reputation, and emotional well-being, making it an option worth serious consideration.
As a divorce attorney for over 35 years, I have guided many high net worth clients using my powerful and highly successful mediation process.
I can help you too! Call me now to schedule your free consultation. I will answer all your questions and we can discuss all the details. Call 212.734.1551.
I look forward to speaking with you!
Best,
Lois