High-asset divorces have the potential to be more complex than divorces involving fewer resources. Spouses may fight more intensely, leading to more acrimonious divorce. There is also greater potential for financial misconduct and uneven terms that disadvantage one spouse.
People preparing for complex, high-asset divorces often have two options available if they do not already have a marital agreement dictating what happens during the divorce. They can go to mediation together to try to settle their disagreements amicably, or they can litigate by pursuing a contested divorce in family court.
How can people preparing for high-asset divorces decide which option is better?
When is mediation preferable?
There are numerous scenarios where mediation may be the best solution available for addressing the unresolved issues in a high-asset divorce. If either spouse is in a high-profile position within the local community, the privacy of mediation can prove invaluable. They can keep their disagreements and financial records from becoming part of the court record.
Those with children may want to mediate as a way of minimizing the conflict that their children witness and preserving an amicable co-parenting relationship. Spouses may also feel very strongly about securing specific terms for property division. In cases where one spouse needs to retain sole ownership of certain assets, mediating to find workable compromises can be better than the uncertainty of litigation.
When is litigation the better option?
There are many different scenarios in which litigation might be better than mediation. If there has been a history of abuse and manipulation during the marriage, there’s a reason to worry about an unfair mediation outcome.
Similarly, those concerned about the possibility of hidden assets may want to consider litigation instead of mediation. Mediation generally does not require formal discovery and financial disclosures. As such, those who have engaged in the dissipation of marital assets can get away with their misconduct.
People might also hide assets from their spouses, leaving the other spouse with little recourse after the courts approve the final property division settlement. In scenarios where one spouse wants to hold the other accountable for dissipation or hiding property, litigation might be the best option.
Occasionally, custody matters might be the reason why litigation is necessary. One parent might adamantly refuse to compromise regarding the allocation of parental time and other responsibilities. If there is reason to worry that they might neglect or abuse the children due to substance abuse, domestic violence or other verifiable concerns, having a judge intervene might be the only way to effectively protect the children in the family.
Discussing personal priorities and concerns with a skilled legal team when preparing for a high-asset divorce can help spouses determine whether divorce mediation is the right option or litigation is necessary. With the right approach to divorce, people can protect themselves, their finances and their children.