• calendar18th Feb 24 11:01 pm
  • userJamie

Mediation And Complex Divorces: Handling High Asset Divorce Cases

Divorce is rarely easy or inexpensive. Of all the matters that must be worked through, the most difficult are often those that involve children and finances. When divorcing, assets and wealth must be divided between the soon-to-be-former spouses. In high-asset divorce cases, though, figuring out how to properly divide wealth can be incredibly complex and expensive. A divorcing couple usually prefers to save money wherever possible. As a result, the goal is generally to come to a fair and reasonable resolution sooner than later. If you are facing a divorce with high net worth, consider contacting a Colorado family law attorney experienced in high net worth divorce cases with Colorado Divorce Law Group by calling (720) 593-6442 today.

What Is a High-Asset Divorce?

In 2021, the United States Census Bureau reported that the divorce rate was 6.9 divorces per 1,000 women. Every type of divorce was calculated in the data for 2021, including high-net-worth divorces. A high-asset divorce is usually defined as a divorce between spouses who either earn over $500,000 annually or have a net worth of over $5 million. High-net-worth spouses typically have complex assets as well as intricate and nuanced income sources.

How Mediation Could Help High-Asset Divorce Cases

For most divorcing spouses, keeping the details of the marriage dissolution private is ideal. However, this is not possible when a divorce case goes to trial. During a trial, all the information related to the divorce becomes public knowledge that anyone can access. Through mediation, however, a resolution can be reached privately.

Additionally, depending on the circumstances, one spouse may take a large financial loss when the judge issues a divorce decree or when the spouses reach a settlement. Particularly for that spouse, minimizing the costs associated with the divorce process will be ideal. Mediation, when successful, can be a means to reduce the legal costs and fees that can arise if a divorce case goes to trial. If you would like to explore options for mediation to resolve your high asset divorce issues, an attorney from the Colorado Divorce Law Group may be able to help.

How Does Mediation Work?

A divorcing couple may not have the ability to amicably work things out on their own. However, they may be able to reach an agreeable solution to each of the issues they face regarding the divorce with the help of mediation. Mediation is an alternative divorce settlement method that allows willing spouses to negotiate and finalize their divorce settlement outside the courtroom. With mediation, the spouses also have more control over the outcome than they would in court.

The benefit of the mediator comes from having a professional with experience in reducing conflict to keep everyone on track when disagreements or contentious subjects arise. Through guided and managed negotiations, each spouse may be better able to compromise. The mediator is not associated with either spouse but, rather, is a neutral third party who works with both sides, allowing each to present his or her position on each matter.

Top Benefits of Mediation

Mediation may not be the best approach, or the most practical, for every couple. Still, many couples find it worthwhile to try mediation before proceeding to court to resolve the remaining issues. When mediation works, the divorcing spouses may experience several benefits.

Saving Money

A successful divorce mediation will be much less expensive than divorce litigation. Extra costs and legal fees, such as paying for expert testimony, will not be necessary in mediation.

Saving Time

Mediation can help the spouses reach an agreement, which typically takes much less time than litigation. When a divorce goes to trial, there is the potential for the case to drag on for months or even years.

Collaborating for Success

When each spouse is willing to come to the mediation table in good faith and negotiate the issues related to their divorce, they have a greater chance of working together to agree on the various aspects of dissolving their marriage. The mediator will be a neutral party who is skilled at encouraging compromise between the spouses. Additionally, there will likely be a shared motivation to preserve wealth by coming to a resolution through mediation versus spending additional money on further divorce proceedings.

Improving Communication

A mediator will support and promote effective and productive communication between the parties. With guidance from the mediator, who objectively gives each spouse time and recognition, the spouses can experience better communication, which can make it easier to come to an agreement on otherwise contentious matters.

Securing Confidentiality

Since mediation can be done behind closed doors, the details of the negotiations will not be made public knowledge. Divorcing couples often prefer to keep their divorce and marital conflicts nonpublic. Mediation can help to maintain privacy and confidentiality, which can be especially important for high net worth individuals.

Top 3 Financial Divorce Mistakes To Avoid

No matter how much wealth a couple has, it is always a good idea for them to understand how to preserve it. Several financial mistakes made during the divorce process can cause great harm to either or both of the divorcing spouses. Some of the mistakes to be aware of include:

  • Rushing the process
  • Refusing to try alternative dispute resolution methods
  • Failing to identify hidden assets

Rushing the Process

Divorcing spouses typically do not want the proceedings to drag on and on. However, rushing the process could have a high financial cost. One spouse may make rash decisions for the sake of saving time. The desire to end the marriage as quickly as possible can result in an agreement or divorce decree that is unfavorable for one side.

Refusing To Try Alternative Dispute Resolution Methods

Some couples could have numerous disputes in a relationship that is so contentious that they are unwilling to attempt alternative dispute resolution methods like mediation. This may mean that litigation is unavoidable along with the additional costs and time that come with it.

Failing To Identify Hidden Assets

One or both spouses may have hidden assets. If these are not properly identified during the divorce proceedings, then one spouse may have less than he or she was actually entitled to receive after the marriage is dissolved.

Speak to a High-Asset Divorce Attorney Today

The National Library of Medicine (NLM) describes in a study the difficulties of getting a full and accurate count of the true number of divorces in the United States. Despite this, the reporting that exists shows that not every marriage is meant to last. High asset divorce cases and other types of divorce happen with great frequency. When navigating complicated divorce situations, as is usually the case with wealthy couples, experience matters. For assistance with a high-net-worth divorce, consider reaching out to an experienced attorney at the Colorado Divorce Law Group by calling (720) 593-6442 to schedule a consultation.