What To Consider During A High Net-Worth Divorce? 

Whether you’re an entrepreneur, a high-earning professional, or someone with substantial assets, your divorce proceeding might involve a few extra steps. It is quite common in high net-worth divorces that both or one spouse hides assets fearing unequal division of assets. As your family lawyer in GTA, we don’t let that happen and will fight to get you every dollar you deserve. 

Any divorce that involves shared assets worth $1 Million or high is considered a high net-worth divorce in Canada. These assets can include real estate, investments, businesses, retirement accounts, and other valuable properties. International holdings and intellectual property are also considered assets. 

Since valuing businesses and intellectual properties is complicated and time-consuming, you and your spouse should agree to work together for a quicker divorce process. 

When dividing assets like investment portfolios, real estate, and retirement accounts, you may be subject to tax payments. Before you start property division, discuss with your lawyer and financial planner what kind of tax implications you can expect and if there’s a legal work around. 

High-profile individuals are often worried about their private information becoming public. If you share this concern, we recommend you consider mediation or collaborative divorce methods. Both these methods take place out of the courtroom, so your records stay private. You can also make your estranged spouse sign a non-disclosure agreement to prevent them from revealing details about your divorce or finances. 

Since high net-worth families are accustomed to a certain kind of lifestyle, the court will take on some extra work to assess your financial needs. Ontario courts will always put a child’s interests first. If you’re asking for extra spousal support, make sure to approach the discussion with proof and the reason behind your demand. Expect the other party to negotiate but you will find a solution with the help of a mediator. 

Work with your family lawyer and financial planner to create a post-divorce financial plan that helps you save money, make investments, and cause very little change to your current lifestyle. If you’re responsible for paying spousal support, look into what’s more beneficial to you – paying a lump-sum amount at once or monthly payments. 

All retirement plans available in Canada, including Registered Retirement Savings Plan (RRSP), Canada Pension Plan (CPP), and Old Age Security (OAS) are considered shared assets and eligible for division. You might be asked for a Qualified Domestic Relations Order to make sure the division follows federal guidelines. We’ve talked in detail about division of retirement plans in this blog and recommend you give it a quick read! 

If you or your spouse have international assets or dual citizenship, your divorce might be subject to different laws regarding divorce and asset division. Our family lawyers at Sterling Law have successfully handled numerous cases, collaborating with overseas law firms for over 30 years. 

If you have questions about your specific case, please book a consultation today.

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