Preserving Wealth and Harmony:
Navigating Family Offices in High Net Worth Divorces

For high net worth couples, managing wealth can be a complex endeavor. Many opt to establish a “Family Office” to handle their financial affairs. This dedicated entity takes care of investments, estate planning, and even lifestyle management. However, when divorce is on the horizon, what happens to the Family Office?

In the midst of a high net worth divorce, the fate of the Family Office can be a source of contention. Divorce mediation can provide a constructive avenue for resolving such matters. Mediation encourages open dialogue between the divorcing spouses, helping them reach mutually agreeable solutions.

For example, one approach may be to continue its operations with shared responsibilities, promoting financial stability and seamless wealth management for both parties’ and their children’s financial security. This collaborative decision can ensure the continued well-being of the family.

In cases where maintaining the Family Office may not be feasible, mediation can lead to creative options. Working closely with a Certified Divorce Financial Analyst (CDFA) can help you properly value complicated assets typical of those with a Family Office.

For many years I’ve been working closely with Nancy Hetrick, CDFA® MAFF® AWMA® to help couples design these creative arrangements. Nancy explains the role of a CDFA as follows:

“With complicated assets typical of those with a Family Office, a CDFA can help you properly value each one. They can work with other professionals to value private equity interests, real estate holdings, and other unique investments. Perhaps the most important area of focus for a high net worth couple is taxes. A CDFA can help you understand the tax consequences of dividing assets, especially those managed within a family office. They can help you strategize so you’re not hit with an unexpected tax bill.

If you’re used to a certain lifestyle, a CDFA can help project what your financial situation will look like post-divorce. They can help you adjust to your new financial reality without feeling like you’ve been thrown into the deep end without a life vest.”

For more information on how to work with a mediator and CDFA to safeguard your family, your wealth and your legacy, please Schedule a Consult or Contact us at 480-780-3798.

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