Separation and divorce at the top end of town
Divorce can be an expensive business, particularly if you have a lot of money.
When tech giant Bill Gates divorced his wife Melinda French Gates in 2021, she walked away with $76 billion. Similarly, when Amazon boss Jeff Bezos and his wife MacKenzie Scott split up in 2019, she received $28 billion.
And when Australia’s own Rupert Murdoch divorced his second wife, Anna Maria Torv in 1999, she left the marriage with $1.7 billion.
Divorcing a “high-net-worth” individual can be a complicated and daunting process. It’s important to understand the implications of financial agreements, pre-nuptial agreements, and the tax implications of dividing large asset pools.
In addition to property settlement, the former spouse of a high-net-worth individual may be entitled to continuing financial support by way of spousal maintenance. This may be appropriate where there is a substantial disparity in income or assets between one spouse and the other.
Child support is also a key consideration for high-net-worth individuals, and will take into consideration issues such as school fees, and who pays for any extracurricular activities the children take part in.
Under Australian law, there’s a well-established framework when determining how assets are divided, and it’s not always a straight 50/50 split. In divorce cases with a lot of money and assets at stake, the court will consider several factors including:
- Whether a property adjustment between the parties is appropriate
- Identification of the existing legal and equitable interests in property of the parties to the marriage
- The financial contributions of both people to the relationship, including income earned, investments, and managing a business
- Non-financial contributions such as homemaking, raising children, maintaining a home and supporting the other person’s career or business
- Consideration of factors relevant to current and future circumstances including the effect of family violence on a party, each person’s earning capacity, the need to care for children, and maintain a certain standard of living that is reasonably in the circumstances
- What is just and equitable in the circumstances.
One of the most challenging aspects of divorce in a wealthy family is identifying and valuing business assets. That could include a family business, businesses with a third-party involved, Trust structures and shares in a private or publicly listed company. The Court may appoint an expert to value the business and other assets, and it’s important to consider the impact of a sale or restructure on the future of the business.
The court will also take into consideration whether the business was built up before, or during the marriage, and how involved each person was in the running of the business.
If one spouse is attempting to hide assets, the court has the power to order a full financial disclosure. If you suspect assets are being hidden, or your former spouse is providing intentionally misleading information, you need an experienced family lawyer – and possibly a forensic accountant – to help you.
High-net-worth couples often choose to draw up pre-nuptial agreements prior to a relationship commencing to clarify the division of assets in the event of separation or divorce.
Separation and divorce which involve wealth, extensive property, assets, child support and spousal maintenance comes with some unique challenges. With the right legal advice, you can successfully come out the other side of this emotional time.
To speak with one of our team of family law experts, contact our office today on: (07) 3221 4300 or email: [email protected]
