Video Summary:

High-net-worth divorces present unique challenges, particularly in asset valuation and determining the financial needs of the lower-earning spouse. Properly assessing businesses, trusts, and investments is essential to ensure a fair distribution of wealth. Additionally, spouses accustomed to a luxury lifestyle may struggle to define their actual financial needs post-divorce. Business managers and financial experts can play a crucial role in clarifying these expenses.

Video Transcript:

The two biggest challenges in high-net-worth divorce cases are valuing assets and determining the financial needs of the lower-earning spouse.

Accurately valuing assets is crucial because high-net-worth divorces often involve trusts, closely held businesses, family businesses, and companies started during the marriage that have significantly grown in value. These assets must be properly assessed to ensure a fair division.

Another major challenge is determining the actual financial needs of the economically disadvantaged spouse. In many cases, the lower-earning spouse has become accustomed to a lifestyle funded by the higher-earning spouse and may not fully understand their monthly expenses. Unlike individuals who manage household finances, high-net-worth spouses often have multiple homes, luxury travel, and staff handling their financial affairs. They may not know the costs of daily living, making it difficult to establish an appropriate financial arrangement post-divorce.

Having a business manager can be helpful, as they provide a clear understanding of expenses and financial needs. However, when no such records exist, assessing lifestyle expenses for the lower-earning spouse becomes a complex task in high-net-worth divorces.