Does Mediation Work for High Net Worth Divorces?

New York has begun implementing the new presumptive Alternative Dispute Resolution program. This initiative requires civil litigants to try solving their cases through mediation, including divorces. The goal is to clear up the court calendar for more urgent and pressing family law cases, such as visitation and custody matters, temporary restraining orders, and others.

Advantages of Divorce Mediation

Divorce mediation has several advantages. For one, there’s less cost since you don’t have to go to trial and hearings.

Second, you get to maintain your privacy, which is paramount for most high net worth individuals. Court pleadings are public records. So if you choose litigation, anyone can access your divorce files, save for a few exceptions like sworn financial documents. In a mediation, everything remains private, helping you protect your name and family amid the controversies that may arise during your divorce.

But some couples have complex finances and assets, making division of property and support payments difficult to settle. So can a divorce attorney mediate complex, high net worth cases?

A High Net Worth Divorce Mediation is Possible

A high net worth divorce mediation is possible when both parties are willing to be as transparent and civil as needed. One of the challenges in high net worth divorces is financial disclosure. Both spouses must present information relating to bank accounts, pensions, stocks, retirement, properties, assets, debts, and other relevant financial documentation.

Financial disclosure is crucial to arrive at a fair and mutually acceptable settlement for child support and custody as well as spousal maintenance.

In most marriages, it’s common for one spouse to be more knowledgeable about family assets, liabilities, and other finances. The risk is that outside of a litigation process, the disadvantaged spouse may be denied full access to relevant financial information. If you don’t have all the details you need, you’ll have to investigate first before agreeing to a property division proposal.

When financial disclosure isn’t a problem, it becomes easier for a high net worth couple to fairly divide their assets.

Dividing Marital Property through Mediation

Division of marital assets has a two-step process. First, you must determine the value of each of your assets. Then, you’ll decide who gets which and what is sold and/or traded off in value for another asset.

The mediator won’t assign the value of your properties. They don’t decide how the assets will be divided either. Their job is to guide you in using a range of experts who can assist you in dividing marital property fairly.

Financial specialists, accountants, business appraisers, and actuaries are commonly present in high net worth divorce mediations. They help you place a precise cash value on all of your assets, including pensions, whole life insurance policies, artworks, jewelry, real estate property, business, and even your children’s belongings.

It’s common for certain properties to create conflict between spouses, especially when both parties have strong sentimental attachments with the asset. The mediator, along with the other experts, will accommodate your desires as well as the value of the property to help you achieve a common ground.

So much of divorce mediation relies on the mediator’s capability to stay impartial and moderate the proceedings. You need an experienced lawyer who’s capable of handling a divorce as complex as yours.

High-Profile Divorce Attorney in Nassau County

The Law Offices of Ian S. Mednick is knowledgeable in the intricacies of New York divorce laws. Ian has plenty of experience working with high net worth couples and mediating divorces. He’ll help you arrive at a mutually acceptable settlement.

Call us today for a free consultation.