Many high-net-worth couples considering divorce believe that the collaborative process is only suitable for straightforward, low-asset cases. This is actually a misconception. With collaborative divorce, so long as you have the right legal team and process, you can resolve complex financial issues while avoiding costly legal proceedings.
What is Collaborative Divorce?
In a collaborative divorce, both spouses work with their legal teams and other professionals to reach a mutual agreement out of court. The collaborative team typically involves each of the following parties:
- Each spouse and their attorneys
- Neutral financial professionals, such as CPAs
- Mental health professionals/divorce coaches
- Child specialists
- Other subject matter experts and professionals, as necessary for the situation
Collaborative divorce is entirely voluntary and confidential according to the Pennsylvania Collaborative Law Act of 2018. The Commonwealth also has a disqualification clause in these matters, which blocks the spouses’ lawyers from continuing to represent them if the process fails. This ensures that both parties stay committed to reaching an agreement.
What Counts as a Complex Asset in a Divorce?
Complex assets in a divorce may include any of the following items:
- Businesses, including family-owned companies, that require valuation by a professional
- Stock options, restricted stock, and deferred compensation
- Rental properties and vacation homes
- High-value retirement accounts and pensions
- Trusts
- Intellectual property and royalties
- Offshore assets
Pennsylvania follows the equitable distribution doctrine, which means that complex marital assets must be divided fairly between the spouses. This does not necessarily mean a 50/50 split.
How Does Collaborative Divorce Work with Complex Assets?
With the right approach, collaborative divorce can help spouses divide complex assets fairly. These are a few of the key benefits:
- Integrated Experts – By its nature, the collaborative process brings in experts who can help value the assets and anticipate the spouses’ financial situations after the split.
- Confidentiality – High-net-worth divorces often go hand-in-hand with sensitive business information. Under a conventional divorce process, your financial details may also enter the public record and become subject to greater outside scrutiny. Collaborative divorce allows you to meet your obligations and protect your privacy.
- Creative Solutions – Collaborative divorce allows you to negotiate customized solutions that a court may not be able to provide. You can work with your spouse to arrange business succession, divide structured assets more optimally, and draft support agreements that reflect your family’s unique circumstances.
- Time and Cost Savings – Court battles are both financially and emotionally draining to both spouses. Collaborative divorce lets you solve problems efficiently, protect your dignity, and pay less in legal fees.
When Is Collaborative Divorce Not the Right Option?
While collaborative divorce can work well for many couples, there are still situations where it isn’t the best path. If a case involves coercion, domestic violence, or a heavy power imbalance, it will likely be difficult for the spouses to cooperate with each other. The collaborative process may also fall apart if one spouse doesn’t give a complete financial disclosure or is unwilling to negotiate in good faith.
The spouses retain the option to resolve the divorce in court if necessary. However, the attorney who represented you in the collaborative process cannot represent you in traditional divorce litigation, and you cannot work with any other expert from the collaborative team.
Consult a Wexford, PA Collaborative Divorce Attorney
The Allegheny County attorneys of Standish & Conlin can guide you through the collaborative process. For over two decades, our woman-owned firm has helped clients resolve complex divorce issues with compassion, efficiency, and a careful eye for the details. Since we focus on family law and limit the number of cases we take, we can apply the most updated strategies to build a personalized path forward for you. Contact our office today for a confidential consultation.