Dividing finances after a divorce is rarely simple. For high-net-worth couples, the process can be even more complex and stressful. You may have significant assets, investments, or business interests that need to be dealt with fairly.
Without specialist advice, you could lose control of your company, see your pension divided, or even be forced to sell the family home. A poorly handled financial settlement can have lasting consequences for your business, your lifestyle, and your future security.
A high net worth divorce typically involves, but is not limited to, property portfolios, company shares, pensions, luxury items, and sometimes international wealth. The stakes are high, and so are the risks of mistakes or unfair settlements which is why it is prudent that early specialist advice is sought.
In this guide, we explain how assets are divided in high-value divorce cases. You’ll learn:
If you are concerned about your assets, this guide explains what to expect and how to protect your interests. Still need more help? Speak to our divorce experts.
In England and Wales, a high net worth divorce usually involves couples with combined assets valued at £1 million or more. This figure is commonly used by family courts and specialist solicitors to describe cases where wealth, property, and investments go beyond a typical financial settlement.
According to the Family Court Statistics Quarterly, a growing number of divorces now involve more complex financial matters as overall household wealth increases.
High net worth divorces are more than just about higher numbers. These cases often include:
Ownership of businesses or company shares
Property portfolios, including second homes and investment properties
Significant pension funds, including SIPPs or overseas pensions
Substantial investments, such as stocks and bonds
Luxury assets like classic cars, jewellery, and fine art
Offshore assets or international property holdings
Considerations around private school fees and maintaining a higher standard of living
Because of this complexity, courts tend to take a more flexible and tailored approach when deciding financial settlements. The focus shifts from simple division to addressing long-term needs, fairness, and preserving lifestyles where possible, especially when large wealth disparities exist between spouses.
One of the first steps in any high-net-worth divorce is to separate matrimonial property from non-matrimonial property. This distinction plays a key role in how the court approaches a financial settlement.
Matrimonial assets are generally those built up during the course of the marriage. These are usually considered part of the “marital pot” and are available for division between both spouses.
Common examples of matrimonial property include:
The family home, regardless of whose name is on the deeds
Joint savings and investments built up during the marriage
Pensions accrued while married
Business interests started during the marriage
Luxury assets purchased together, such as vehicles, artwork or jewellery
These assets are almost always shared equally unless there is a good reason to depart from a 50/50 division. The governing legislation, Matrimonial Causes Act 1973, provides statutory criteria which ultimately determine whether are not 50/50 should be departed from. This is explored further below.
Non-matrimonial assets are generally considered outside the marital pot and may be excluded from division, depending on the circumstances.
Examples include:
Inheritance received by one spouse before or during the marriage
Pre-marital property owned before the relationship began
Gifts from third parties intended for one spouse only
Family businesses or trusts established before the marriage
Offshore assets that were ring-fenced prior to marriage
Yes but this can be a complex area to navigate. Assets can lose their protected status if they are mixed or ‘mingled’ with matrimonial property. A few examples are as follows:
Using inherited money or pre-marital savings to buy or renovate the family home can make those funds subject to sharing
Adding a partner’s name to a pre-owned house can transform it into a matrimonial asset
Moving funds into joint accounts can also remove non-matrimonial protection.
As such, how you treated your assets during the marriage can significantly affect how they are divided. What should be noted, however, is that recognition that an asset has been ‘matrimonialised’ does not automatically mean equal division depending on the initial source of that asset which will be a relevant consideration.
The above are a few examples only and the treatment of matrimonial and non-matrimonial property falls on the facts of each case.
In England and Wales, there is no set formula for dividing assets in divorce. Instead, courts follow the principles set out in Section 25 of the Matrimonial Causes Act 1973, which require the judge to consider all the circumstances of the case, with the welfare of any children being the first consideration. Judges will also consider:
Income, earning capacity, property and other financial resources
Each spouse’s needs, obligations, and resources
The standard of living during the marriage
The length of the marriage and contributions by both parties
Ages of the parties and the duration of the marriage
Financial and non-financial contributions, such as caring for children
The conduct of each parties, if applicable.
The overall goal is to achieve a fair financial settlement, with particular consideration, particularly in cases with a wider asset base and resources, of whether one party needs compensation or ongoing financial support.
The court will typically start with the principle of equality, especially where both parties contributed equally to the marriage - whether financially or by caring for children and the home. This is known as the “sharing principle.” The courts do not discriminate between financial and domestic contributions.
Needs – Where one spouse requires more to meet housing needs or care for children. This will generally apply in cases with more modest assets and the fundamental task of the court will be to meet basic needs.
Compensation – Where one spouse gave up a career or earning potential.
Sharing – Applies to assets generated during the marriage, but courts may exclude pre-marital wealth or protected business interests if not required to meet needs.
A key factor in high-value cases is the standard of living. Courts will avoid forcing a financially weaker spouse to endure a significant drop in lifestyle, especially after long marriages.
Examples of how this plays out:
A spouse may be awarded a larger share of liquid assets to continue living comfortably.
Maintenance payments may be higher to maintain private schooling or luxury accommodation.
The primary carer of children is unlikely to be forced to drastically lower their living standards post-divorce.
Judges use broad discretion in these cases, focusing on fairness rather than rigid equality.
In a high-net-worth divorce, the range of assets to consider is often wide and complex. Unlike typical divorces, these cases regularly involve business interests, property across multiple locations, high-value pensions, and luxury possessions.
The court considers the total wealth picture before deciding on a fair financial settlement. Below we break down the most common asset types.
Privately owned businesses and company shares are commonly involved.
Businesses may be professionally valued, considering both current market value and future earning potential.
Options during divorce include:
Buy-outs where one spouse buys the other’s share
Asset offsetting (e.g., retaining the business in exchange for other assets)
Share transfer arrangements
Looking at how this might play out in the real world we can use the following example. A spouse retaining full business ownership might agree to pay the other party a lump sum to balance the settlement. Early specialist advice is essential as there may be certain tax reliefs or tax considerations to be considered when proposing a settlement.
High net worth divorces often include:
Primary residence (family home)
Second homes
Buy-to-let investments
Holiday properties (UK and abroad)
All properties are independently valued at current market value.
For example, courts may award the family home to the primary caregiver, if appropriate, while investment properties are divided or sold to release equity for division.
Pension Funds and Investments
Frequently include:
Defined benefit schemes
Self-Invested Personal Pensions (SIPPs)
Private pension portfolios
Stocks and shares ISAs
Bonds and managed funds
Valued through Cash Equivalent Transfer Values (CETVs) although CETVs alone, particularly in cases with significant pension values, may not suffice and the instruction of a pensions expert, an ‘actuary’, may be necessary.
Courts can issue pension sharing orders i.e. to transfer a share of a pension to the other spouse or use offsetting methods if one party wishes to preserve their pension and the other retain additional capital. This will naturally fall on a case-by-case basis.
Trust assets are complex and consideration will be given as to whether it is a realisable resource for the spouse
Inheritances may be protected if kept separate, and not required to meet needs, but can become shareable if mingled with marital assets as discussed above.
Assets abroad are fully considered but are notably complex. These can include:
Offshore bank accounts
Foreign property holdings
International business interests
Full financial disclosure of such assets is required, including offshore structures.
Failure to disclose any assets, including international assets, can place the non-disclosing party in contempt of court and may well have cost consequences for that party.
High-value personal possessions which may be included:
Prestige vehicles
Fine art and antiques
Jewellery and designer goods
Items are typically appraised by independent valuers to determine their value to assist in division. In every category, accurate valuations and full disclosure is key to ensuring a fair outcome.
While they can influence the financial settlement, courts in England and Wales maintain discretion. Judges will consider these agreements but always ensure the overall outcome is fair.
Prenuptial agreements are not automatically legally binding in England and Wales, but they carry significant weight in court decisions.
The landmark case Radmacher v Granatino [2010] UKSC 42 established that courts should uphold prenups if:
Both parties entered the agreement freely, without pressure.
Each party fully understood the implications with the benefit of independent legal advice.
There was full and honest financial disclosure of their respective financial positions.
Prenups will generally be given significant weight unless they lead to an unfair outcome, particularly where one spouse’s basic needs would be unmet. It is recommended that prenups be updated following significant life events to ensure that the agreement still meets the needs of both parties.
It is also recommended that the prenup be entered into at least 28 days prior to the day of the wedding. This helps mitigates any claims of duress or undue pressure.
Postnuptial agreements are signed after marriage and can offer similar protections to prenups, especially after significant life events, such as:
Receiving a large inheritance
Building a business
Moving overseas
Birth of a child of the family
Significant changes in family wealth
Postnups help couples adapt to changing circumstances and can be used to clarify financial expectations without the need for divorce proceedings.
In high-net-worth relationships, postnups are increasingly common for preserving assets or updating financial agreements in long-term marriages.
While prenuptial agreements carry legal weight, they cannot override the court’s duty to achieve fairness. Some limitations include:
The court can disregard any term it views as unfair, particularly those that leave one spouse in serious financial hardship.
Prenups are less likely to be fully upheld in cases involving dependent children if it is unfair.
Judges may adjust the agreement to meet the “needs” of the financially weaker spouse, especially in long marriages.
For many separating couples, the family home is the most emotionally significant asset. In a high net worth divorce, the home is treated like any other property — it forms part of the marital pot and is subject to division by the court.
The court’s primary concern is fairness, with particular consideration for the housing needs of children. While the home may not automatically go to either spouse, the courts are careful to ensure that both parties, especially the main caregiver, have suitable housing after divorce.
Depending on the overall wealth and circumstances of the case, the court can take several approaches to the family home:
Sale of the property: Sale proceeds are divided according to the settlement to assist in the purchase of new homes for each spouse if neither wished to retain the family home.
Transfer to one spouse: Often awarded to the main caregiver of the children, with the other spouse compensated through other assets. For example, it may be appropriate for the remaining spouse to offer a lump sum to the departing spouse in lieu of their legal and beneficial interest in the home.
Mesher order (delayed sale): Sale is postponed until a trigger event, usually when the youngest child finishes education. Until then, the primary carer remains in the home.
The presence of dependent children plays a big role in decisions about the family home. Courts aim to:
Keep children in a familiar environment if possible
Minimise disruption to schooling and social life
Ensure both parents have appropriate accommodation post-divorce
In high-net-worth cases, the available resources often allow both spouses to rehouse comfortably, meaning outright sale of the family home is not always necessary.
The outcome depends on balancing children’s welfare, available housing alternatives, and the overall financial settlement.
In any divorce, both parties must provide full and honest financial disclosure to enable constructive negotiations. In high-net-worth divorce cases, this process is likely to be far more detailed and complex often because of the scale and variety of assets involved.
Financial disclosure is usually completed through a Form E, which requires each party to declare:
Income from all sources
Property ownership
Business interests and shareholdings
Pensions, trusts, and investments
Bank accounts (onshore and offshore)
Personal assets including jewellery, cars, and art collections
In high-value cases, it may be necessary to involve forensic accountants or independent expert valuers to assess business assets, complex investments, and property portfolios. Forensic analysis helps uncover hidden assets or assess true business valuations, particularly where assets are held internationally.
Failing to disclose assets properly can lead to:
Financial penalties or cost orders
Reopening of settlements if hidden assets are discovered after divorce
Full disclosure is not optional. It is a legal requirement. Honesty in this process is key to securing a fair and lasting settlement.
For business owners, divorce can raise serious concerns about protecting company interests. Courts treat business assets like any other property, meaning they may be valued and divided to achieve a fair outcome.
However, there are several strategies to protect business interests in divorce while still meeting legal obligations.
Buy-out agreements: One spouse buys out the other’s interest in the business, often using cash or offsetting with other assets (such as property or pensions).
Asset offsetting: The business owner retains the company but offers a greater share of other matrimonial assets to the other spouse.
Ring-fencing agreements: Pre- or postnuptial agreements can ring-fence business assets from division, particularly for family businesses established before marriage.
Gradual payment structures: Settlement payments are sometimes structured over time to avoid disrupting business cash flow.
Courts are reluctant to force the sale or destruction of a business. Their goal is to achieve a fair financial settlement without destabilising companies that provide income for both parties and, often, for employees.
Early specialist advice is essential to help high-net-worth individuals protect business assets while still ensuring a fair outcome for both sides.
In high-net-worth divorce cases, financial support after divorce is about more than just basic needs. It also takes into account lifestyle, educational choices, and long-term family commitments.
Maintenance agreements are either reached through negotiation or ordered by the court and are designed to ensure fairness, particularly where one spouse has a much higher earning capacity.
In high-value cases, spousal maintenance aims to maintain a similar standard of living to that enjoyed during the marriage, especially after long relationships.
Key considerations include:
The recipient spouse’s ability to support themselves
Sacrifices made (such as pausing a career to raise children)
The overall wealth available to fund maintenance
High earners may be expected to make significant monthly payments, especially where the other spouse requires time to retrain or adjust to life after divorce. In some cases, clean break settlements are preferred to end financial ties, often through a larger one-off lump sum payment.
For wealthy families, standard Child Maintenance Service (CMS) calculations often do not apply beyond certain income thresholds.
In high-net-worth cases:
Child maintenance is agreed privately or decided by the court
Additional amounts may be awarded to reflect the child’s accustomed lifestyle
The court may consider contributions towards private healthcare, housing, and travel expenses
It is common in high-value cases for the paying spouse to cover:
Private school fees
Tutoring costs
Sports and extracurricular activity expenses
University tuition
The court prioritises the continuation of children’s education, especially if they have always attended private schools. These costs are often treated as separate from standard child maintenance.
High-net-worth divorces frequently settle outside of court for several reasons:
Greater control over outcomes
Privacy from public court proceedings
Faster resolution, avoiding lengthy trials
Mediation offers a neutral environmet to agree on financial settlements amicably, with both parties retaining input over the result.
Abritration is a private, legally binding process where a specialist family law arbitrator makes decisions - similar to a judge but in a confidential setting.
High-value cases also benefit from private FDR (Financial Dispute Resolution) hearings, allowing early neutral evaluation with a specialist judge or barrister.
By choosing alternatives to court, couples often preserve more of their assets, reduce stress, and reach fairer, more flexible outcomes.
Seeking early legal advice can help you explore these private settlement options before litigation becomes necessary. Our Family Law & Children Solicitors are here to help you.
No, many high net worth divorce cases are resolved without court proceedings. Private negotiation, mediation, or arbitration are common alternatives, especially when privacy is important. Courts are only used when:
There is a dispute over financial disclosure
One party refuses reasonable settlement terms
Urgent legal action, such as freezing assets, is required
Settlement outside court saves time, legal fees, and stress. Early legal advice can help avoid unnecessary court proceedings.
Trusts are not automatically excluded from divorce settlements. The court examines:
Who benefits from the trust
How accessible the funds are
Whether the trust was set up to hide assets
If the trust provides regular income or capital access, it may be included in the marital pot. However, complex trust structures, especially offshore trusts, require careful analysis. Forensic accountants are often involved in high net worth divorce trust cases.
Inheritance, as explored briefly above, is usually treated as non-matrimonial property, especially if kept separate from joint assets. However:
If inherited money was used for family purposes (e.g., to buy a family home), it may be shared.
If it meets the needs of the other spouse, part of it could be utilised in the settlement and thus not ring-fenced.
High net worth divorces often involve disputes over inheritance, making early legal advice crucial.
Not necessarily. Courts aim to avoid damaging businesses that generate wealth for both parties. Options include:
One spouse buying out the other’s share
Offsetting other assets, like property or pensions
Structured payment plans
Keeping business shares intact with adjusted financial orders
Selling a business is a last resort in high net worth divorce cases, particularly where it provides ongoing income or employment.
Prenuptial agreements cannot fully override the court’s discretion. However, they are highly persuasive if:
Entered into voluntarily
Both parties received legal advice
Full financial disclosure occurred
Courts may adjust prenups to ensure fairness, especially where children are involved or one party risks significant financial hardship. While prenups strongly influence outcomes, they don’t provide absolute protection in England and Wales.
Divorce is difficult enough without the added stress of dividing complex assets. If you are going through a high net worth divorce, your financial future could depend on the decisions you make now. Whether you own a business, have international property, or simply want to protect your lifestyle, early specialist advice can make all the difference.
For example, we’ve seen clients who initially feared losing everything — but with our expert legal guidance, they reached settlements that protected their businesses, secured suitable homes, and ensured their children’s needs were met.
Contact our experienced Private Family Law team today for advice tailored to your circumstances.
