In High-Asset Divorce, Mediation has Many Advantages
High-asset divorces don’t have to go to court. In fact, there are many advantages to mediation over litigation, especially when significant net worth is at stake. Here in Bucks County, PA many couples with significant wealth choose to use my mediation services for their divorce.
High-net-worth individuals (HNWI) are loosely defined in the financial services industry as having liquid assets significantly above average, with yearly income in the high-6-figure or 7-figure range. These people also often have significant financial and physical assets, such as multiple 401(k)s, homes, and luxury items. They may also own businesses or rental properties.
These complicated financial conditions may appear to require litigation and a court appearance, but as long as both parties in the divorce are willing to work together, mediation is a better option, for many reasons.
The Difference Between Mediation and Litigation
A mediator works with both spouses as an arbitrator and go-between, not taking sides but rather guiding them through the process, asking the right questions, and directing everything to the advantage of both parties.
In litigation, however, each spouse must retain his or her own lawyer, and the job of that lawyer is to do whatever is legally and ethically possible to win the case and get the most for his or her client.
Advantages of Mediation over Litigation
Based on the way mediation works vs. litigation, it’s clear that one of the greatest advantages of mediation is less drama and pain. Mediation does not set up an adversarial condition in which one person is pitted against another and both are trying to win – and when one person wins, by definition, the other loses. This can create a negative atmosphere during an already painful time.
In the process of litigation, you and your spouse will both undergo tremendous scrutiny, and at times your actions will be questioned. In mediation, you will not have to turn over records of your phone calls or social media use, nor justify how you have spent your money.
Mediation is private. Court proceedings become a matter of public record, so anyone – friends, family, reporters, business rivals – can easily access everything. With mediation, no one will know the details of your divorce or the reasons behind it.
With mediation, you are not tied by the laws of Pennsylvania regarding asset division or child custody. When assets are high and complicated, you want to have the flexibility to determine what is best for your future and the future of your children. You want to be in control.
Finally, mediation is faster and less expensive. You don’t need to pay for multiple lawyers or retain separate financial experts. There is no time spent waiting for filing, discovery, briefings, and court dates. Everything takes place according to your schedule and your timeframe.
We encourage you to consider mediation, if possible, to settle your divorce more quickly and out of court. But no matter what assistance you need to help you through your divorce, reach out to us at the Law Office and Mediation Services of Elissa C. Goldberg for a consultation to determine the best route for you.