Collaborative Divorce: A Viable Option for High Net-Worth Couples
Contrary to popular belief, divorce is not always an ugly, highly confrontational affair. According to a Forbes report in 2022, approximately 90 percent of the half million divorces in the United States yearly are uncontested. Of these uncontested cases, some were settled because both parties agreed on everything, or in other cases, one party simply never responded to the divorce filing and failed to appear in court.
A percentage of uncontested divorces are collaborative divorces. Collaborative divorce involves the married parties going through an agreed-upon dispute resolution process to settle all issues related to dissolving the marriage. These proceedings are not done in a courtroom before a judge; instead, they are conducted privately between the parties, with their lawyers and a team of professionals, including forensic accountants and appraisers.
Collaborative divorce requires that the parties sign a binding agreement to participate in the collaborative divorce process. Everyone then comes together to decide on issues, such as property division, spousal support, and child-related matters, negotiating compromises until both sides are amenable to the final result.
The contract binding the parties to this collaborative agreement also includes language mandating that the parties must hire new lawyers and other professionals if the collaborative process does not work. The fear of that new huge expense encourages parties to keep coming back to the table and trying to resolve their issues throughout the process.
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