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Why are High-Net worth divorces usually settled out of court?

October 13, 2021 | Divorce, Firm News

One common theme with High-Net worth divorces is that couples often settle out of court. This means the couple works together to create their divorce agreement without needing a judge to make any rulings.

According to Insider, one of the reasons this may happen is the attitude of the court in High-Net worth divorce cases.

No sympathy

Judges proceeding over divorce courts see a range of financial situations. They likely have seen a struggle with a family that is teetering on poverty and trying to divide assets so each person has at least something, even if it is little, after the divorce.

These judges have little sympathy for wealthy people who are arguing over second homes and investment accounts. They will not usually have patience with bickering in such cases, and therefore, the judges may be more likely to strictly follow the law instead of considering the need.

They often like to move these couples through quickly because they know the decisions they make will not leave one of the partners destitute or in a bad financial place. They want to save time on their schedule for more demanding cases.

Less attention

Settling out of court also may occur more often in High-Net worth situations because it attracts less attention. High-profile couples may do it to keep the media away and to keep their finances private as long as possible. Settling out of court allows a couple to work in almost secret to finalize everything before it becomes public record and the latest news headline.

Settling out of court can be quite beneficial for wealthy couples because it avoids allowing a judge to have control and can keep the situation private for as long as possible.

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