For the ultra-wealthy, the biggest challenge is not dividing complex assets but preventing public disclosure. The threat of "sunshine laws" opening divorce files to the press motivates both parties to collaborate, settle privately, and strategically "play keep away from the press."
Ultra-wealthy couples often use sophisticated, irrevocable estate planning vehicles (like SLATs and GRATs). During a divorce, the process of "blowing apart" these structures creates significant, often unforeseen, tax consequences and complications that must be carefully navigated.
The financial advisor acts as the "offensive coordinator," developing strategy. However, the divorce lawyer is the ultimate "quarterback" or "head coach." They coordinate all experts (accountants, valuators) and implement the plan, ensuring the client isn't burdened with project management during an emotional time.
Before focusing on insurance, advisors should analyze how assets are titled. Holding property as "tenants by the entireties," available in some states, offers superior creditor protection compared to "joint tenants," as it requires both spouses to be at fault for the asset to be at risk.
When valuing a private business for a divorce settlement, it is crucial to differentiate goodwill. Enterprise goodwill (brand value, e.g., State Farm) belongs to the business, while personal goodwill (value from the owner's reputation) is attributable to the divorcing spouse and must be carefully assessed for division.