Is mediation a good choice for a high-asset divorce?

Divorce is a challenging process. It can become even more complex if you and your spouse have substantial assets.

Mediation can still be a viable option in a high-asset divorce despite the complexities. You can use this process to avoid lengthy court battles and maintain control over the decision-making process.

Complications of high-asset divorce

High-asset divorces can involve considerable assets that go outside of the average holdings. Assets such as stock options, business interests, real estate partnerships, vacation homes, collectibles and tax benefits can make divorce negotiations challenging. When you decide to part ways with your spouse, it is essential to consider the division of these assets. A skilled mediator understands these valuations and can help you reach a fair settlement.

Benefits of mediation

Although divorce rates decrease somewhat with higher incomes, when earnings exceed $600,000, the divorce rates climb back up to 30%. Mediation provides a non-adversarial environment where both parties can engage in constructive dialogue. Some key advantages include:

• Control: You and your partner have more control over the outcome as you both actively participate in decision-making
• Privacy: Personal details and financial information are confidential
• Efficiency: This process often takes less time than traditional court procedures
• Cost-effective: Mediation is generally less costly than litigation, as it avoids court fees
• Preservation of Relationships: Mediation encourages better communication, which can be particularly important if you have children

The structured process of mediation can reduce the stress of your divorce proceedings.

Process of divorce mediation

When you choose mediation, a neutral third party facilitates discussions between you and your spouse. You both meet with the mediator for an initial consultation to discuss the process and establish ground rules. The mediator helps you to compile a comprehensive list of assets and debts, ensuring complete transparency.

With the mediator’s guidance, you and your spouse discuss your interests and concerns, aiming to reach a mutually beneficial agreement. Once you both agree, the mediator documents a settlement for review by your legal advisor. You can then submit the contract to a court for finalization.

High-asset divorces can be emotionally draining and financially burdensome. Mediation offers a path to resolution that can minimize the negative impacts.