The Evolution in Ultra-Wealthy Divorce: 8 Key Shifts

Divorce is taking a lot longer than it used to for the ultra-wealthy, and the trend seems unlikely to abate anytime soon.

As Michelle Smith, CEO of Source Financial Advisors, recently told ThinkAdvisor, many lawyers are now telling clients to expect their divorce process to last up to five years.

In Smith’s experience as a certified divorce financial analyst and a divorce mediator, there are a number of reasons that divorce can draw out when the couple has substantial wealth, and financial advisors now have to handle financial planning for a client who may be tied up in divorce court for years.

This is just one reason that Smith pushes the vast majority of her clients toward mediation, although that process can also be challenging.

Ultimately, Smith argues, advisors who have clients facing a divorce should do all they can to help them prepare for both the technical and emotional challenges that will inevitably arise. It is particularly important for advisors to provide clear insight and education to those divorcing clients who previously left the couple’s money matters to their spouse.

By ensuring that all sides have the information they need and a clear understanding of the post-separation financial picture, Smith says, the advisor can help clients make the most of a difficult situation. This, in turn, will strengthen the advisor-client relationship and potentially even lead to referrals from grateful clients.

See the slide show for a rundown of eight key ways that Smith has seen the divorce process evolve for ultra-high-net-worth clients. Most of these trends are here to stay, she argues, so it is important for advisors to study up.