High-net-worth divorces are rarely straightforward - especially when the couple’s wealth spans across high-value, illiquid, or volatile assets.
These cases require a deep understanding, not only of family law but also of business valuations, tax implications, and long-term financial planning.
But - courts are evolving in how they approach such cases, and at Coles Miller we work closely with clients with high-net-worth, ensuring their interests are fully protected.
What makes these cases so complex?
Unlike standard divorce cases where the division of wealth often involves property, savings, and pensions, high-net-worth divorces may also include:
- Business interests (especially in family-run or private companies)
- Offshore assets and trusts
- Illiquid investments such as shares in private firms
- Real estate portfolios or foreign property
- Luxury goods, art collections or cryptocurrency
- Deferred remuneration like stock options or bonuses
The illiquidity and fluctuating value of these assets make them difficult to divide fairly - especially when one party controls or better understands the asset in question.
Standout case study:
Sir Chris Hohn's divorce from Jamie Cooper in 2014 not only marked one of the largest financial settlements in UK legal history but also had significant implications for philanthropic organisations they co-founded.
Background
Sir Chris Hohn, a billionaire hedge fund manager, and Jamie Cooper, an American-born philanthropist, were married for 17 years and have four children. Together, they co-founded the Children's Investment Fund Foundation (CIFF) in 2002, which became one of the UK's largest charitable foundations, focusing on improving children's lives globally.
Divorce settlement
In December 2014, the High Court ordered Hohn to pay Cooper £337 million (approximately $530 million at the time), making it the largest divorce settlement awarded by a British court. The settlement highlighted disputes over the couple's substantial assets, including their philanthropic ventures.
Impact on charitable foundations
A significant aspect of the divorce involved the future of CIFF. As part of the settlement, it was agreed that CIFF would grant £277 million to Big Win Philanthropy, a new charity established by Cooper. This decision required approval from the Charity Commission or the courts due to the substantial sum and the potential conflict of interest, as both Hohn and Cooper were trustees of CIFF.
In 2017, the High Court approved the grant, emphasising the importance of resolving conflicts within charitable organisations and ensuring that philanthropic funds are used effectively.
Lessons for high-net-worth individuals
This case shows the complexities that can arise when personal relationships are combined with philanthropic endeavours. For high-net-worth individuals involved in charitable activities, it's important to establish clear structures and contingency plans to steer through potential personal disputes without compromising their philanthropic work.
How courts approach division
As Nicky Hunter highlighted in Solicitors Journal* recently, family courts are increasingly aware of the nuances of complex wealth. They consider not only the current value of an asset but also its risk profile, future income potential, and accessibility. In many cases, expert valuations are essential. The courts aim for a fair division - not necessarily equal - and may need to offset illiquid assets with other forms of compensation such as cash or real estate.
Importantly, full disclosure is key. Failure to disclose complex assets - whether through offshore vehicles or creative accounting - can result in costly consequences, including setting aside financial orders and facing enforcement action.
The role of experienced legal advice
At Coles Miller, our family law team works alongside forensic accountants, business valuers, and tax advisors to deliver strategic solutions tailored to your circumstances. Whether you are the financially stronger party or the one with less access to the assets, we advocate for your rights and provide clarity throughout the process.
We are also sensitive to the fact that divorces involving complex wealth often carry emotional weight and significant personal disruption. Our solicitors bring a human touch to even the most high-value cases, ensuring you feel supported.
Getting prepared
If you’re approaching a high-net-worth divorce, early legal advice is essential. Preparation can include:
- Gathering and valuing documentation for all assets
- Considering tax-efficient settlement structures
- Evaluating the enforceability of pre- or post-nuptial agreements
- Exploring alternative dispute resolution, such as arbitration or mediation, which may better preserve privacy and control
Speak to us today
If you're facing a high-net-worth divorce, our experienced team at Coles Miller is here to help. We understand the stakes, the law - and most importantly, the people involved. Contact us to arrange a confidential consultation and find out how we can support you.
Lindsey Arnold (Associate, Bournemouth office) is a highly experienced family lawyer who specialises in matters including divorce, dissolution of civil partnerships, separation, financial remedy proceedings, complex family law cases involving children, cohabitation agreements, adoption, pre/post-nuptial agreements, jurisdictional issues and family injunctions.
- Read more here: https://www.solicitorsjournal.com/sjarticle/dividing-complex-wealth-in-divorce
