Navigating High Net Worth Separations in BC
Separations and divorces are rarely simple, especially when it involves a high net worth family with complex financial issues. When one or both parties have significant assets or financial complexity, the stakes rise considerably. In BC, high net worth separations are governed by the same laws as other family law matters under the Family Law Act, but the process can be far more intricate due to the nature of the assets and relationships involved.
Why High Net Worth Separations Are More Complex
Unlike the average separation, high net worth cases often involve:
Multiple real estate holdings, sometimes in different jurisdictions
Privately held businesses and shares
Trusts and family wealth planning structures
Significant investment portfolios
Corporate structures that obscure ownership or income
Pre-existing marriage or cohabitation agreements
Tax implications of dividing or transferring assets
These elements make it necessary for individuals to work with highly specialized legal and financial professionals who understand how to value and divide complex assets fairly, while also minimizing tax consequences and long-term financial harm.
Marrying Into a High Net Worth Family: Protect Yourself
If you're entering into a marriage with someone from a wealthy family, it’s common — and advisable — for that family to request a marriage agreement (or prenup). This agreement outlines what will happen in the event of a separation or divorce. While it may feel unromantic, it's a practical step in high asset relationships.
Here are key things to consider if you are the partner marrying into wealth:
Always get your own independent legal advice. Consider using your own lawyer and not one recommended or paid for by your partner’s family, unless there’s an agreement that the specific lawyer, although being paid by your partner’s family, confirms that they only represent your best interests. You need someone who is solely looking out for your interests and who is familiar with family law. This is especially important when there are different power dynamics.
Always get full financial disclosure. You want to know what you’re signing off on or giving away. You want to know the full financial picture before agreeing to any terms.
Understand what you’re signing. Don’t be pressured into agreeing to terms you’re uncomfortable with or don’t fully understand.
Ensure the agreement is signed well in advance of the wedding. Courts are more likely to uphold a marriage agreement when both parties had sufficient time to consider its terms.
Maintain financial independence. Build your own savings and keep accounts in your name. Know what giving up your career means for your financial future.
Establish and maintain good credit. Have utility bills or credit cards in your own name and pay them on time. This protects your financial future, in case you need to obtain credit in the future, especially if you’ve been out of the workforce for some time and do not have a strong history of earnings.
The Role of Experts in High Net Worth Separations
Because of the complexity of assets in high net worth separations, a range of professionals may be brought in to provide expert opinions and assistance:
Forensic Accountants: Track down hidden assets or unreported income.
Corporate Lawyers: Interpret corporate documents, shareholder rights, and ownership interests.
Tax Planning Lawyers: Advise on the tax consequences of dividing certain assets or making transfers.
Estate Planning Lawyers: Understand how trusts and inheritance factor into the separation. Understand how a separation agreement can bind an estate.
Business Valuators: Accurately value private businesses, including goodwill and future earning potential.
Real Estate Appraisers: Provide accurate, fair market value for residential or commercial properties.
Working with a team of experts, in addition to your family lawyer, ensures that all assets are fairly valued and that you understand the consequences of each decision you make.
Child Support for High Income Earners
BC uses the Federal Child Support Guidelines to determine child support. However, when a parent earns more than $150,000 per year, the court has discretion to depart from the standard tables.
The court will look at:
The condition, means, needs and other circumstances of the children who are entitled to support.
The financial ability of each spouse to contribute to the support of the children.
In these cases, it’s essential to provide full and accurate disclosure of income and to be prepared for a nuanced conversation around support obligations.
Compensatory Spousal Support
In high net worth marriages, one partner often sacrifices their career or educational opportunities to support the family — managing the household, raising children, or supporting their partner’s business ventures and career. If the marriage ends, that partner may be entitled to compensatory spousal support.
This type of support acknowledges:
Lost earning potential
Missed career advancement
Contributions made to the success of the other spouse's career or business
It is designed to help balance the economic consequences of the separation and restore some measure of fairness.
Be Prepared for Lengthy (and Costly) Litigation
Because of the number of moving parts — from asset tracing to valuation disputes to expert reports — high net worth separations can end up in long and expensive legal battles.
It is not uncommon for these cases to drag on for months or even years, especially when one party is unwilling to disclose information or cooperate in good faith. Legal fees, professional reports, and court costs can add up quickly, making it even more important to consider efficient alternatives when possible.
Litigating your family law matter may mean that your private information becomes public court record.
Protecting Your Privacy: Alternate Dispute Resolution Options
If privacy is a major concern — and it often is in high net worth cases — consider alternative dispute resolution (ADR) options that keep your matter out of the public court system.
4-Way Meetings
You and your lawyer, together with your partner and their lawyer, can get together in-person or virtually and discuss the issues arising from your family law matter. During the 4-way meeting the parties can work with their lawyers to come to a resolution of their family law matter.
Collaborative Law
In collaborative family law, both parties agree not to litigate. Instead, they work with a team of professionals, including lawyers, financial advisors, and mental health therapists, to reach an agreement.
This process is confidential and cooperative. It can be especially valuable when both parties want to preserve a working relationship — for example, in co-parenting scenarios.
Mediation
Mediation involves an unbiased third party who helps the spouses work toward a mutually acceptable resolution. While the mediator does not make decisions for the parties, they facilitate productive conversations and help clarify legal and emotional issues.
Mediation-Arbitration
If mediation fails, you can move to med-arb, a hybrid process where an arbitrator steps in to make a binding decision. This offers the privacy and speed of ADR with the finality of a court judgment.
Final Thoughts
High net worth separations in BC require a strategic, informed, and well-supported approach. Whether you're entering a marriage involving significant wealth or navigating a complex divorce, make sure your legal and financial foundation is solid.
The stakes are high — but with the right planning, team, and mindset, you can protect your rights, preserve your dignity, and move forward with confidence.
