Why Wealthy Couples Might Opt for a Collaborative Divorce

Wealthy Couples Often Opt for Collaborative Divorce

The collaborative divorce process has gained in popularity in recent years because it can save couples both time and money. High-net-worth spouses tend to favor collaborative divorce because it allows them to resolve sensitive personal matters behind closed doors. Collaborative divorce is an alternative dispute resolution method similar to mediation, but no independent third party is present and both spouses are represented by their own attorneys. If the discussions are unproductive and an understanding cannot be reached at the negotiating table, the spouses must start again from square one and hire new lawyers. This ensures that the spouses and their attorneys work hard to find common ground and reach an agreement that they can all live with.

The History of Collaborative Divorce

The collaborative approach to conflict resolution during divorce was created in 1990 by a Minnesota family law attorney named Stuart Webb. Mr. Webb decided to pioneer a new way of dealing with delicate matters like property division, spousal support and child custody after noticing how the adversarial nature of traditional litigation often damaged his clients emotionally and financially. When a new client contacted Mr. Webb about getting a divorce, he told them that he would be happy to negotiate on their behalf during collaborative sessions but would not represent them in court. This approach proved to be extremely successful, and the collaborative divorce movement was born.

Since Mr. Webb had his epiphany in 1990, the collaborative divorce approach has taken root across the United States and in Canada, Australia and Europe. The process was formalized in 2009 when the Uniform Collaborative Law Act was adopted by the Uniform Law Commission. The ULC, which was founded in 1892, provides lawmakers with drafted legislation that can add clarity and bring stability to important areas of state law. Lawmakers in Pennsylvania adopted the Uniform Collaborative Law Act in 2018.

The Collaborative Divorce Process

Before collaborative divorce sessions begin, both spouses sign a binding agreement that states they will participate in the process and hire new lawyers if an agreement cannot be reached. In traditional negotiations, each spouse lays out their position when talks begin and then does all they can to make as few concessions as possible. In collaborative discussions, spouses voice their reasons for wanting to avoid conflict and then work to find common ground. The attorneys present work together instead of against each other to help their clients get through difficult issues, and experts like therapists, child psychologists, forensic accountants and asset appraisers may be called upon to answer questions and provide advice.

Why Wealthy Couples Often Choose Collaborative Divorce

The adversarial nature of the legal system can drag divorces out and make them messy and expensive, and this is especially true when the spouses involved are wealthy and have much to lose. The collaborative process makes a great deal of sense for high-net-worth spouses because it offers them:

• Privacy: Courtrooms are public venues, which means anything said or disclosed in them can be discussed freely or published in print or online. Collaborative discussions take place behind closed doors, which means they are private.
• Reputational protection: The allegations made in a divorce case can be salacious and damaging to the reputations of individuals in the public eye. Uncomfortable revelations about financial matters could be fuel for gossip or give business competitors information they could use to their advantage.
• Cost savings: Wealthy individuals tend to hire the best divorce lawyers, which means a protracted trial could be quite expensive. Wrapping things up quickly and discreetly could save the spouses a lot of money.
• Time savings: High-net-worth individuals often have busy schedules and little free time. If they are able to negotiate divorce settlements quickly, they can use the time they save to build their businesses or brands.
• Control: Taking a divorce case to court ensures that a final decision will be made, but there is no guarantee that either party will be happy with the judge’s decision. Reaching an agreement in a collaborative fashion gives spouses control over their fates. Avoiding court also makes divorce far less traumatic for any children involved.

Is the Collaborative Approach Right for You?

If you are contemplating divorce and would prefer to avoid conflict and confrontation, the collaborative approach could be a good option for you. If you decide to explore this alternative, you should look for a divorce lawyer who understands the process and has a track record of success. Joanne Kleiner is a member of the International Academy of Collaborative Professionals, and she has been practicing family law for 35 years. You can schedule a confidential consultation with Ms. Kleiner at our Jenkintown office by calling (215) 886-1266 or filling out our online form.