Protecting Wealth During Divorce – Strategic Guide

Paradigm Family Law - Guides and Resources

This guide covers how to protect wealth during divorce when assets are significant, complex or international. It explains asset categories, common risks like hidden assets and dissipation, when expert valuations are needed, and what urgent protective steps may be available.

Table of Contents

Divorces involving significant or complex assets — especially those spanning multiple
jurisdictions — require careful strategy, full disclosure, and expert valuation.
This guide outlines the key risks and steps to protect your wealth from the outset.

UNDERSTANDING ASSET CATEGORIES

Courts classify assets as:

1. Matrimonial: Built up during the marriage
2. Non-matrimonial: Pre-acquired or inherited
3. Mixed / Partially matrimonial: Portions of both
4. Business assets
5. Trust assets
6. International structures

Key Question:

“Which of my assets are vulnerable to sharing, and which might be ringfenced?”

RISKS IN HIGH-VALUE OR COMPLEX CASES

Be aware of:

1. Hidden assets
2. Sudden reduction in income
3. Manipulated business performance
4. Dissipation of assets
5. Family loans disguised as gifts
6. Offshore structures shielding wealth

EXPERT VALUATIONS

Independent valuation may be needed for:

1. Businesses
2. Trust interests
3. Properties (UK & overseas)
4. Pensions
5. Investments
6. Art or luxury assets

Relying only on your spouse’s valuations is risky.

BUSINESS & TRUST STRUCTURES

Business owners – common issues include:

1. Undervalued companies
2. Excessive expenses
3. Director’s loans
4. Deferred income
5. Manipulated profits

Trusts:

Courts look behind trusts to assess:

1. Intention
2. Control
3. Access to distributions

FREEZING ORDERS & ASSET PRESERVATION

You may need urgent protection if:

1. Assets are being moved
2. Accounts are emptied
3. Property is being sold
4. Funds are transferred overseas

Tools include:

1. Freezing orders
2. Preservation orders
3. Interim orders

INTERNATIONAL & OFFSHORE CONSIDERATIONS

Cross-border cases require:

1. Multi-jurisdiction awareness
2. Understanding tax exposure
3. Enforcement planning
4. Timing considerations
5. Risk mitigation strategies

KEY QUESTIONS

1. Which assets require independent valuation?
2. Is there a risk of dissipation?
3. Are there tax implications?
4. Are there overseas assets requiring local lawyers?
5. Do I need immediate protective action?

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