Divorce can easily become contentious. In some cases, spouses with significant personal holdings end up embroiled in divorce litigation for months while trying to settle disputes about property division and financial support.
While disagreements and intense emotions are common, spouses do not need to battle against one another in court. People preparing for high-asset divorces may want to consider working collaboratively with one another and possibly attending mediation. Doing so can offer a host of practical benefits.
What are collaborative law and mediation?
Collaborative law, also known as collaborative divorce, requires a commitment to work with one another instead of litigating. Spouses sign an agreement promising to settle all of their disagreements outside of court.
Mediation is a form of alternative dispute resolution where people sit down with a neutral third party to work through the agreements and find a mutually-agreeable solution. Both collaborative divorce and mediation occur outside of the court system, which can make them particularly beneficial for couples facing a high-asset divorce.
The benefits of collaborative divorce
Spouses who agree to settle their disagreements outside of court, possibly by attending mediation with one another, can derive numerous benefits. First and foremost, they protect their privacy. In a litigated divorce, disclosures about financial matters and accusations of misconduct typically become public record. Anyone who attends court hearings or requests transcripts from the courts may learn very private information about the spouses.
Collaborative divorce occurs outside of the legal system, allowing spouses to discuss things confidentially. Mediation sessions, in particular, have statutory protection that makes the records of the session confidential. Only the final agreement becomes part of the court proceedings and therefore public record.
Collaborative law and mediation are also beneficial because they give spouses more control over the process. They do not need to let a judge decide what should happen with their property or how to share custody of their children. Provided that they both agree to compromise in some areas, each spouse can potentially secure the terms that matter most to them.
While high-asset couples may have resources that they can use to pay for divorce, the decision to collaborate with one another instead of litigating can help them control the overall expense of the divorce process. Even though they may need to pay for outside services, reducing the amount of time spent in court can limit the total costs of the divorce.
Particularly when spouses worry about their privacy or must maintain an amicable relationship due to shared children or joint business ventures, collaborative divorce and mediation can be an excellent alternative to traditional divorce litigation. Discussing options with a licensed divorce attorney can help spouses to choose the best path forward as they prepare for a high-asset divorce.