Protecting Your Privacy and Reputation During a Divorce
Much thought can go into protecting assets in a high-net-worth divorce. While every divorce can present challenges, one that involves individuals with considerable assets can be particularly complicated.
But for those who are wealthy, well-known, or have a high standing in society, the division of assets is not the only consideration. The average divorcing couple may not be overly concerned about privacy issues as they work to restart their lives. For people in the public spotlight or those with considerable worth, ensuring their privacy is protected and respected can be a significant consideration.
The internet is an unyielding presence that fuels omnipresent media coverage. At the same time, social media has provided a platform for limitless commentary, allowing people to share opinions, however ill-informed, that could have a potential impact on the standing and reputation of those in the community.
At Mills Family Law, our team of experienced litigators can deliver representation that protects your best interests, whether you are dealing with an amicable split or are engaged in high-conflict, high-net-worth dispute resolution.
Our team offers clients a personalized and compassionate approach with smart strategies to provide creative solutions to fit your particular needs, whether it is the end of a marriage or a marriage-like relationship.
Understanding High-Net-Worth Divorces
A high-net-worth divorce deals with situations where a couple has substantial holdings in what may be a complicated portfolio of assets. Generally, at least one person in the relationship would have more than a million dollars in such financial holdings as business, stocks and financial investments, real estate, pension and retirement accounts, trust or savings.
These types of divorces can present challenges, especially if one person is in a higher tax bracket than their spouse. Sorting out finances to ensure an equitable distribution can be difficult, and there can also be tax implications to consider.
Full disclosure is imperative to identify and value a couple’s assets. It will typically require not only an experienced lawyer with expertise in British Columbia family law but also the assistance of such experts as business valuators, tax advisors, appraisers, and professional accountants.
Of course, when there is so much at stake financially, there is the potential for prolonged litigation and the chance that the divorce will end up being contested in family court, which is open to the public.
Property, Debt, and Support in B.C. Divorces
The Family Law Act governs the division of property when couples divorce in this province. Any property acquired during a relationship is usually split evenly between both spouses. What they brought into the relationship is typically excluded, although any increase in value throughout the relationship may need to be divided. Inheritances and gifts received by one spouse during the marriage are also excluded with some exceptions.
The rules dealing with debt and property apply to couples who are married or unmarried partners who have lived together in a marriage-like relationship for at least two years.
In a high-net-worth relationship, it is not unusual for a prenuptial agreement to be in place that dictates how assets are to be divided in a breakup. These agreements, while not ironclad, are usually enforceable as long as they are deemed to be “fair and reasonable” and were entered into voluntarily and with full financial disclosure. It is up to a family court judge to determine if the prenup is valid.
Spousal and child support are important considerations in any divorce. In high-net-worth divorces, the lifestyle of both parties can play a role in support decisions.
All couples, despite their financial circumstances, are guided by the Federal Child Support Guidelines and the Spousal Support Advisory Guidelines. However, when the financial assets of one or both partners are substantial, courts in this province consider the standard of living each enjoyed during the marriage and have the discretion to deviate from the guidelines.
Privacy Concerns for High-Profile Divorces
In August 2023, Prime Minister Justin Trudeau took to Instagram to announce that he and Sophie Grégoire, his wife of 18 years, were separating.
"Hi everyone, Sophie and I would like to share the fact that after many meaningful and difficult conversations, we have made the decision to separate. As always, we remain a close family with deep love and respect for each other and for everything we have built and will continue to build. For the well-being of our children, we ask that you respect our and their privacy," the message read.
That didn’t stop the curious. CBC News reported that Trudeau’s high profile “likely contributed to the news garnering global interest,” including coverage from newspapers such as the New York Times, broadcasters including CNN, and even TMZ.
“Trudeau has always attracted an unusual amount of personal international attention for a Canadian prime minister," Jonathan Malloy, a professor of political science at Carleton University, told CBC. "It is unsurprising that international media attention has followed this unfortunate and private development in a Trudeau family relationship."
When someone is in the public eye or has a great deal of wealth, people’s requests for privacy can be pushed in the quest for details of a divorce. It is not just celebrities or the ultra-rich who should be cautious, and it is not always just the media who will attempt to seek out personal information. Safeguarding your privacy can be paramount to protecting your reputation.
How to Protect Your Privacy During Divorce Proceedings
Courts are open to the public in Canada, and anything filed during a proceeding can be accessed by the public.
There are legal avenues your lawyer may be able to explore to safeguard your privacy, especially if there are concerns about the safety of you or your children. A judge can consider sealing a divorce record or using initials instead of your full name in court documents. However, there is no guarantee court will impose these measures in all circumstances.
You should be careful about sharing any details about your divorce with anyone besides your lawyer to avoid the spread of information that may impact your reputation. It is especially important not to share information on social media. Once something is on the internet, it can spread like wildfire and be shared by countless people. It is in your best interest to stay off social media until your divorce is settled.
Since litigation creates a public record, the best way to protect your privacy is to settle your divorce outside of court. It should be noted that provincial and federal law mandate that spouses have a duty to try to resolve their dispute through a family dispute resolution process.
Alternatives to Litigation: Collaborative Divorce and Dispute Resolution
There are several options offered by Mills Family Law, including a Collaborative Divorce. In this scenario, each spouse works with their own lawyer to settle their issues. Couples agree from the start not to go to court, communicate respectfully and honestly while sharing all relevant information in a timely manner, and make an effort to understand each other's needs and concerns.
We offer Alternative Dispute Resolution that focuses on consensus, making the end of a marriage less adversarial.
Trusted Legal Advice for Privacy and Divorce in B.C.
We all value our privacy. If you have concerns about how your divorce can impact that privacy, it is important to choose a law firm that knows what it takes to protect your best interests.
The end of a relationship can bring uncertainty, but the team at Mills Family Law will work diligently to give you peace of mind as you move forward with your life.
