Hoxton Wealth reports 32% rise in HNW clients going through divorce

Hoxton Wealth has reported a 32% rise in the number of high-net-worth clients approaching them during or immediately following divorce proceedings in the past year.

The wealth manager reported that in many cases, these individuals hold assets across multiple jurisdictions, adding significant complexity around tax, pensions, trusts and estate planning.

With high net worth divorces, there is often more at stake, and Hoxton Wealth stated that it can be difficult to understand the real value of assets when it comes to financial settlement for a fair division of assets.

CEO of Hoxton Wealth, Chris Ball, stated that legally, divorcees would have to rely on the other party’s disclosures for assets, although these disclosures could be challenged in the process.

“It is very important to collect as much information as possible in preparation for settlement negotiation,” Ball said.

“High net worth individuals can often have assets offshore, in different jurisdictions which can be difficult to value and trace, as well as knowing the correct valuation of these assets. For example, if a client has shares and suddenly, those shares drop 20% due to market volatility, this will affect the financial settlement bottom line.

“All these factors need to be considered, and ideally professional advice should be sought at an early stage.”

Ball added that working with a financial adviser or an accountant to look through statements usually allows these professionals to trace any other assets that haven’t been declared correctly.

He continued: “When it comes to division of assets, tax implications should be considered carefully, and financial advisers also work with tax advisors and accountant as and when necessary

“It is not uncommon for situations where one party keeps control of the finances and the other party, looks after the children, maybe leaves the financial matters to the other party. We see, even during financial settlement, they are still sometimes manipulated and coerced into making decisions.”

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