The benefits of mediation in a high-asset divorce
Divorce is never easy. With the complexity of emotions involved, the process can be physically and mentally draining. When divorce involves high assets (defined as one spouse having a net worth of $1 million or more) it can also become contentious.
In these situations, mediation is an attractive option. The use of a mediator can help couples navigate the divorce process more smoothly and amicably.
Reduce conflict
Mediation encourages open and respectful communication between spouses. By avoiding hostility and conflict, the divorce proceedings are smoother. This approach to the process is physically and emotionally healthier for all participants.
Save money
The typical divorce costs an average of $7,000, but high-asset divorces often cost significantly more. Mediation tends to be more cost-effective than traditional divorce litigation. It results in lower legal fees and enables both parties to divide their property equitably.
Maintain confidentiality
Mediation is a private process. Unlike courtroom proceedings, which are often public, mediation sessions are confidential. This can help protect sensitive financial information and maintain privacy.
Resolve faster
The average divorce resolves in one year, while simple divorces can be accomplished in as little as three months. High-asset divorces, on the other hand, can drag through litigation for years. Mediation typically creates quicker resolutions. This allows both parties to move forward with their lives sooner.
Control outcomes
Mediation puts the power in the hands of the divorcing couple. They have more control over the decisions and outcomes, as opposed to a judge making decisions for them in court.
Customize solutions
Mediators can tailor agreements to the specific needs and circumstances of the couple. This flexibility allows for more creative and customized solutions, which can be especially important in high-asset divorces with complex financial arrangements.
Preserve relationships
If the divorcing couple has children, mediation can help maintain a more amicable co-parenting relationship. By working together, parents can create a parenting plan that reduces the emotional toll on the children.
Reduce stress
High-asset divorces can be emotionally draining. Mediation offers a less adversarial environment, which can help reduce the emotional stress often associated with divorce litigation.
Encourage compliance
Because both parties are actively involved in the decision-making, agreements reached in mediation tend to have higher compliance rates. This reduces the likelihood of further legal battles down the road, which is good for the entire family.
Mediation offers a range of benefits for couples going through a high-asset divorce. It promotes open communication, reduces conflict and provides cost-effective, efficient and confidential solutions.
