High-net-worth divorce costs can exceed $1 million a year

New York divorce attorney Jacqueline Newman, who represents clients with over $20 million in assets, reports that maintaining a high-end lifestyle post-divorce can require over $1 million annually, a figure many couples don’t realize they spend until their separation.

"Her response to me was that she doesn’t want to go on any other planes other than the private jet because they know how to set her seat," Newman, a partner at Berkman Bottger Newman & Schein, said, recalling a client who rejected using a fractional jet service like NetJets.

These lifestyle costs can include $50,000 a year for beauty treatments and $12,000 for pet care. The disputes extend beyond cash, with one of Newman's cases involving a surgeon who spent hundreds of thousands in legal fees to secure a $1,000 grandfather clock he intended to destroy.

The financial unwinding of wealthy marriages highlights the importance of asset tracing and prenuptial agreements. In community property states like California, assets acquired during the marriage are generally split 50/50, making the distinction between marital and separate property, such as a down payment on a house from pre-marriage funds, a critical and often expensive legal battle.

The Prenup Debate

Money is increasingly coming up even before couples tie the knot in discussions about prenuptial agreements. Newman isn’t a fan of infidelity clauses that require a spouse to pay up if they have an affair, since cheating can be tough to prove in court. Still, she described one client who wanted an infidelity clause in his prenup—to prevent himself from cheating. Financial advisors often argue a prenup is essential when significant assets are involved, a view echoed by finance personality Dave Ramsey, who sees it as a necessary tool for protecting pre-existing wealth.

The case of Rodger Berman and fashion mogul Rachel Zoe, who separated in 2024 after 26 years of marriage, illustrates the intertwined nature of business and personal assets. Berman, who served as president of Rachel Zoe Inc., has an estimated net worth of $10 million, a fortune built in tandem with his former spouse's brand. Their divorce involves the complex task of separating a business partnership from a marital one, a common issue in high-net-worth splits.

Legal and Financial Realities

Even in community property states like California, assets acquired before marriage are typically considered separate property if they can be traced. "If you can trace your down payment back to your separate property, you may be able to get a reimbursement for that amount before the remaining equity is split between you," personal finance columnist Liz Weston explained. This process of tracing and proving the origin of funds can become a major point of contention and legal expense.

For the ultra-wealthy, divorce is less about an emotional split and more about a financial one, where every asset, from private jet access to family heirlooms, becomes a point of negotiation. The proceedings offer a rare look into the complex financial lives of the top 1%, where the cost of maintaining a lifestyle can be as significant as the assets themselves.

This article is for informational purposes only and does not constitute investment advice.