Minimizing Reputational Damage During High-Net-Worth Divorces 

A Florida high-net-worth divorce can become incredibly complicated. The couple’s many assets must be identified and valued. These may include property, businesses, homes, cars, art, and antiques.

This assumes all the assets are disclosed, which is not necessarily the case every time.

A couple can work together to negotiate their dissolution, or the proceeding can become contentious, requiring them to go to trial.

Amidst the divorce proceedings, one spouse may opt to tarnish the reputation of their soon-to-be ex-partner. That can be done through online platforms such as social media or in a less-than-flattering media interview. The media’s fascination with high-net-worth divorces often uncovers unsavory details, typically to the detriment of one party.

Given the potential for reputational harm, factoring this into your Florida divorce mediation is crucial. A seasoned family law attorney is your most reliable guide to navigate these turbulent waters, ensuring a fair distribution of assets under Florida law and shielding you from the reputational damage that one spouse may inflict on the other.

Equitable Distribution

Unlike some states, such as California and Texas, which are community property states, Florida law requires that assets be distributed equitably. That does not necessarily mean equal division, but it does allow the couple to determine what is essential to each of them and negotiate accordingly.

In a high-net-worth divorce, we often find a prenuptial agreement in place. Both spouses sign the contract before their marriage and after consulting with their individual lawyers. Its contents are private.

The purpose is to protect substantial wealth in a legally binding insurance policy of sorts. A spouse who finds the proposed agreement insulting can simply refuse to marry.

A prenup signed a day before marriage may ultimately be unenforceable because it can be presumed to have been entered into under duress. A signed prenup may also be invalidated if one partner has not fully disclosed their assets. However, you should not assume that a prenup can be challenged. On the face of it, a prenup is generally recognized by the Florida court as a valid agreement.

Before the marriage, the couple should discuss their wealth. They must be honest about their assets, disclose all and any discrepancies in their wealth, and how that will be divided in case of a divorce. If they agree and commit their agreement to writing, the division of assets will be easier in the event of a divorce.

However, suppose the divorce becomes contentious, and one wants to challenge any previous agreement. In that case, one spouse can try to leverage more money under the threat of disclosure or bad press.

Social Media

A great deal of harm can result when a high-net-worth individual wants to use the media to help navigate their divorce. It can spiral downward into a nasty electronic fight. Children will be collateral damage, as will the high-net-worth individual’s reputation. Their business may be damaged, as well as their ability to conduct future business.

A harmful post can hurt both spouses. Someone who wants more in an equitable distribution may post they are disadvantaged in their settlement. The other side will look for online evidence that they live a good life and are not impoverished. Both sides have reputational harm as a result of a negative post.

Additionally, a social media post can be used to hurt one spouse during settlement negotiations.

A prenuptial agreement should address the potential use of social media as a negotiating tool to pressure a more attractive settlement and discourage that option.

It’s advisable to:

• Regularly audit your posts for any negative information
• Make sure your settings are private so no one can spy on your communication.
• Change passwords regularly.
• Avoid removing any information while you are in litigation or expecting to enter into legal action. To do so could be considered destroying evidence.
• Think before you post anything that someone can use against you.
• Never share details of a prenup, a settlement, or ongoing negotiations with the media.

Your Florida Family Lawyer

Serious reputational damage and privacy issues can result from ignoring social media during a high-net-worth divorce.

Attorney Crystal Collins Spencer understands the pressures of a high-net-worth divorce and can help manage your reputation during this challenging time. Call her Pensacola office at (850) 795-4910 to arrange an initial consultation about your upcoming divorce and share your concerns about reputational harm with her. Ms. Spencer has the experience and compassion to listen and act on your behalf.