Well, the critics have been speculating about their marrriage for some time and now the speculation seems to have been on the ball; Madonna and Guy Ritchie have announced their intention to divorce, so now the fun really begins as top divorce lawyers for each will manoevre and argue over the couples combined fortune - estimated at £300 million!

The case will be an interesting twist on the norm of a woman seeking a large sum of money from her wealthy husband with Guy instead probably seeking a large slice of the couples fortune. After all - I am sure the argument will go - he had to put his own career on the back-burner to support Madge’s demanding career and give emotional support to their family.

Guy is one of a growing number of men in the position of benefiting from divorce because of being married to a very successful woman. The law doesn’t discriminate bewteen men and women any longer, just the wealthy and the not!

Incredibly it seems tht Madonna didn’t get Guy to enter into a prenup and so all is open to argument. Sorry Madge, big mistake! In legal circles it is being speculated that if properly handled the divorce should result in Guy receiving the largest payout in British court history, dwarfing the miserable £24 million paid to my old friend and yours, Heather Mills McCartney.

There really is no reason why this should have happened. If Madonna had taken the advice I am sure she was given then a prenup would have been in place and the divorce spoils would be minimised. Madonna has been implicated by Axel Rodriguez’s wife as being responsible for their marriage break-down, (something Madonna has denied); but at least the New York Yankee star had a prenup! Maybe instead of him listening to her, she should have been listening to him!

If you think that Madonna’s wealth is such she won’t miss the occasional £50 or £100 million, just look at what they are reported to own, just real property, not cars or anything else, just real property, all of which is now up for argument;

Madonna is believed to own the couple’s London home, a £7m family townhouse in Marylebone, and a 10-bedroom, £6m property next door as well as two Manhattan apartments overlooking New York’s Central Park worth £2m each.

Guy is thought to own their estate, Ashcombe House, in Wiltshire which has large grounds and is reportedly worth £10m.

It is thought that the couple own the following properties jointly;
Two mews cottages in London worth £2m each (used to house their London staff).
The £2.5m Punchbowl Pub on Farm St in Mayfair, apparently Madonna and Ritchie own it with their friends.
A £3.6m building in London’s West End -the headquarters of the Kabbalah sect;
A five-storey, £1.6m house in Regents Park.
A two-storey mansion in Beverly Hills, California worth £8m.

Divorce planning doesn’t just happen. You have to make it happen, especially if you are “A material girl!”

Doctor Ditchem
International Divorce Strategist
“Protecting wealth against Divorce!”

New York Yankees Baseball star Alex Rodriguez, or ‘A Rod’ to his friends, had a prenuptial agreement with his wife, but when the parties went for divorce his wife challenged the terms of the prenuptial agreement. Recently theyapparently reached a settlement. Premarital agreements ( or ‘prenups’) are entered into prior to marriage and may deal with the parties’ present and future property rights. Even in the Uk where the law does not specifically recognise prenups there is still an advantage in having them in my view.

Maybe you are not aware of the “nuances” of prenup law, but any reviewing court must find the premarital agreement is in line with public policy or it’s terms will not be enforced by the court. For this reason it is important that any prenup include a ’severability clause’ or as it is sometimes called a ‘red ink’ clause, meaning that if a court finds one or more terms of the Agreement are NOT in line with public policy they can draw a red line around the offending clause or clauses and the rest will still stand as enforceable because they can be ’severed’ by the court from the offending terms and still stand in their own right.

Usually the party against whom you wish to enforce the terms of the Agreement must have had at least seven days between the date they were first presented with the Agreement and advised to seek independent legal advice and the time of their signature, otherwise any court is likely to find the Agreement is totally unenforceable.

I usually work with clients in the background advising about the terms of the Agreement, and - more inmportantly frankly - how to ’sell’ the idea and it’s terms to the other party; as I say, it is these ’soft issues’ that are often the hardest! These are issues a lawyer cannot help with!

Even in the case of this NY Yankee star where the prenup was challenged it’s existence set a foundation for the argument. If there had been no prenup then the arguments would undoubtedly have been more wide ranging and lsted a whole lot longer!

A good prenup is classic pre-divorce planning; it sets the ground rules before the players ever go onto play!

Doctor Ditchem
International Divorce Planner and Strategist
“Protecting wealth against Divorce!”
www.doctorditchem.com

I don’t want to rake over old ground as my past blog coverage of the McCartney divorce has been somewhat controversial, but I couldn’t resist commenting on a press report carried by the Press Association that Heather Mills says she has at last found peace following her divorce from Sir Paul McCartney.

According to the report she is spending a lot of time in the States and indeed says she has donated £550,000 of “vegan” food to one of the poorest neighbourhoods in New York; I just hope they didn’t want meat!

I wish Heather Mills well; really I do! she played the “game” the way the legal system has designed it to be played (taking the wealthy spouse for all she could!) and you can’t blame her for that even if it was a bit distasteful.

I suppose my parting comment would be, if it takes £24.3 million before she could find peace, what hope for the rest of us?

I risk annoying my readers again, but if ever there were - in my opinion - a case that illustrated the need for divorce planning and strategies, I can’t think of it! It could have been a pre-nup, it could have been the use of a family Trust or an off-shore structure but £24.3 million!!! What a wasted opportunity Paul, what a wasted opportunity!

Doctor Ditchem
International Divorce Strategist
“Protecting wealth against divorce!”

Let us consider the ‘financial examination’ of business assets that occurs when divorce happens.

Most non-business peoples’ circumstances and assets are easily identified and valued. Usually easily dealt with in the divorce process. Even in these simple circumstances it may be possible to do various things to minimise the risks to a particular party to the divorce but these cases are by their nature (normally) simple, though that is not to take away from the pain that can be involved.

In my experience the complications arise where one of the Parties is a business person. Then all sorts of other issues arise. These are too numerous to mention here but the normal approach is for one Party - normally the non-business person - to engage a ‘financial expert’, usually an accountant, to examine the finances of the Parties and of the business and “guide” the court by their ‘expert’ evidence and analysis. In some places, such as Canada there are even particular recognised specialists who do this sort of work called “Financial Divorce Specialists” or “Certified Divorce Financial Analysts”. Indeed sometimes the Parties can agree to utilising the services of one as an “independent expert” on behalf of them both to “smooth the process” for the lawyers to be able to reach an out of court settlement that is “fair” to both parties.

Here I ‘nail my colours’ to the mast! This is a very dangerous process for any business person! You MUST NOT abrogate your responsibility to protect yourself and your business during this process or you will have no one to blame but yourself when a grey suited accountant tells lawyers and court their opinion of what is fair and ‘do-able’ as a settlement for you and your business, and believe me, it will NOT be the same as you think!

Over my years I have come across many so-called “experts”, some well meaning and some downright unscrupulous. No matter how well meaning they are, they NEVER have the same perspective as the business owner! Their view is ALWAYS based on the figures on paper. In the more unscrupulous cases these figures are ‘massaged’ to over-estimate the value of a business and it’s profilts, to under-estimate liabilities and risks, to over-estimate the living expenses of one of the Parties - their instructing client of course - and even to forget about such things as bad debt or Tax liabilities! True!

Even in the well meaning cases, where I have no doubt the “expert” was trying to be fair to both Parties, there was an inherent weakness; - they were trying to be fair to both Parties - NOT trying to be accurate in their calculation of the true financial position and risk to a business!

No, you must always engage your own expert to fight your corner! Divorce is branded as “non-fault” but our whole court system, of which the family courts are a part, is adversarial and you need your own ‘gladatorial’ team.

Of course the point I would make again is that “The one who best plans for divorce will have the best divorce!”
I have seen cases where a spouse copied correspondence and financial statements for up to three years before a divorce was initiated! If you are reading this blog or looking at my site, what makes you think your partner isn’t having the same thought as you about the future of your relationship?

If you plan your divorce and strategise how to safe guard your assets and wealth BEFORE divorce is mentioned, believe me, you will have a better divorce than if you do not! You owe it to your business, your staff, your creditors, your suppliers and above all else you owe it to yourself to protect your assets, wealth and business by Planning and Strategising Before Divorce is mentioned!

Doctor Ditchem
International Divorce Planner and Strategist
“Protecting wealth against Divorce!”

According to reports a Cambodian couple decided to avoid the country’s notoriously corrupt and expensive court system in their divorce by dividing their house, literally, in two; thats right, down the middle!

A local newspaper carried pictures of a precariously pitched half of the “stilted” former home of the couple, Meuon Rima and his former wife Nhang. Mr. Rima has apparently now driven his half of the house elsewhere. The paper pointed out that Mr. Rima did not apparently feel the need to do the same with the couples two children! (Both of these he left with his former wife - much to their relief I am sure!) Here is link for those of you who do not beleive me; http://www.earthtimes.org/articles/show/235071,cambodian-husband-takes-half-the-house-in-divorce–literally.html

Oh how much simpler life would be for us in the West if we had homes that you could do that with!

I know, I know. It is a trivial story and I chose it for its amusement, but then again it also illustrates graphically the pain and trauma the world over caused by divorce and it’s financial aftermath. Sometimes - if you are like me - you may wish for a simpler life; one lived at a slower pace; one with fewer stresses. The truth is that wherever people are in the world and no matter what their life-style, having your hard earner assets wrenched from your fingers is traumatic the moreso when it follows on theloss of the closest and most intimate of relationships. i think the technical term is, “It sucks!”

Well, I may niot be able to stop all the pain but i do aim to help stop the monetary lipo-suction to a great degree at any rate.

Of course perhaps you are so wealthy that even a few million doesn’t make any difference to you, though if the truth be known the wealthy clients I act for treat the protection of their wealth as if it were their blood and it was being sucked by Dracula!

Anyway, the lie is laid bare; even if you lived in some - literal - backwater where your house stood on stilts, when the chips are down you still wouldn’t want to lose it!

Doctor Ditchem
International Divorce Planner and Strategist
“Protecting wealth against Divorce!”
www.doctorditchem.com

It is no secret that sometimes in my role as pre-divorce planner and strategist I sometimes advise clients to incorporate business interests off-shore as a means to protect wealth and assets against divorce.

So far as my US clients are concerned I am often asked what is the point of this and whether there is any tax advantage in doing so.

Without disparaging the many so-called experts who offer these services to US clients in the name of tax savings, maybe it would help if I clarified some points - so far as US citizens are concerned;

US citizens are taxed on their worldwide income including income from interest and dividends and whether these arise ‘onshore’ or ‘offshore’. (It is a little known fact that US citizens share this tax treatment with very few other countries, one being Iran!) The US allows money and assets to be moved offshore but full disclosure is required and the US has specialsit teams in the IRS dedicated to ensuring compliance with legislation and preventing money laundering and other criminal activity, including tax evasion.

Sometimes in light of these facts a US client will ask whether there is any advantage in setting up such a structure and the answer is yes, because tax is only one area of consideration. Particularly in the US with it’s highly litigious culture there are many other would be litigators as well as the IRS, including disaffected spouses. Offshore trusts and accounts can be an excellent way for US citizens to securely protect assets. They offer a lot of financial privacy and protection from such people as an ex-spouse or ex-client both now and in the future. As long as a US client complies with all legal requirements of full disclosure etc then there is nothing illegal in setting up or holding such structures which can be a very effective form of protection from litigious attack whether in Family disputes or otherwise.

Often these Trusts are structured so that they are irrevocable for a finite period of time, during which the creator of the Trust, called the Grantor, will not be the direct beneficiary of the Trust. Providing at the end of the term of the Trust there is no threat to the assets, then they can be returned to the Grantor if that is desired or they can be carried on in the Trust for a further term.

Apart from actually protecting the assets in the Trust from attack, the fact they are so protected often itself is a dis-incentive to court proceedings being issued in the first place.

So, US citizens still have a lot to be gained by the use of Off-shore structures, and perhaps even more to loose if they don’t use them.

Of course in other countries which do NOT tax on a citizens world-wide income there may also be tax advantages in the use of Off-shore structures, but that is a seperate matter.

Doctor Ditchem
International Divorce Planner and Strategist
“Protecting wealth against Divorce!”
www.doctorditchem.com

Poor old Ronnie Wood! Or he will be a lot poorer if he has to go through a divorce!

The Stones guitarist and his wife ‘Jo’ have seperated and Ronnie has apparently been “practicing guitar” with a 20 year old russian girl. The press was full of pictures of him and the young woman last week as they dined at a top London restaurant. According to friends it is a serious relationship and the girl, Ekaterina Ivanova (surely Austin Powers must be close by!) is supporting him through rehab. I know the restaurant and believe me, if Ronnie was paying for the meal then it must be a serious relationship!

I have no problem with whatever Ronnie chooses to do in the privacy of his own seperation! My only comment is that his wife Jo, is his executive assistant, his personal management assistant, a joint director of his music company “Rockyarch” and is company secretary for his painting business “Scream Art”. Not surprisingly it is being speculated that Jo could be awarded 20 per cent of his earnings – including future payments - on top of a half share of his capital.

Maybe the “Rock’n'Roll” life-style has befuddled his brain, but I would have thought that before doing his own version of “men behaving badly” Ronnie should have undertaken some serious divorce planning including getting his wife out of his business affairs before he starts his own personal affairs!

I have often said that confidentiality is the foundation of all asset protection planning in divorce and seperation and having ignored that truth Ronnie can expect no mercy. I don’t expect him to call me, but if he does, well Ronnie, there is just so much that you can do!

Doctor Ditchem - International Divorce Planner and Strategist
“Protecting wealth against Divorce!”
www.doctorditchem.com

I was reading some business articles recently and - as a retired and experienced commercial lawyer - I realised that most “partnerships” or joint ventures plan their “divorce” before they even get married. How many serious business people go into business relationships without a “partnership agreement” which among other things will outline the process for “parting company” if the need ever arises. Having done such an agreement the Parties get on with their new venture, putting the agreement into their desk drawer where, hopefully, it is never looked at again. But if the need does arise then all the pertinent details, ( who gets what, how values are calculated and who can and cannot do what) are set out in adavance ready for the day.

Is it so different in realtionships? Of course not everyone wants a “Pre-Nup” (though there is an argument for them I believe) but if there is one lesson to learned from business and which carries over to ANY area of life, including the personal, it is that without planning you quickly get no-where!

Divorce is just the same, “The one who plans best for divorce has the best divorce!” Divorce planning is a necessity. Make sure you don’t overlook it.

Whether you are a man or a woman as soon as you feel that there is even the possibility of a divorce in the future, consult a professional such as me  and make a plan to protect your assets and wealth from divorce. It will save tears and heartache later on.

Doctor Ditchem - ”Protecting wealth against divorce!”  www.doctorditchem.com

All my clients know how much I value privacy; it is a rapidly disappearing asset in these “Big Brother” days.The home should be a place where one does not have to worry about privacy, after all the Home is where you, your values and your privacy  are supposed to be safe. Sorry to say that is not necessarily the case.

I once had a case where a clients spouse had been photociopying my clients financial mail for THREE YEARS before the idea of divorce was mooted between them.

I always tell my clients that the first key to asset protection is confidentiality, this cannot be over stated. As an example of the danger I have just done a search of varous Divorce lawyers’ web postings and I now copy a portion of a typical one; the lawyer states;

“I advise my client to not say a word about divorce until he or she can photocopy as much evidence of the marriage as possible.  This includes bank statements, credit card statements, tax returns, mortgages, deeds, loan applications, loan documents, promissory notes, car titles,  income statements, pay stubs, health insurance policies, life insurance policies, medical bills, brokerage accounts, and any other documents to prove lifestyle of the marriage.  Only after the client has set up in this manner would I advise a client to discuss divorce with a spouse. ”

This is “divorce planning”. If you are reading my site or this blog the chances are you are doing so because somewhere inside you there is a growing suspicion that at some stage it is possible you may face a divorce. If you think that now…what makes you so sure your spouse hasn’t had the same thought and may be divorce planning themselves? it’s worth thinking about; Don’t assume, oh that’ll never happen to me. It happens every day.

Doctor Ditchem - Protecting wealth against divorce! www.doctorditchem.com