Alberta High Net-Worth Family Lawyers

When couples separate and divorce, there are usually three main issues they need to resolve: How will we co-parent the children? How will we financially support each other? And how will we divide family property? These issues can often be difficult and complicated to resolve, especially when the couple have a high net worth or high incomes. This is when hiring a high net worth family lawyer becomes important. Why? Because high net worth and high-income separations and divorce are often different than other separations and divorce, with a different and unique set of laws applying to high-income earners.

But what are high net worth and high-income earners? Generally, in Canadian family law, “high income earners” are those who earn incomes over $250,000 per year. “High net worth” couples are those whose net family property exceeds $2M (often including residential and rental real estate, rrsp’s, stocks and other investments, etc.). “Ultra high net worth” couples are those whose net family property exceeds $30M (often involving shares in public and private companies, art, etc.).

So why are high net worth and high-income separations and divorce so difficult and complicated to resolve, and why is it so important to hire a high net worth  family lawyer to help resolve these disputes? Because special rules apply in these cases, especially regarding “high income” earners obligated to pay financial support to their spouse and children. In a previous article (see: High Income Child and Spousal Support ), we indicated that for high income earners, decision-makers (whether Judges in Court or Arbitrators in private arbitrations under the Arbitration Act), have a great deal of discretion in the setting child support and spousal support payable for incomes over $150,000/year (for child support) and $350,000/year (for spousal support). While guidelines have been established for the payment of both child support (federal or provincial Child Support Guidelines) and spousal support (Spousal Support Advisory Guidelines, or SSAGs), these guidelines are not very specific for high income earners, resulting in the situation that these cases are often determined on a case-by-case basis on the specific facts of each case, resulting in a great deal of uncertainty in the case of high income earners paying child or spousal support.  

Accordingly, high net worth and high income family lawyers look to caselaw to get a better understanding of how Judges and Arbitrators may vary from a strict application of the Guidelines in child and spousal support matters. For example, in regard to high income child support, in the recent case of Martinez v. Nichols (2024 ABCJ 77), Alberta Court of Justice D. Mah stated (at para. 38):

‘I am mindful, however, that such a rigid application of the Federal Guidelines table may result in child support payments far exceeding a child’s reasonable needs and would result in a simple transfer of wealth. Both s.4(b) of the Federal Guidelines as well as jurisprudence have recognized the right of the Court to exercise its discretion to ensure that the table amounts are neither inappropriate nor otherwise unsuitable.’

Similarly, in the British Columbia case of Williams v. Williams (2015 BCSC 112), Master Caldwell stated (at para. 20 – check) in regard to high net-worth spousal support:

‘I am satisfied that, while there may be consideration of a $350,000 ceiling, the court need not depart from the Child Support Guidelines or the Spousal Support Advisory Guidelines. In that regard I am respectfully of the view that where the parties have the type and length of relationship as is present in this case the interim support relief should seek to provide a realistic sharing of the available income or cash flow so that they may move forward in their dealings and the litigation on a somewhat equal footing.’

Clear? Perhaps not so much. Accordingly, high net worth family lawyers assist their clients to:

● distinguish when (and when not) Justices and Arbitrators may likely vary from the established Guidelines for the payment of child and spousal support;

● create a clear and comprehensive division of family property statement that takes into account exempt (ie. non-family) property and taxable vs. non-taxable property;

● compel full and honest financial disclosure to ensure that negotiations between separating couples are free from “informational exploitation” (Rick v. Brandsema, 2009 Supreme Court of Canada), while at the same time;

● maintain confidentiality of both the financial disclosure and final resolution of both financial support and division of family property because of the extent of property and prominence of the parties in the business and local communities.

High net worth and high income separation and divorce can be difficult and complex. High net worth family lawyers help their clients obtain a fair, lasting and confidential resolution of their family law matters.

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