High-Net-Worth Contentious Disputes

Trusts can be exposed to challenge if in fact they are trusts only in appearance, and not in reality. There are many circumstances that give rise to a challenge, and the principal challenge occurs when the trust arrangement is intended to defeat the legitimate legal claims of others.

Most attacks on a trust focus on the language of the document itself, its technical validity, or the behavior of the trustee. However, there are other avenues and tools that are available to attack the integrity of trusts. Be sure to join us in this session as our experts explore some of the most common and successful strategies and tools to challenge trusts, including:

• Undue influence
• Fraudulent conveyance or preference statutes
• Equitable remedy of mistake
• Breach of fiduciary duty
• Misconduct in operating or revoking the trust

When contemplating or anticipating a divorce filing, it is not uncommon for a wealthy party to the marriage to conceal their wealth in complex offshore holdings, trusts, and other methods of hiding those assets from their spouse. To effectively identify and value assets that have not been disclosed – or are grossly undervalued – in divorce proceedings, it is important to utilize the latest legal, forensic and investigative tools to trace, trap and return those hidden assets to the marital estate.

Some of the challenges, tools and assets that will be discussed in this engaging session include:

• Hurdles to gathering evidence in multiple foreign jurisdictions
• How to effectively and ethically utilize forensic accounting and corporate intelligence for high stakes matrimonial asset recovery investigations
• Creative use of insolvency tools in matrimonial cases

Art assets, cultural heritage property, bankruptcy estate assets, bribe payments, corruption proceeds, assets belonging to UHNW divorcing spouses, and almost anything else can conceivably be transferred secretly. This can be done by using common concealment methods to “wash” the assets in a laundering circuit, and HNWI’s may conceal assets from creditors, domestic tax authorities, law enforcement officials, bankruptcy trustees, court-appointed receivers and others. In this session our speakers will utilize case studies to explore common asset concealment methods and demonstrate how money laundering circuits work. We will also review the ways determined criminals and others try to hide art assets & cultural heritage property, by reviewing some common concealment methods such as:

• Multiple jurisdictions
• Trusts and shell companies
• Intermediaries (a.k.a “nominees”)
• Portable valuable commodities
• Diamonds
• Offshore bank accounts

Cross-border insolvency laws for HNWIs present a complex landscape within which practitioners must navigate, with an eye towards foreign substantive law and an array of other foreign insolvency and asset recovery-related proceedings.

In this session, our panelists will discuss the nuances of cross-border insolvency and restructuring laws in different global jurisdictions, including discussions on:

• Navigating through global cross-border insolvency and restructuring laws
• Comprehensive strategies on debtor-side assignments and practical tips for handling complex and sophisticated creditor rights matters
• Initiating recovery efforts from corporate misconducts and sophisticated creditor rights matters
• How to utilize insolvency and restructuring as mechanisms for recovery
• Initiating and following insolvency claims simultaneously in more than one jurisdiction

Exotic assets that diversify the portfolio and increase in value over time are often very attractive to HNWIs. Despite the significant advancements in investigation and asset location tools at the disposal of asset recovery practitioners, the class of assets that are considered “exotic” pose unique and difficult challenges and considerations. In this engaging session we will review:

• Emergency freezing orders injunctions: obtaining and maintaining equitable relief
• Jurisdictional concerns
• Assets protected by state-owned entities and immunity doctrines
• How to assemble the correct asset recovery team
• Collaborating with law enforcement and other government agencies to assist with recovering assets from foreign markets that are unstable in nature

The intricacies of asset division and the significance of “pre-marital wealth” in HNW dissolution matters are increasingly complex, especially when considering pre-marital contributions to the asset pool. Join us in this session as we discuss:

• Legal implications – and the impact on financial remedies – set by Standish v. Standish
• The foundation and application of the “Sharing Principle” when considering the division of assets
• The importance of properly and conclusively accounting for pre-marital wealth
• Considerations for a proper “needs assessment”

The rise of Alternative Dispute Resolution (ADR) in high-net-worth disputes reflects a shifting paradigm in the legal and litigation landscape. ADR methods such as mediation, negotiation and collaborative law can offer a more amicable and cost-effective approach to dispute resolution. In addition, ADR can help mitigate the financial and emotional toll of court battles, preserve relationships, and facilitate more equitable outcomes.

As ADR continues to gain traction, it is poised to play a critical role in shaping the future of HNW proceedings. Join us as we examine the elements of some of the more accessible, efficient, and empathetic pathways to conflict resolution in HNW matters, including:

• Non-court dispute resolution (NCDR)
• Mediation & Arbitration
• Conciliation