The interrelation of family wealth and family offices

The landscape concerning family wealth is evolving and there is projected to be a corresponding ‘rapid expansion’ of family offices in the coming years with a 75% increase in family offices expected by 2030. The estimated wealth of families with family offices currently stands at US$5.5 trillion and is expected to grow to US$9.5 trillion by 2030 – a 189% increase. The Deloitte Private report of September 2024 provides insights into the future of family offices and the evolving landscape and is referenced throughout this article. 

With many wealthy families now choosing to manage their wealth and investments through private offices, wealth structuring and an almost ‘commercial filter’ to personal wealth - this will likely have an impact on the management of wealth in the event of a marriage breakdown, as well as when considering and planning for upcoming nuptials.

We highlight some key points below concerning the interrelation of family offices and family wealth.

Nuptial agreements

Pre and post nuptial agreements are becoming increasingly commonplace and particularly since 2010 when the Supreme Court gave guidance in the case of Radmacher v Granatino that the court should give effect to nuptial agreements which are fair and are freely entered into, they are now accepted and considered as a useful wealth management tool. Generally speaking, it is more common for pre-nuptial agreements to be entered into – a practical discussion regarding finances before entering into marriage, although post nuptial agreements can be equally beneficial.

Some families with significant wealth will insist (or strongly encourage) younger generations to enter into nuptial agreements. Additionally, following the Supreme Court decision in Standish in July 2025 concerning the sharing of matrimonial property, it is considered by many family lawyers that nuptial agreements will continue to have growing importance as clear principles were set out showing how the court will consider matrimonial property (which should be shared between the spouses). Therefore, having a clear agreement as to what is ‘separate’ or non-matrimonial property and will be beneficial to the spouse seeking to protect any family assets.  

As mentioned above, nuptial agreements are particularly important for the more wealthy spouse wishing to protect their assets and those who are bringing significant wealth into the marriage -this could be entrepreneurs who have built up or sold businesses or those who have family wealth (and those with family offices). Whilst the family office, and wealth structuring, adds a layer of complexity and a somewhat commercial filter, all resources and any financial assets from which either party might benefit need to be disclosed during financial proceedings on a divorce. 

The structure of the family office

Given the projected figures and expansion in number of family offices, it will be interesting to see what impact this might have on financial proceedings upon a divorce (even in negotiated settlements). There may be an added level of advisors and management of family (personal) wealth which could add in delay to matters, or, conversely, having the structure of an office can streamline and help in providing clear and concise disclosure. In the recent case of Helliwell v Entwistle, the Court of Appeal overturned a decision to uphold a prenuptial agreement on grounds of deliberate non-disclosure.  Family offices can be invaluable in ensuring financial disclosure requirements are met in financial proceedings on divorce and/or when a prenuptial agreement is entered into.

The fact that wealth is managed via an office and potentially held through various structures, rather than by the individuals involved directly, would also need to be addressed and explained during the disclosure process. If spouses have enjoyed family wealth throughout the marriage, but it is essentially held by the generation preceding (be it the parents of a spouse or the wider family) that too would need to be explained – is it a resource, reflective of a particular lifestyle or an indication of an imminent transfer of wealth? 

There may also be issues concerning privacy and it is likely that family offices will be keen to keep private matters outside of the court arena.

Conclusion

The Deloitte report outlines that: “Family offices’ surge in popularity is driven by a combination of factors, including increased wealth concentration, successful transfers of generational wealth, robust private equity and Mergers & Acquisitions markets, and the pursuit of more customised investment strategies and services”. 

It is these transfers of generational wealth that could be relevant upon a divorce – how should an expected future inheritance or an interest that is managed via a family office be treated (and should or could it be shared particularly in the absence of any nuptial agreement) or how can it be protected?

The report outlines that “in looking ahead, many family offices are staying true to the traditions of past and current generations, while also evolving to meet the needs of future generations,” and the landscape is expected to change rapidly over the next decade.