At The Money: Divorce Planning for the Ultra Wealthy - Masters in Business Recap

Podcast: Masters in Business

Published: 2026-03-18

Guests: Patrick Kilbane

What Happened

Patrick Kilbane, a CFP and general counsel at Omen Wealth Partners, discusses how billionaire and celebrity divorces differ from typical ones. While the assets are larger and more complex, the primary difference is the privacy issues involved. These high-profile cases often require careful handling to keep away from the press, using tools like NDAs and understanding state-specific sunshine laws.

Kilbane explains that while the mistakes made in ultra high net worth divorces are similar to those in regular divorces, the consequences are magnified. The complexity of estate planning and the presence of sophisticated financial instruments such as GRATs and SLATs add layers of difficulty. These instruments are designed to be robust, making separation a challenging task with significant tax implications.

He highlights that liquidity is a major concern in these divorces. Assets might appear large on paper but can be tied up in non-liquid forms, such as concentrated stock positions. Kilbane gives the example of the divorce of Steve and Elaine Wynn, who had to sell assets to obtain liquidity, illustrating the necessity of strategic financial planning to handle these events.

The valuation of non-liquid assets like carried interest and RSUs requires coordination with external experts. Kilbane emphasizes the importance of understanding the risk and potential growth of these assets, as well as the necessity of sometimes maintaining a connection with a former spouse to realize their value.

Kilbane stresses the importance of having a divorce lawyer act as the quarterback in managing the divorce process, coordinating between various experts like accountants and estate attorneys. He sees himself as the offensive coordinator, providing advice and making suggestions to ensure the best outcome for the client.

Finally, Kilbane addresses the issue of liability protection, explaining the significance of proper asset titling and having the right insurance policies. He notes that without adequate protection, even the best financial plans can be disrupted. He also discusses the challenge of uncovering hidden assets, highlighting the need for thorough investigation of tax returns and financial statements before finalizing any settlement.

Key Insights

• Billionaire divorces often involve privacy concerns that require NDAs and an understanding of state-specific laws. This is due to the high-profile nature of the individuals involved, which necessitates careful handling to avoid media exposure.
• In ultra high net worth divorces, a one percent tax mistake can have enormous financial consequences. Couples often engage in sophisticated estate planning with instruments like GRATs and SLATs, complicating asset division during a divorce.
• Liquidity can be a major issue in high net worth divorces, as many assets are not easily convertible to cash. An example is the divorce of Steve and Elaine Wynn, who had to liquidate shares to finance their divorce, highlighting the need for strategic financial planning.
• Uncovering hidden assets in a divorce involves scrutinizing tax returns and financial statements. Clients are advised to engage CPAs to ensure no assets are overlooked before agreeing to a settlement, as financial discrepancies can signal potential undisclosed assets.