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

Host: Barry Ritholtz (Bloomberg)
Guest: Patrick Kilbane, CFP & General Counsel, Omen Wealth Partners
Date: March 18, 2026

Episode Overview

In this episode of "At The Money," Barry Ritholtz sits down with Patrick Kilbane, head of Omen Wealth Partners' Divorce Advisory Group, to explore the complex world of ultra-wealthy divorces. They discuss how high net worth splits compare to typical divorces, the unique financial and legal challenges faced, strategies for handling illiquid and intangible assets, privacy concerns, liability protection, and the importance of collaboration among specialized advisors.

Key Discussion Points & Insights

1. What Sets Ultra-Wealthy Divorces Apart

• Similarities and Differences: Kilbane emphasizes that while the core issues in divorce remain the same regardless of net worth, the stakes and privacy concerns are enormously magnified for celebrities and billionaires.

  “Celebrity divorces and billionaire divorces are not all that different. They may have more assets, more zeros in the bank account, more, more complicated assets...the biggest difference...is the privacy issues.” – Patrick Kilbane (03:09)

• Privacy & NDAs: Not only are there NDAs involved, but public records laws can complicate confidentiality, driving both parties to collaborate quickly and discreetly to keep matters out of the press.

  “We are thinking constantly about how to play keep away from the press.” – Patrick Kilbane (03:59)

2. Financial Mistakes Multiply with Wealth

• Standard Mistakes, Exponential Consequences: The typical mistakes in divorce—tax errors, asset division miscalculations—carry far greater consequences because a "1% mistake" involves millions of dollars.

  “A 1% tax mistake in your case or my case is magnified tremendously in that billionaire divorce...” – Patrick Kilbane (05:01)

• Complex Estate Planning: Ultra-wealthy families face complications due to multi-layered estate structures (SLATs, GRATs, etc.) designed for asset protection, making unwinding them during divorce fraught with difficulty.

3. Valuing and Dividing Illiquid & Complicated Assets

• Liquidity Challenges: Even high-profile, cash-rich individuals (e.g., Elaine & Steve Wynn) can be forced to liquidate significant shares to divide marital estates.

  “The Wynns had to liquidate shares of Wynn resorts to free up money for their divorce case.” – Patrick Kilbane (07:11)

• Intangible Assets & Carried Interest: Non-cash assets such as carried interest, RSUs, and options require expert valuation, and frequently, divorcing couples must decide whether to "ride along" and share future gains or attempt to value and buy out now.

  “Do we just say, okay, fine, I'm gonna roll the dice...with the carry and whether it materializes or not?” – Patrick Kilbane (09:26)

4. Coordinating Experts – The Advisor as ‘Offensive Coordinator’

• Role of the Advisor: Kilbane sees his advisory role as orchestrating a collaborative effort between the client, divorce attorney (the “quarterback”), accountants, and valuation experts. It’s critical that the client does not become the default project manager during this emotional time.

  “It's not fair for the client to be the project manager...The divorce lawyer is going to be the quarterback.” – Patrick Kilbane (10:35)

5. Highly Appreciated Founder’s Stock & Philanthropy

• Best Practices: Divorce among tech founders (e.g., Gates, Bezos) often involves significant shares at low cost basis. Strategic philanthropy—donating appreciated stock to charity—can maximize value by avoiding capital gains taxes.

  “Donating appreciated stock to...a charitable foundation...is certainly a way to do that because...you get the market value for the...stock.” – Patrick Kilbane (12:55)

• Valuing Private Companies: For non-public assets, specialized valuation experts differentiate between tangible book value and the less tangible “goodwill,” drilling down to separate enterprise goodwill from personal reputation.

  “In the higher net worth cases, a lot of these families have small businesses. It's the biggest asset in the divorce case.” – Patrick Kilbane (14:00)

6. Liability Protection During Divorce

• Asset Titling and Insurance: Proper asset titling (e.g., tenants by the entirety) can shelter assets from creditors or lawsuits, and umbrella insurance is essential. Advisors should review both titling and insurance before and during divorce.

  “Just by the way you title your assets, you can shield yourself from a potential liability.” – Patrick Kilbane (17:59)

7. Hidden Assets and Forensic Due Diligence

• Following the Money: Especially vital in ultra-wealthy divorces, careful forensic analysis of tax returns and corporate financials can reveal undisclosed assets or irregular cash flows.

  “Before you agree to a settlement. Get a CPA to help you sit down and take a look at the tax returns and see how the money's flowing.” – Patrick Kilbane (18:46)

Notable Quotes & Memorable Moments

• On The Too Much vs. Too Little Money Problem:

  “There's two types of money problems. Too much and not enough. And these people have the too much problem.” – Patrick Kilbane (05:30)

• The Importance of Local Expertise:

  “If that expert is well known to the court and to the opposing parties and they do sort of a B plus job, then maybe we need to sort of backstop them with that national expert that is really, really precise...” – Patrick Kilbane (11:37)

• On Asset Titling & Legal Protections:

  “If you hold it as tenants in the entirety then you and your wife have to be the tort feeser for me to, you know, try to go after those assets.” – Patrick Kilbane (17:09)

• Final Takeaway:

  “Billionaire divorces aren't all that different from run of the mill divorces. Sure, there are a couple more zeros at the end...but generally speaking, the risks, the boxes you want to check...aren't all that different...” – Barry Ritholtz (19:52)

Timestamps for Important Segments

• [03:09] – Key differences in ultra-high-net-worth divorces (privacy, collaboration)
• [05:01] – Multiplied consequences of financial mistakes
• [07:11] – Example: Steve and Elaine Wynn’s liquidity crunch
• [08:32] – Dealing with carried interest, RSUs, deferred comp
• [10:35] – Coordinating experts and the advisor’s role
• [12:55] – Giving appreciated stock to charity for tax efficiency
• [14:00] – Valuing private businesses: tangible vs. goodwill
• [16:25] – Importance of liability protection and asset titling
• [18:46] – Finding hidden assets via tax returns and financial forensics
• [19:52] – Wrap-up: Similarities and differences in high-net-worth divorces

Summary

This episode breaks down the nuanced world of ultra-wealthy divorce, showing that although more assets and complexity are involved, the core risks, processes, and best practices remain largely comparable to more conventional divorces. Privacy, careful financial planning, expert coordination, asset protection, and due diligence are paramount—and the emotional impact is often just as significant. For advisors and their clients navigating these waters, thorough preparation, local expertise, and a collaborative attitude can help steer even the most complicated cases toward the best possible outcome.