Divorcing your husband or wife is usually complicated enough, but if you happen to be an expat couple and the property and/or money you wish to divide is overseas, it can be even more difficult. Such cases often take longer, as efforts have to be made to establish the ownership and whereabouts of any assets.
Overseas assets in a divorce
Michelle and Scot Young divorce
The recent case of Michelle Young, who obtained a £20 million divorce settlement from her tycoon husband, brought this to the fore as it took 7 years for her to get that award. One of the main reasons that the matter took so long and became so acrimonious was the accusation that Scot Young had substantial assets concealed abroad. At one stage of the proceedings, Michelle Young argued these assets were worth several billion pounds.
Although the Judge eventually ruled that he did not believe that there was vast wealth hidden away, the involvement of property held overseas almost certainly elongated the proceedings.
Yasmin and Michael Prest divorce
The Supreme Court also gave its decision in another big-money divorce case last year in the matter of oil baron Michael Prest, who was ordered to pay £17.5 million to Yasmin, his wife of 15 years.
A great deal of the assets in the case were tied up in UK property which was held by offshore companies. In the Court’s final judgment, it was determined that these companies were holding the properties for Mr Prest and that their value could therefore be used as part of the divorce settlement.
Comment
Both of these cases highlight the significant complication and delay that can be caused when overseas assets are involved in a divorce, adding to what is already a complex and expensive process.
Even if assets abroad can be located and go on to form part of a financial order made in the UK against a former spouse, there is then the difficulty you may have in terms of enforcing the order.
Although enforcement action can be taken in such circumstances, which will often require the involvement of local solicitors from the jurisdiction in question, it is not automatically the case that an overseas Court will uphold the English order. This will again add to the cost (and trauma) involved.
For this reason, if you and your spouse are considering moving abroad or owning assets in another jurisdiction, it is a good idea to keep a very close eye on them, even if you are happily married.
It is important to make sure that all relevant paperwork is somewhere accessible to you both and if company ownership of such an asset is proposed by your spouse, it may be sensible to obtain legal advice first. This should hopefully go some way towards reducing the risk that assets will be concealed from you if the marriage does unfortunately end.
Overseas assets in a divorce – how Nelsons can help
If you need advice on divorce or separation, please contact our expert Family Law team on 0800 024 1976 or via our online form. The team will be happy to discuss your circumstances in more detail and give you information about the services that we can provide.