Dealing with Complex Financial Arrangements in International Separations

Divorce and separation can be highly difficult areas of law, especially when the split is adversarial, and the affairs and estates of the two parties are complex. When the separation takes place across national boundaries, the difficulty is even more considerable. So, how does a separation of this kind work?

Understanding Jurisdiction in International Financial Settlements

Jurisdiction is not arbitrary in the UK. It’s primarily governed by the Domicile and Matrimonial Proceedings Act 1973, though other laws in the EU and elsewhere might help to shape decisions. Courts may accept jurisdiction when one spouse is resident in the country in question. The location of any children might also be considered. Courts in the UK will tend to recognise foreign divorces and financial orders, but there’s no guarantee that foreign courts will reciprocate.

Identification and Disclosure of Overseas Assets

Full financial disclosure is required, even if assets are being held abroad. If you try to hide something from your former spouse, then you could be made to pay heavy penalties. Property, investments, trusts, and businesses should all be disclosed, wherever in the world they might be.

It’s worth being honest and upfront about these things as early as possible in the process. This will establish goodwill, and prevent the process from dragging on for longer than it reasonably needs to.

Enforcing Financial Orders Across Borders

Of course, it’s more difficult to enforce an international financial order than it is a domestic one. But the courts in the UK have a number of levers to pull. They might issue a freezing injunction (once known as a Mareva injunction), which can apply worldwide, and prevent parties from disposing of their assets. Getting a financial order registered in a foreign jurisdiction can ensure that it’s recognised.

Problems tend to arise from shell companies and offshore trusts that might be deliberately used to frustrate enforcement. However, courts have some limited power to freeze assets in cases where they’re being held by third parties.

The Role of Experts in Managing Complex Financial Cases

Of course, no layperson could hope to understand the intricacies of complex international financial cases. Even professional lawyers might not be able to approach the level of expertise offered by a good family law specialist. Experts might facilitate asset tracing and valuation, and help you to negotiate and devise your strategy.

The vast majority of countries will recognise judgments made in UK courts. But a few will only do so selectively. In some cases, parties may be required to bring fresh proceedings abroad, effectively doubling the cost of the separation. This is something to be aware of when you’re devising your strategy. Again, the advice of the right lawyers might spell the difference between success and failure.