England & Wales or Liechtenstein: Where Should I Divorce?

Liechtenstein occupies a singular position in the world of international wealth. A small civil law principality nestled between Switzerland and Austria, it is home to an exceptionally developed framework for foundations, trusts, and private wealth structures – and it was the first continental European jurisdiction to recognise trusts in statute. For HNW and UHNW individuals with assets or connections there, that framework can have profound implications when a marriage breaks down. 

Can I Divorce in England if I Have Connections to Liechtenstein? 

If you or your spouse is habitually resident or domiciled in England and Wales, it may be possible to bring proceedings here even where significant assets are held in Liechtenstein. As a civil law jurisdiction, Liechtenstein operates a fundamentally different legal system from England, and the interaction between the two is likely to be a central strategic consideration. Specialist advice should be sought at the earliest opportunity. 

What Are the Key Differences? 

Liechtenstein’s default matrimonial property regime operates on a principle of separation of property during the marriage: each spouse is generally regarded as the sole owner of assets held in their name, whether brought into the marriage or acquired during it. On divorce, what is subject to division is broadly the increase in each party’s assets achieved during the marriage – a more prescribed and formulaic starting point than the broad discretion exercised by English courts. Maintenance is available, but tends to be assessed within a more structured framework, with less scope for the kind of substantial long-term awards that can be made in England where the circumstances may warrant them. 

The most distinctive feature of Liechtenstein in a divorce context, however, is the role of its wealth structures. Liechtenstein foundations and trusts are widely used as vehicles for protecting private wealth, and the principality’s asset protection laws are specifically designed to shield such structures from creditor claims, which can include claims arising in family proceedings. A divorcing spouse seeking to include assets held in a Liechtenstein foundation or trust may face significant practical and legal obstacles, not least because Liechtenstein courts have shown a reluctance to assist foreign proceedings that seek to compel disclosure of or access to such structures.  

By contrast, the English courts are generally regarded as among the most sophisticated in the world when it comes to identifying and reaching behind complex wealth structures. Where assets are held in foundations or trusts with a Liechtenstein connection, the English court may in appropriate circumstances treat a spouse’s beneficial interest as a financial resource, and can fashion remedies designed to give practical effect to a fair settlement even where direct enforcement may be difficult. 

Marriages with connections to both England and Liechtenstein raise some of the most complex jurisdictional questions in international family law. If that describes your situation, seeking specialist advice immediately — before your spouse does — is likely to be critical. Contact us for a free initial consultation.