In today’s world, cross border relationships and marriages are more common than ever. In our work, we see many separating couples that have a foreign aspect to their divorce. This may include working or living abroad, owning assets in different countries, or even holding multiple citizenships.
In HNW and UHNW divorce cases, it is essential that financial settlement proceedings occur in the jurisdiction that most benefits your position. For financially weaker spouses, this jurisdiction is often England and Wales.
Scotland and England have different legal systems and treat the division of finances on divorce very differently.
In a Scottish divorce, in dividing capital, the net value of matrimonial property will be divided equally between the parties. Capital assets owned before the marriage will not form part of the pot to be divided. In addition, the payment of spousal maintenance is limited to the three years following divorce and will be quantified at a level which moves the spouse towards independent living, which is unlike spousal maintenance in England.
In contrast, the English court has an almost unfettered freedom to redistribute the assets of the parties as it sees fit and fair, regardless of the source or ownership of the assets, and therefore these assets may be accessed to meet the needs of the spouses.
If you have a connection with a different jurisdiction, whether it is Scotland or elsewhere, you should first establish whether you can get divorced in those jurisdictions and, if so, what the financial outcome may be compared to England and Wales. This information should be obtained without delay so that you preserve the option to issue proceedings in a country that is most favourable to you. Contact Vardags for a free initial consultation with one of our expert divorce solicitors.
This is because courts in England and Wales typically aim for equitable division of assets, considering factors such as each spouse’s financial contribution, needs and future earning potential as well as non-financial contributions. In comparison to other jurisdictions, the English courts emphasise equality in financial settlements and start from 50/50, treating the same the breadwinner and homemaker of the marriage.
For these reasons, the media often reports London as the ‘divorce capital of the world’.
It is likely, therefore, that whether a divorce proceeds in England or Scotland will make a significant difference to the outcome of the finances in a case.
Vardags’ team of top divorce lawyers serving clients in England and Scotland delivers a bespoke legal service to HNW and UHNW individuals, their families and businesses.
The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.
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