In today’s world, many separating couples have an international aspect to their relationship. This includes working or living abroad, owning assets in different countries, or holding multiple citizenships.
Divorce laws vary greatly between countries, which will significantly affect the financial outcome. Often, there isn’t a straightforward choice when deciding the best way to proceed, and so it is crucial to seek advice to select the most favorable jurisdiction for your divorce.
Yes, you may be able to divorce in England even if you live in the US or were married abroad. To do so, you must meet the jurisdictional criteria, which typically include:
Alternatively, you may qualify to divorce in the US, depending on the state residency rules. In the US, divorce is governed at the state level, not federally, and each state has its own rules for divorce, child custody, and financial settlements.
If both England and Wales and the US have jurisdiction to deal with your divorce, you will have the choice to decide which is best for you. In deciding, there are practical considerations that must be taken into account, such as how long you would need to wait before you can divorce and the financial implications of divorcing in that country.
England is a popular place for divorce; even the media has dubbed the UK ‘the divorce capital of the world’. This is because the English courts apply a principle of non-discrimination when it comes to the parties’ contributions to the marriage when the parties have adopted traditional roles of the homemaker and the breadwinner. For this reason, England is often considered the preferred jurisdiction for the financially weaker party, as it tends to offer more generous provisions compared to most other countries.
Pensions can constitute a substantial part of family assets, and special attention is required to ensure that any UK order regarding these assets is enforceable in the US.
To divide any qualified retirement plan held in the US, a Qualified Domestic Relations Order (QDRO) is required. This court order mandates that a portion of the retirement plan be assigned or paid to another person in the event of a divorce. A pension sharing order issued by the English courts during divorce proceedings can be converted into a QDRO, in collaboration with the relevant pension company, to ensure it is accurately drafted and enforceable.
QDROs can lead to complex tax liabilities, so it is essential to seek expert advice early on.
We collaborate closely with family lawyers in the US to ensure the best possible outcome for your case. Contact Vardags for a free initial consultation with one of our expert divorce solicitors.
Foreign property, including property based in the US will also form part of a financial settlement within English divorce proceedings.
Divorce doesn’t always require the division of all assets. Often, one party may retain a property entirely in exchange for another family asset. This type of settlement is crucial for avoiding unnecessary tax obligations.
We collaborate closely with tax and financial advisers in both the UK and US to ensure that the financial outcome of the divorce is tax-efficient for both parties. Contact Vardags for a free initial consultation with one of our expert divorce solicitors.
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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