Discovering financial assets: Goddard-Watts v Goddard-Watts [2023] EWCA Civ 115

This case presented the courts approach in dealing with the discovery of a party concealing true financial assets after the division of the assets by way of a Consent Order. 

Mr and Mrs Goddard-Watts began living together in 1987, married in 1996, and had three sons. They divorced in 2010, agreeing on the division of family assets in a consent order. Under this agreement, the husband retained his business interest while the wife kept the family home. 

However, it was later revealed that the husband had not disclosed certain trust assets, which the court determined in 2015 to be a material non-disclosure, leading to the order being set aside. The court reassessed the case and awarded the wife additional funds to account for this non-disclosure. Yet again, the husband failed to disclose crucial information regarding the potential sale of his business, which resulted in a share sale worth £25 million and a potential further £75 million. Consequently, the second award was also set aside in 2020, and a new hearing was scheduled in 2022 to determine a fair division of the assets. 

At the 2022 hearing, the judge adhered to the limited approach set forth in Kingdon v Kingdon. This meant that he focused exclusively on the non-disclosed assets, leaving the rest of the award unchanged. Consequently, he granted an additional award based on the wife’s needs without reassessing the entire settlement. 

However, Mrs Goddard-Watts appealed this decision, and the Court of Appeal sided with her. The court found that in cases of non-disclosure, it has the flexibility to tailor its approach to the specifics of each case, which might sometimes include following the ’Kingdon Approach’. Nevertheless, it was noted that the ’Kingdon Approach’ was inappropriate here because the case couldn’t be confined to a single issue. For instance, Mrs. Goddard-Watts had made significant contributions to the family’s welfare and supported the children, who were estranged from their father.  

The Court concluded that the fraudulent non-disclosure in this case was so extensive that it required a comprehensive reassessment of the financial settlement, starting from a clean slate. 

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If you are a high-net-worth individual going through or considering a divorce, it is crucial to have an accurate valuation of all your spouse’s assets. Whether these assets are held in complex international trusts, hidden within investment portfolios, or concealed through intricate share structures, they must be identified and considered for a fair settlement. 

If you’re considering or going through a divorce and suspect that your spouse is not fully disclosing his or her financial situation, we can help. Click below for a free initial consultation with one of our expert divorce solicitors. 

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