Kingdon v Kingdon: Non-disclosure in divorce

Kingdon v Kingdon [2010] EWCA Civ 1251 established what was followed by later courts as the ‘Kingdon Approach’. 

This case concerned a financial consent order (at the time referred to as an ancillary relief order by consent) that was rendered void due to a non-disclosure of assets by the husband. The husband was ordered to pay an additional lump sum and his appeal that the order should be set aside was subsequently dismissed. 

The ancillary relief proceedings were concluded in April 2005, where the husband failed to disclose the purchase of £200,000 of shares. The husband subsequently sold some of the shares in November 2006 for a sum of £1,633,000, with a net gain of £1,268,000. The wife became aware of the non-disclosure and in 2008 wrote to the husband’s solicitors about the shares. However, the husband lied in correspondence about the sale, the value and the tax paid on the shares. 

Considering the non-disclosure, in addition to the order reached in 2005, the High Court Judge ordered the husband to pay an additional lump sum of £481,000 – which was the subject of appeal. 

The Court of Appeal held that although in some cases of non-disclosure the Court would require a re-hearing and fresh consideration of the s.25 factors, that would not always be the case. Consideration as to how to proceed would depend on an analysis of the nature of the defect generated by the non-disclosure. As a result, in this case the court determined that it was unnecessary and inappropriate to set aside the whole of the order and to direct a full rehearing of the wife’s application. Instead, the Court awarded the wife an additional lump sum to represent her interest in the non-disclosed assets. This has later been referred to as the ‘Kingdon Approach’. 

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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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