How are offshore assets valued for divorce?

Offshore assets are properties, investments, or financial interests held outside the UK. These may include overseas bank accounts, holiday homes, shares in foreign companies, or interests in offshore trusts. In divorce proceedings, these assets are subject to disclosure and may be included in the financial settlement.

Valuing offshore assets in divorce requires expert input and jurisdiction-specific knowledge. Courts typically recommend that both parties jointly appoint a valuation expert familiar with the legal and tax rules of the country where the asset is located.

Read more on how the courts treat these assets here.

Key steps in the valuation process:

1. Full disclosure of all offshore holdings
2. Engagement of local experts (e.g. real estate agents, accountants)
3. Consideration of tax implications in the relevant jurisdiction
4. Adjustment for currency fluctuations and market volatility
5. Court review to ensure fairness and transparency

Why Offshore Assets Are Challenging to Value

Valuing offshore assets is often more complex than valuing UK-based property due to:

• Jurisdictional differences in tax and property law
• Lack of transparency in some offshore financial systems
• Difficulty enforcing disclosure
• Post-Brexit complications with EU-based assets

Legal Considerations in the UK

UK courts follow the principle of fairness when dividing matrimonial assets. Offshore assets acquired during the marriage, or used by both parties, are generally included in the marital pot. However, assets acquired before marriage or inherited may be treated differently - unless needed to meet the other party’s needs.

FAQs: Offshore Assets in Divorce

Q: Are offshore assets always included in a divorce settlement?

A: Not always. If the asset is considered non-matrimonial (e.g. inherited or acquired before marriage), it may be excluded - unless needed to meet the other party’s needs.

Q: Can offshore assets be hidden during divorce?

A: Attempting to hide offshore assets is a serious offence. Courts can impose penalties and even reopen settlements if non-disclosure is discovered.

Q: Who values offshore assets in a divorce?

A: Typically, a jointly appointed expert with knowledge of the asset’s jurisdiction - such as a local real estate agent or international accountant.

Q: What if my spouse refuses to disclose offshore assets?

A: The court can issue disclosure orders and may draw adverse inferences if a party is found to be hiding assets.

Vardags specialises in divorce cases with an international element. If you require a valuation of an offshore asset for your divorce proceedings, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.  

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