Chai v Peng

The case of former beauty queen Pauline Chai and her businessman husband, Khoo Kay Peng, is one of the largest and most complex to come before the English courts. The couple were married for 43 years, as the Malaysian businessman built up a multi-million pound empire, which includes high street name Laura Ashley.

Their divorce began in 2013, when the wife Ms. Chai, represented by Vardags, issued a petition for divorce in London. The husband disputed that she had the necessary link to England to do so, and so issued his own petition in Malaysia. For nearly two years, the parties fought over the correct jurisdiction for the case to be heard.

Ms. Chai argued that the case should be heard in England, based on her habitual residence in their property in Hertfordshire. She also feared that she would be unable to receive a fair settlement given her husband’s influence in Malaysia. Mr Justice Bodey noted that Ms. Chai did not share the same meaningful connections with Malaysia as her husband. Although the couple were both originally from Malaysia and married there, Ms. Chai left the country in 1980, whilst her husband continued living and working there. Ms. Chai moved with their five children to Australia, Canada, and then the UK, living apart from her husband for much of the marriage.

The husband argued that Ms. Chai was a ‘forum-shopper’ and had petitioned in England purely to obtain a greater financial settlement than she would be awarded in Malaysia. This was rejected on the basis that there was not sufficient evidence to suggest that the Malaysian Court would have awarded Ms. Chai a significantly smaller settlement.

Mr Justice Bodey, of the English High Court, ultimately ruled that England was the correct forum, a ruling later approved by the Court of Appeal.

Mr Justice Bodey followed the general starting point of the courts in deciding a financial settlement, which is the ‘yardstick of equality’ - the principle of equal sharing of matrimonial assets. In doing so, he rejected the husband’s claims that this should be departed from on the basis of taking ‘a sideways look’ at Malaysian law, as well arguments related to pre-acquired wealth and special contribution.

In April 2017, Pauline Chai was awarded a £64 million divorce settlement, one of the largest ever recorded.

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Reported judgments

Chai v Peng EWHC 3518 (Fam) Chai v Peng EWHC 3519 (Fam) Chai v Peng EWHC 1519 (Fam) Chai v Peng EWHC 750 (Fam)

Press coverage

Final judgment

The £64m divorce that shows English courts recognise each spouse’s role in a marriage (The Times)

Laura Ashley boss, 78, is ordered to give his wife, 70, £64million in their divorce settlement as their long running high court battle finally finishes (Daily Mail)

’Homemaker’ ex-wife of Laura Ashley boss wins a third of his £200m fortune after bitter divorce battle (Telegraph)

Decree Absolute

Laura Ashley boss and wife mired in financial dispute end marriage (Guardian)

Financial proceedings

Judge orders Laura Ashley tycoon to stop wasting time and settle his £440million divorce battle with former Miss Malaysia wife (Daily Mail)

Laura Ashley boss ordered to make his wife an offer in ’titanic’ £440m divorce battle (Telegraph)

Court orders Laura Ashley boss to settle ’titanic’ divorce case (Guardian)

Decree Nisi

Tycoon’s wife gets decree nisi in London court (The Straits Times)

Laura Ashley boss’ marriage to former beauty queen Pauline Chai ends amid £440m divorce battle (Independent)

Former Miss Malaysia wins battle to have Laura Ashley boss ex-husband’s £440million fortune divided in UK courts where she will get a better deal (Daily Mail)

Financial proceedings

Laura Ashley boss told to ‘stop carping about cashflow’ and pay wife £500,000 (The Times)