Writing for Professional Adviser (free subscription required), G&G Law partner and co-founder Neil Graham explained the importance of clients understanding why choice of jurisdiction is so crucial upon divorce.
Where should I file for divorce?
The article notes that divorce rates in the UK remain significant, with a large proportion of marriages ending before the couples’ 25th anniversary. Against this backdrop, jurisdiction has become increasingly important. Families’ assets and income streams are now more international than ever, particularly when it comes to high net worth couples. Where more than one country could hear the divorce, the choice of forum can dramatically alter how assets are divided and what level of support a spouse may receive.
England and Wales remains widely regarded as one of the most generous jurisdictions for the financially weaker party in a divorce. Since the landmark White v White decision, the family courts have moved beyond a basic “needs only” approach and towards a broader concept of fairness assessed against the yardstick of equality. This can include sharing substantial capital, business interests and future income, making England an attractive forum for some spouses and a high-risk jurisdiction for others.
Forum shopping and the importance of legal advice
Neil’s article also summarises the concept of “forum shopping” and the race to issue proceedings that can break out when a couple decides to separate. In most cases, the outcome will no longer just depend upon in which country the race is first begun but upon which country has the strongest connection with the marriage and in which country, therefore, the race is finished. Starting proceedings in the less favourable country means there will be no scope to argue a change of course later.
Pre-nuptial and post-nuptial agreements can deal with the issue of forum as well as the division of assets.
Considering the subject from an adviser’s perspective, the article stresses the importance of early, specialist legal input. Neil encourages financial advisers, wealth managers and international professionals to understand jurisdictional risk, spot warning signs and work closely with family lawyers on behalf of clients. Doing so can help protect their assets and deliver better long-term outcomes while managing expectations. Complex divorce cases can involve multiple legal systems – obtaining advice early, decisiveness and strategic thinking are essential.
