This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.

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London is known as the divorce capital of the World and has built a reputation for being
advantageous to the financially-weaker party but this does not mean that a move to the UK has to spell financial ruin for the financially-stronger party upon divorce.

A spouse would need to either be domiciled and habitually resident in England for a period of 6
months or habitually resident in England for 12 months prior to filing a divorce petition.

Even if divorce is not on the horizon, it would be advisable to take legal advice early on to determine how to best protect yourself in the unfortunate event of marital breakdown.

One option is to consider a pre or post-nuptial agreement. This sets out how your respective assets will be dealt with upon divorce providing certainty and security to both parties. These agreements are not strictly legally binding but are being given increasing weight by the UK Family Courts.

Provided that the agreement is entered into freely, there is full financial disclosure and independent legal advice on both sides, it is very likely to be upheld unless it is substantively unfair.

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In the event of marital breakdown, the guiding principle for the UK Family Courts is fairness which is interpreted as equality in the first instance i.e. a 50/50 split. This can favour the financially-weaker party however this is balanced against arguments which can be made to depart from equality.

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One of these arguments is a distinction between marital assets (which can be divided) and non- marital assets which are ring-fenced from the marital pot. Examples of non-marital assets include pre-marital wealth acquired before you got married or after you have separated. An inheritance received by one spouse or gifts received by one spouse can also be considered non-marital.

 

It is crucial to ensure that non-marital assets are kept distinct and separate for the duration of the marriage and to avoid mingling these assets with marital assets to the extent where it is difficult to distinguish between them.

Where non-marital assets may need to be shared is if the needs of the financially-weaker spouse are not adequately met by dividing the marital pot. In this case, the UK Family Courts are able to dip into the non-marital assets in order to achieve fairness.

Another argument to depart from equality is where a spouse can demonstrate that they have made a particularly significant contribution to the marital asset base. This can be where one party has earned and amassed exceptional wealth as a result of their business acumen which is unmatched by the contributions made to the marriage by the other party.

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