How Are Foreign Assets Divided in Divorce?

Assets overseas are treated in the same fashion in a divorce settlement to those assets held in this jurisdiction. The crucial first step is for the parties to look to agree on a valuation for the asset, which may require the instruction of an overseas expert to assist. Of course, a foreign bank account or shares held overseas are comparatively simple to value, whilst foreign businesses or other complex assets and associated tax regimes may make other valuations more complex.

Ideally, the parties will work together to source an appropriate expert to help them both settle on an agreeable valuation. Once the parties have a settled valuation for a foreign asset, it will form part of the pot for division between the parties by the court in this jurisdiction, subjected to the same law as assets held in this jurisdiction.

Our team of divorce solicitors in Milton Keynes will be able to provide detailed expert advice tailored to your circumstances. In the meantime, the following article provides a useful overview of how foreign assets are divided in a divorce.

Foreign assets are often comparable to assets held in this jurisdiction, as they are frequently acquired through a period of one party’s life living or working overseas. They regularly include “practical” assets reflecting these arrangements, such as bank accounts, a property or a vehicle, but also include “investment” assets too, e.g. shares, dacha or other holiday home, together with business interests.

One of the common features of overseas assets is that they are held with an associated third party, such as another family member, e.g. overseas property held with other family members. It is important to ensure that the applicable local law is understood to ensure that a party’s interest in the asset is appropriately valued and managed. This may require specialist advice from a lawyer in the relevant jurisdiction.

If parties cannot agree their own valuation for an overseas assets, expert valuers can be instructed to assist them. In the event that it is required, the court can coordinate the valuation of an assets held overseas, if the parties require assistance in organising the process.

Concern that your spouse may attempt to hide assets they hold overseas will naturally add a layer of complexity to any dispute regarding financial settlement. If you suspect that your spouse has not fully disclosed assets they hold overseas, then it is important to work with your solicitor and other specialists to try and find signs of hidden assets and take action to ensure that full disclosure of the assets is provided. Working with forensic accounts and other specialists is complex work and it is important that the proportionality of this investigation is fully considered.

If your spouse is found to have purposely not disclosed assets overseas, the court has powers to set aside settlements. If you think this is relevant to your circumstances, it is vital you speak to a solicitor as soon as possible.

Once parties have agreed a financial settlement, the terms of that settlement should be recorded in a court order, often referred to as a consent order. Court orders from this jurisdiction are usually enforceable overseas without too much difficulty in territories such as America, the EU, the Commonwealth nations but this can still occasionally be problematic and cost disproportionate.

The courts here have well established arrangements with other jurisdictions to uphold the terms of court order made here in relation to overseas assets.

It is vital that you work with a solicitor to understand the risk associated with foreign assets in question, including potential issues of enforceability, and factor these risks into the terms of the final settlement reached with your former spouse.

Ready to take the next step? As leading divorce lawyers in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. We also have offices in in Bicester, Watford and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.