A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 26
OFFSHORE ASSETS ARE NOT BEYOND
T H E R E A C H O F T H E E N G L I S H FA M I LY
C O U RT – T H O U G H I T W I L L FAV O U R M O R E
ENFORCEABLE ORDERS CENTRED ON THIS
COUNTRY
IN
T
BU
ERNATIO
N
A
L
SINESSES
While many may think that an asset
Whilst the English Family Court can
would be outside the reach of the English
make orders for the transfer or sale of
Family Court if it is based offshore, this
those assets, it has less influence over
is simply not the case. Provided one or
whether or not that order is capable of
both of the spouses have a connection
being enforced in the foreign jurisdiction.
to this country through either their
As such, many English Family Court
habitual residence or domicile, divorce
judges would favour making orders
proceedings
The
over assets based in this country rather
English Family Court has the power to
than those which are offshore to seek
make orders in relation to a spouse’s
to minimise the risk of the financially
worldwide wealth. It is therefore vital
weaker spouse having to spend months,
for international families with business
possibly years, seeking to enforce
interests
the
the order if the financially stronger
exposure of its shareholders to this
spouse breaches their Court imposed
jurisdiction given that it is known to be
obligations. This is certainly something
far more generous to the financially
for family businesses to be aware
weaker
of if its shares are the only asset of a
to
can
be
consider
spouse
than
issued.
carefully
most
others.
Foreign assets do, however, come with
shareholder spouse in this jurisdiction.
their own challenges.
A LEGACY INTACT - EXPOSURE
27
