The BBC are reporting today about the Supreme Court victory of the English estranged wife of a Nigerian oil tycoon.
According to the report, the case could have implications for some wealthy divorcing couples.
When divorces take place, occasionally there is suspicion that assets are ‘hidden’ or otherwise ‘protected’ in order to minimise any financial settlement.
Looking specifically at business assets, these are usually considered to be protected from interference or compulsion from the divorce court.
This is because companies are seen as separate legal entities from individuals.
The results of the Prest v Petrodel case in the Supreme Court means that the business assets of a husband or wife’s companies remain unavailable for distribution as a result of a divorce.
There are a couple of important exceptions to this.
Where a company is set up to evade a pre-exisiting legal responsibility or where the company asset is held on trust for the husband or wife, the assets of a company could become available for distribution on divorce.
This excellent blog from our friends at Family Law in Partnership LLP explain these issues in greater depth.
It’s well worth a read if you need to consider any of these issues.
