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Courts in England and Wales can take overseas homes, offshore accounts and foreign shares into account in a divorce.
When a marriage ends, and your finances include a holiday home in Spain, shares in a company registered abroad or savings in an offshore account, working out a fair settlement involves more steps than dividing a UK house and pension. Currencies, foreign laws and local valuations all come into play.
This guide explains how courts in England and Wales deal with wealth held outside the UK. It covers what you need to disclose, how foreign property and business interests are valued, how trusts are treated and what happens when an order needs enforcing abroad. Every case is different, so use it as a starting point and take advice on your own circumstances.
Can a Court in England and Wales Deal With Assets Held Abroad?
Yes. If the court here has jurisdiction over your divorce, it can take into account assets anywhere in the world when deciding your financial settlement. Jurisdiction usually depends on either of you being habitually resident or domiciled in England or Wales. Once that's established, a villa in France, a portfolio in New York and funds in a Swiss account all form part of the picture alongside your UK assets.
Having the power to consider worldwide wealth doesn't mean it's easy to reach. Where your finances include offshore companies, trusts or property held through nominees, early advice on complex wealth in divorce from Stowe Family Law can help you plan for both the legal and practical challenges. The firm is ranked as a leading family law firm across the UK by the independent legal directories Chambers & Partners and the Legal 500, and has an international family law department for cases that cross borders. If proceedings could start in more than one country, ask about this straight away, as the country that deals with your case can affect the outcome.
What Do You Need to Disclose About Overseas Wealth?
Each of you must give full and frank financial disclosure, usually by completing Form E. This duty covers everything you own or have an interest in, wherever it is. You will need to declare:
• Property abroad, including holiday homes and rental properties
• Offshore bank accounts and investment portfolios
• Shares in companies registered outside the UK
• Pensions built up while working overseas
• Any interest in a trust, wherever it's based
• Debts and loans secured against foreign assets
Gather documents early, as foreign bank statements, local land registry records and company accounts can take weeks to obtain. Courts take non-disclosure seriously. If a spouse later finds out that assets were hidden, the court can set aside a financial order, even after it has been finalised.
How Are Foreign Property and Business Interests Valued?
Overseas property is usually valued by a local surveyor who knows that country's market. Business interests and shareholdings need closer work, often from forensic accountants who can value the company, review its accounts and trace money that has moved between jurisdictions. Once valued, these assets join the overall pool, and the court applies the same principles it uses for UK assets. That means looking at each of your needs, your contributions during the marriage and whether the assets should be shared equally.
Watch out for currency movements. An apartment valued in euros or a portfolio held in dollars can rise or fall in sterling terms between separation and the final order. Ask for valuations to be updated close to the point of settlement, and talk to your solicitor about how to deal with exchange rate changes if your agreement involves payments over time.
How Do Courts Treat Trusts?
Trusts are common in high-value cases, whether they're discretionary trusts, family trusts holding property or offshore trusts in places such as Jersey, Guernsey or the Cayman Islands. The court looks beyond whose name is on the paperwork and asks how much access or benefit a spouse has in reality. Trusts set up during the marriage for the benefit of either spouse, known as nuptial settlements, can be varied directly by the court. Trusts created by parents or other relatives are treated differently, but they can still count as a resource if a spouse is likely to receive money from them.
Company structures follow similar thinking. Courts will only disregard a company's separate legal identity in narrow circumstances, but they can still look closely at who controls it and whether assets are held for a spouse's benefit. Getting trusts and overseas assets in divorce proceedings properly assessed usually means working with forensic accountants and lawyers in the relevant jurisdiction. Collect copies of trust deeds, letters of wishes and records of any distributions you've received, as these show how the trust has worked over time.
What Happens if an Order Needs Enforcing Abroad?
A financial order made in England and Wales is not automatically recognised in every country. Transferring a foreign property or accessing an overseas account may need separate legal steps in that country, and some legal systems are more cooperative than others. Before agreeing a settlement, ask your solicitor:
• Will the order be recognised where the asset is held?
• Would it be simpler for you to keep UK assets and offset the overseas ones?
• Do you need a lawyer in the other country to complete the transfer?
Offsetting is common where assets are hard to reach. One spouse keeps the overseas property or pension, and the other receives a larger share of the UK assets to balance things out.
Get Advice on Your Settlement Before Valuations Begin
Overseas wealth doesn't put assets beyond the reach of a divorce settlement in England and Wales, but dividing it fairly takes more preparation. Full disclosure, accurate valuations, a careful look at trust and company structures and a plan for enforcement all affect the result.
Book a consultation with a family solicitor who handles international cases before you exchange financial information. Bring a list of assets in each country, recent statements and any trust or company documents you have. Starting early gives you time to deal with foreign paperwork and avoid delays later.
