In UK divorce, assets and debts are generally divided at the same time, with a financial order made by the courts. Without this, there is a risk of a financial claim at a later date. If you have overseas assets, the divorce court will consider them as well.

Both parties will disclose all of their assets and liabilities to each other as part of the process, and all overseas assets should be included. The court will take these into account when making the financial order.

What is an Overseas Asset or Foreign Asset?

Any property held outside of the UK constitutes a foreign asset. Common types of overseas property dealt with in divorce include:

• Cash
• Offshore trusts
• Digital wallets held overseas
• Property, including holiday homes and investment properties
• Shares in overseas companies
• Overseas business interests
• Land
• Retirement funds held overseas
• Overseas stocks
• Bank accounts held overseas
• Vehicles registered abroad

How Are Foreign Assets Divided?

Foreign assets are dealt with in the same way as those held in the UK. The first step is to list all holdings and formally disclose them to the other party. This is usually done by completing Form E, a comprehensive form used in divorce to list all assets, debts and financial obligations. There is a section in the form for foreign assets, and both parties are under a legal obligation to disclose all foreign assets to the court and to each other.

The next stage is usually to try to negotiate an agreed division of the assets and liabilities, with each party’s solicitor representing them in the discussions. Our guide to dividing assets in divorce sets out this process, and what happens if you cannot reach an agreement.

How Do the Courts Consider Overseas Assets in Divorce?

The courts will include the value of foreign assets when considering how to split finances when making an order. They will look at what they consider to be the most appropriate division. For example, if one party has the main day-to-day care of the children of the family, the court will try to ensure they have a suitable property to live in.

If assets belonged to one party before the marriage and were kept separately from joint assets, the court may decide not to include them in the pool of matrimonial assets. However, if it is necessary to include these assets to adequately provide for children or to provide fairly for the other party, they can be included.

Valuation of Foreign Assets

You will need professional valuations of overseas assets for divorce purposes. These can be obtained from experts such as overseas real estate agents, international accountants and business valuation specialists.

To reduce costs, you may be able to agree on an expert with your former partner and share the costs of the valuation.

For holdings such as shares or bank accounts, you will need to provide the official paperwork, such as share certificates, dividend vouchers or bank statements, together with a certified translation where necessary.

Complexity of Foreign Assets Within Divorce Proceedings

Dealing with overseas assets generally makes the divorce process longer and more complex. It takes time to obtain formal valuations and any necessary certified translations, and problems can also arise if one party is obstructive or attempts to hide foreign assets and legal action is required in the relevant country.

Accounting Issues and Documentation for Foreign Assets

It is likely to take longer to obtain accounts and documentation for overseas assets, and where they are not in English or Welsh, the parties will also have to pay for a certified translation of each document.

What If You Suspect Your Spouse Has Not Disclosed Assets Abroad?

It can be complex to locate overseas assets if they are not freely disclosed. The general penalties for non-disclosure apply whether the hidden assets are in the UK or abroad, and the courts can reopen a case, with no time limit, if it later emerges that assets were not disclosed.

Where the court believes that assets have been hidden, it can make an order accordingly. For example, if £500,000 has been disclosed, but the court believes that a further £500,000 has not been disclosed, it may award the disclosed £500,000 in full to the innocent party.

A party suspected of hiding assets may also be required to pay the other party’s legal and other fees, including the costs incurred in trying to locate the assets.

The courts also have the power to request an order from an overseas court requiring financial or other institutions to provide financial documentation.

Are Court Orders Enforced Abroad?

UK court orders can often be enforced overseas, although this depends on the jurisdiction. It may be necessary to register the order in the local courts or to relitigate the relevant issues there.

It may be possible to transfer assets, redirect overseas income or recover funds through overseas courts.

Once a financial order is made, enforcement action can then be taken as necessary, should the party at fault fail to comply with the order.

What If One Spouse Wishes to Relocate Internationally With the Child of the Family?

If a parent wishes to move abroad with a child, they will need the written permission of everyone with parental responsibility for the child. This will usually include the child’s other parent. Moving without this permission is child abduction, which is a criminal offence.

Where permission is not granted, the parent wishing to move will need to obtain a court order. In looking at the case, the court will always prioritise the best interests of the child. The parent will need to show that the reason for the move is genuine, such as to be near family or take up a new job, and not to take the child away from their other parent.

The court will also take into account how it is proposed that the child maintain contact with the parent left behind.

The judge will go through the welfare checklist, as set out at Section 1 of the Children Act 1989, as follows:

• The child’s wishes and feelings, taking into account their age and understanding
• The child’s physical, emotional and educational requirements and how it is proposed that these will be met if they move overseas
• The impact on the child of the proposed move
• The child’s age, sex, background and any other relevant characteristics
• Any risk of harm to the child
• How capable each parent is of meeting the child’s needs
• The range of powers available to the court when making an order

Contact Our Divorce Solicitors

If you have questions about the division of overseas assets in a divorce, our family law solicitors will be able to advise you. You can ring us on 0300 303 2071, email us at info@witansolicitors.co.uk or fill in our contact form and we will talk through your situation with you and discuss how we can assist. We have offices in Birmingham, Northampton, London and Wellingborough.