07 December 2016
The Impact of Brexit on Divorce and Financial Settlements
Many individuals going through a divorce or separation are now rushing to issue within the jurisdiction of England and Wales rather than in the less generous courts of some European states.
For those seeking financial settlements post-divorce the UK legal system continues to be seen as the most favourable to payees in the wake of Brexit.
That is also the case for clients with roots in the United States, especially where there are large pension funds built up in this jurisdiction as the United States continues to resist allowing for pension sharing provision post-divorce.
What is The Impact of The Brexit Vote on Prenuptial Agreements?
We continue to see a high demand for pre and postnuptial agreements. Whilst there is a concern at the falling pound, it is not generally a feature of negotiations as clients are aware that the markets can fluctuate and such agreements are for the future and not dependent on current market values.
Could Anyone Going Through a Divorce Benefit From The Brexit Vote?
It is possible that Brexit vote could benefit some people going through a divorce or separation.
Those who have seen an advantage from the drop in the value of the pound are those payees receiving maintenance paid from an ex-partner living abroad. For example, a client paying maintenance from a Swiss, Dutch or United States salary (until 9 November 2016) will be giving the payee more in sterling than was originally negotiated. This may help in future negotiations as the payee will have received monies surplus to their agreed needs.
Where there is property abroad the person receiving that property as a share of the assets might find their assets share here in the United Kingdom significantly reduced due to the drop in value of the pound.
What Happens in The Future?
The effects of the Brexit vote and the US presidential election are far reaching and drastic.
Those going through a divorce will be watching the markets and what happens to their assets. Due to the widening of the financial uncertainty caused by the election of Donald Trump they might hesitate before moving assets from this jurisdiction and they are still likely to be seeking the help of expert family lawyers here in England and Wales.
Liz Cowell is a senior family law solicitor at Slater and Gordon Lawyers in Manchester.
Slater and Gordon Lawyers is home to the largest team of Family Lawyers in the country with offices across England and Wales. You can call our international divorce solicitors on freephone 0800 916 9055 or contact us online.