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Jo Edwards, Resolution’s Vice Chair: Petrodel v Prest

Date:12 JUN 2013

This landmark ruling provides some degree of clarity into the often-debated points around the corporate veil although the devil is as always in the detail.
Although they have upheld the original High Court ruling in the judgments offered the Supreme Court has effectively said that any spouse with significant wealth can tie up their assets in a business to protect themselves in the event of marital breakdown. This could give the economically powerful even more power during the divorce process and lead to greater financial imbalance in many post-separation outcomes.
On the other hand the Supreme Court has upheld the rule of law providing some certainty in relation to company law structures and how they interact with family law issues.
There are therefore potentially far-reaching implications for family law and Resolution will be providing training for our members over the coming months to explore these implications in more detail.
It is also worth noting that the couple have four children under 17 a fact which has often been overlooked in coverage of the case. Whether you're dealing with assets of £37m ...

Read the full article here.