William Massey: Threats to the integrity of trusts on marriage breakdown

William Massey Partner Farrer and Co LLP UK

Although the favourable tax regime has made England an attractive place for wealthy non-domiciliaries to live it has also become an extremely good venue for their poorer spouses to bring divorce proceedings. Since the case of White in October 2000 and the subsequent decisions of for example London has become one of the most generous places for the less well off party to divorce and has regularly been described in the press as 'the divorce capital of the world'. Whereas before the poorer spouse was limited to receiving sufficient money to satisfy their reasonable requirements these recent cases have established the principle that property should be shared equally unless there are good reasons to depart from this. At the same time English courts also tend to be more generous in the level and duration for which spousal support will be payable. Of particular importance is that unlike in many countries under English divorce law the 'sharing' principle applies to all property which may include trust interests. However ...

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