Navigating international divorce for HNW clients

For high-net-worth clients, proceedings can be particularly lengthy and stressful. There are usually considerable assets, property, finances to take into account, not to mention those couples who share a business, or have children together. 

There are many celebrity and HNW divorce examples to draw on, not least the most recent announcement of Sophie Turner and Joe Jonas’ split. What the Jonas/Turner divorce highlights primarily is the rise in, and specific challenges of, international divorces, which are more common among non-celebrities than may be thought.

Jonas and Turner's separation has been a headline topic since Jonas filed for divorce in Florida back in September.

Latest updates report that Jonas has now dismissed his Miami divorce case after the couple have gone through a short period of mediation, and that the ex-couple have resolved to process their divorce in private, presumably meaning (although the status remains unknown) that Turner has, or will, dismiss her divorce claim in England that she reportedly filed not long after Jonas submitted his in the US. 

One of the most contentious areas of any divorce is children.

However, the process leading up to this has been far from smooth and has shone a spotlight on the difficulties associated with an international and multi-jurisdictional divorce. 

International divorce is the term for when a separating couple have valid connections to more than one country, for example, they have emigrated from the UK, or the couple are of different nationalities. In many cases, one spouse may be living in a different country for work or family reasons. 

Where a divorce is processed can affect the outcome as divorce laws vary from country to country. The forum for the divorce then becomes the first step and must be decided before any other matter can progress. 

Prenup protection

The financial aspects of Jonas/Turner divorce will have been agreed in the watertight prenuptial agreement the couple signed ahead of their marriage in May 2019. 

Prenups, while not legally binding in England and Wales, as they are in many US states, lay out the division of finances and assets should the marriage break down.

If properly drawn up by a lawyer, they can hold significant weight in court, so should not be entered into if the couple do not intend to be bound by the terms. 

The division of assets in an international divorce will be different depending on the country in which the divorce is being processed. A financial settlement is designed to fairly resolve a divorcing couple’s assets and ensure financial security for both parties going forward.

The issue with an international divorce is that the assets are of course split across different countries, which then means that the relevant legal jurisdictions have to be taken into account.

It is unlikely that the Courts of England and Wales will have the power to make a determination over an asset that is based in the US for example, and of course the same applies to a US court making a determination over an asset based in England and Wales.