The part owners of Laura Ashley, the well known British retail company, are to divorce after 43 years of marriage. This case is an interesting example of an increasing trend in a number of foreign spouses trying or choosing to have their divorce heard in the English courts as opposed to the courts of their home country.
The Husband in this case is domiciled in Malaysia and it is understood that he has an estimated wealth of £400m. The Wife commenced divorce proceedings in England last February. The Husband disputed that England had jurisdiction given that under Malaysian law, a Wife’s domicile follows that of her Husband. The same is not true under English Law but is common in many other countries. The Husband argued that his home country had jurisdiction to hear the case on the basis that the couple married in Malaysia and that the laws in that country provide that the Wife’s domicile is effectively that of her Husband.
The Husband attempted to have the case heard in Kuala Lumpur, where it is believe his Wife would receive less. At the first hearing, his argument was accepted. However, the Malaysian appeal court overturned that decision and ruled that the case should be dealt with in the UK.
The Wife subsequently made an application to issue a fresh divorce petition in England, and also stated there was a need for the question of her domicile to be addressed as a separate issue. The English courts accepted the Wife’s application and she is now preparing for a 10 day hearing in London in which it will be decided whether England has jurisdiction to hear the divorce case.
If the Wife is successful and the English courts rule they have the appropriate jurisdiction, it is possible that the Wife will achieve a much higher award than she would in Malaysia. Under English law, the principle of equal division of assets is the starting point in any marriage of this length. The Husband is likely to rely on an “exceptional contribution” argument in an attempt to depart from the principle of equality.
In cases where the overseas domicile of one party is questionable, there is an increasing number of cases where that party is seeking to have their divorce dealt with under English law, where the awards can be more generous and favourable.
We have solicitors in the family team in at Stephens Scown who deal specifically with divorces with an international element. Please contact us if you would like to discuss this further.