Key Facts
- •Application by SS (wife) for financial remedy order against IS (husband), both Russian nationals.
- •17-year marriage with two children.
- •Wife hasn't worked since moving to London; husband is a successful entrepreneur.
- •Husband's assets largely held in Jersey and Panamanian trusts; only readily available asset is £2m equity in former matrimonial home.
- •Complex litigation history, including issues with disclosure.
- •Significant assets in husband's restaurant businesses, valued at approximately £9 million.
- •Husband's business partners (P brothers) made an offer to purchase husband's shares, creating complexities in valuation.
- •Disputes over the classification of certain assets as matrimonial or non-matrimonial.
Legal Principles
Variation of nuptial settlements
Matrimonial Causes Act 1973, s.24(1)(c)
Financial provision on divorce considering various factors including needs, contributions, and resources
Matrimonial Causes Act 1973, s.25
Bars on extending periodical payments
Matrimonial Causes Act 1973, s.28(1A)
Outcomes
Wife retains former matrimonial home, proceeds from Cyprus property, and Russian property.
Reflects wife's needs and contribution to the marriage.
Husband pays wife a lump sum of £1,721,456 plus a 10% share of future sale proceeds of certain shares within 5 years.
Aims for equal division of matrimonial assets, considering complexities of offshore trusts and potential future value increase. Avoids lengthy and expensive offshore litigation.
Husband pays wife periodical payments of £60,000 per annum for 10 years (non-extendable).
Balances wife's needs with husband's income capacity and potential for future earnings from his businesses.
Husband pays children’s education costs and periodical payments for the daughter.
Recognises husband's responsibility for children's upbringing and education.
Capital clean break.
Both parties agree a clean break is desirable.
Husband provides a tax indemnity for historic trust distributions.
Addresses tax implications arising from offshore trust structures.
Variation of the Fine Trust to transfer 50% of shares in POHL and GCG to a separate trust for the wife.
Provides wife with a secure share of matrimonial assets, while balancing potential future growth of the businesses. Avoids lengthy legal battles in Jersey.