Family Court Deliberates on Business Valuation, Trusts, and Asset Division in HO v TL Divorce Case

Citation: [2023] EWFC 215
Judgment on


In the matter of HO v TL ([2023] EWFC 215), the Family Court examined a financial dispute between a separated husband (H) and wife (W), following a marriage dissolution. This case offers insight into the application of various legal principles, including the demarcation of marital and non-marital assets, assessment of business valuation in divorce proceedings, and the interpretation of trusts in the context of matrimonial finance. Mr. Justice Peel presided over the case and delivered a judgment that carefully navigated through the complexities presented by the involvement of family businesses, trusts, and assets across multiple jurisdictions.

Key Facts

The parties, denoted as H (husband) and W (wife), were involved in a 17-year marriage, during which they co-founded a hotel business, enjoyed an international lifestyle, and had three children. Post-separation, W relocated to London, and litigation ensued over the division of assets and provision for W’s future needs. H proposed retaining the family business, offering W a sum that varied during the proceedings, whereas W sought amounts that she later adjusted in her statement. The business was housed in a trust, of which both H and W were beneficiaries, and H also had interests in other family trusts.

Valuation of Matrimonial Assets

In assessing the value of the family business, the judgment relied on principles stipulated in landmark cases such as Charman v Charman ([2007] EWCA Civ 503) and Versteegh v Versteegh ([2018] EWCA Civ 1050). It is the court’s duty to determine the business’s valuation, considering its volatility, marketability, and associated risks. Valuations must be grounded in realism, acknowledging that theoretical figures might not reflect the asset’s true economic value or market potential.

Sharing Principle

The court applied the sharing principle, where any asset accrued during the marriage would generally warrant equal division between the parties. However, as in Hart v Hart ([2018] 1 FLR 1283), the court must distinguish between marital and non-marital property on a case-by-case basis, which influences how assets are allocated.

Trusts and Resources

The judgment expounded on the treatment of trusts in matrimonial finance, particularly applying the test from Charman v Charman ([2005] EWCA Civ 1606) on whether trust capital would likely be advanceable in the foreseeable future. Judicious encouragement towards trustees could be utilized, as seen in Thomas v Thomas ([1995] 2 FLR 668), without exerting undue pressure.

Needs Assessment

When determining W’s financial needs, the court followed principles from WC v HC ([2022] EWFC 22) and Miller/McFarlane emphasizing factors such as the standard of living during the marriage, W’s age, and her contribution to family life. The court must balance fairness with financial realities post-separation.


The court awarded W a lump sum divorced into two parts that accounted for housing and capitalised maintenance needs, reducing her annual income requirement post-age 65. The judge ensured that H would meet these payments through his assets, including business sales and accessing trust funds. Orders were made for property transfers, interim maintenance, child support, and insurance provisions, with an adjourned application regarding the nuptial settlement trust pending full payment.


Mr. Justice Peel’s decision in HO v TL encapsulates a judicious approach to financial disputes in divorce, particularly when dealing with complex assets such as business and trusts. The judgment reinforces that while the marital standard of living informs spousal support, it is not absolute, and a fair outcome must consider the evolution of financial circumstances upon marriage breakdown. Additionally, it affirms the court’s discretion in engaging with trust instruments and the practical realities surrounding them in matrimonial finance. This case exemplifies the nuanced considerations necessary for a just resolution that respects both parties’ past contributions and future needs while acknowledging the substantial non-marital resources introduced by one party.

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