countries, and made reference to problems
arising from those. When such relationships
fall apart, it is important to pay particular
attention to the division of assets and the
organising of finances.
Not only may it be possible to issue divorce
proceedings in more than one country or
jurisdiction, one must consider which jurisdiction is competent to deal with the assets.
Choosing the best place to issue is an important decision about which a divorce lawyer can
help, but with regard to dealing with foreign
assets, overseas property laws will invariably
apply, and few of them are likely to possess the
required specialist knowledge of overseas laws.
Regulations vary considerably from country to
country and conflicts can arise owing to the
lack of coherence and uniform regulations. A
little prior knowledge on this topic could be
useful should such circumstances arise, and
a divorce lawyer can seek specialist advice or
point clients in the right direction to obtain
it. Many assume a foreign lawyer is the only
source of information but there are a select
number in the UK with the relevant experience
to assist, and with local overseas’ contacts to
consult, should further advice or assistance in
the jurisdiction be required.
Consider assets at the outset
As legal professionals specialising in the overseas property market, we continue to see an
increasing number of separations or divorces
amongst UK couples with assets situated
outside England and Wales. Sadly, dividing
such property can complicate and prolong
an already difficult situation and result in
increased costs. By considering their overseas
assets at the outset, the process can be simplified, speeded up and dealt with more costeffectively. Unfortunately, as we know from
experience, overseas property legal experts are
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often only consulted by clients or their solicitors once difficulties or delays have arisen or a
situation has reached an impasse.
An overseas home could well be one of the
most valuable assets in a divorce case and
may need to be sold in order to meet the dayto-day needs of the parties and their families.
The transfer of such a foreign property could
also be one of the more complicated and
protracted aspects of a divorce, so it is prudent
to commence negotiat ions regarding this as
early as possible.
Obtaining suitable advice from an international
tax perspective is certainly advisable, as the
tax consequences of a property transfer and/
or registration of a cross-border divorce are
often very high. Depending on the country,
capital gains tax may be due or a transfer tax
payable by the party receiving the property. For
example, in France, this transfer tax is currently
2.5% of the total value of the property on top of
which notaire’s fees in the region of 1.5%
are payable!
For UK divorces involving overseas property,
it’s essential to bear in mind that the effect of
the legal judgment made in the UK has to be
understood and respected in the jurisdiction
where the property in question is located. In
most cases, the overseas formalities would
require a deed to be drawn up (usually by
a local form of notary) and the change of
ownership would have to be registered
at the local land registry. The court order
and financial agreements must be entirely
acceptable to the foreign jurisdiction. It may
be necessary to obtain a local jurisdiction court
order recognising the enforceability of the
original court order.
For example, where a French house is part
of the family assets, it is imperative that the
settlement approved by the court give clear
directions as to what should happen to the
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