Brexit’s likely impact on the popularity of England’s family court system for cross-border and international divorce cases has reportedly led to a surge in such applications and the resulting divorce cases being heard in the run-up to the Brexit transition.
The end of the year will bring an end to the UK’s participation in a long-standing EU agreement under which cross-border divorce rulings made in one EU state are automatically recognised in another; an agreement which has seen London earn the reputation as the so-called “divorce capital of the world”.
This is explained by the perception that the divorcing wives, children and dependents of high net worth individuals are more likely to receive favourable financial settlements and child support orders in the UK than they are in other jurisdictions.
The Brexit divorce effect
A number of divorce lawyers have expressed concerns that the advent of 2021, and the effect of Brexit, could see divorcing couples who would otherwise find clarity and resolution in London’s courts instead becoming embroiled in expensive and protracted international litigation not simply concerning the outcome of their divorce but also the very jurisdiction in which their case will be heard.
As such, there have been a number of urgent calls for divorcing couples to begin divorce financial settlement and child arrangement proceedings before the beginning of the Brexit transition period.
Given the urgent need for divorcing couples to act, there are worries that the courts could become overwhelmed with proceedings; a potentially difficult situation for Family Courts that are already struggling to adapt to the operational challenges, backlogs and technical difficulties presented by the Covid-19 global health pandemic.
There are numerous and notable recent examples of high-profile and high-value divorce settlements being heard in London. These include:
- Al-Baker v Al-Baker: This 2016 international divorce case was £61 million awarded to Sarah Al-Baker following her divorce from Abdul Amir Al-Baker. The case was notable for the husband’s persistent non-compliance and non-disclosure.
- Chai v Peng: This 2017 divorce financial settlement case saw former Miss Malaysia Pauline Chai receive a £64 million payout from her ex-husband Khoo Kay Peng. Dr Khoo had previously tried to limit the settlement to just £9 million and had tried to have the case heard in Thailand rather than London.
- Estrada v Juffali: This 2016 case saw a £75 million divorce settlement awarded to former model Christina Estrada following her divorce from Saudi billionaire Walid Juffali.
- Akhmedova v Akhmedov: This 2019 case saw a record £453 million payout awarded to the former wife of Russian oligarch Farkhad Akhmedov.
An uncertain future for English and Welsh divorce courts
There are real concerns about the future of cross-border and international divorce cases following Brexit. As it stands, there are still 14 European countries that have not joined the Hague Convention on the Recognition of Divorces and Legal Separations. Unless the countries sign, UK divorce rulings will not be recognised in their jurisdictions. However, it is up to the UK government to provide clarity in this regard as we cannot solely rely on the actions of individual European states.
