A landmark family decision is likely to encourage the protection of family wealth through corporate structures. Robert Worthing, Partner and Head of our Family Team looks at this in further detail.
In the recent Court of Appeal decision of Petrodel v Prest, it was held that it is not possible for the Court to transfer company held assets upon divorce merely in the interests of justice. Similarly, the Court cannot attribute assets of a company to a shareholding spouse in the absence of relevant impropriety by that spouse.
Mrs Prest is apparently seeking an appeal to the Supreme Court. Pending that appeal, the Court will not simply be able to look to the value of a company shareholding without reference to this majority Court of Appeal decision. If the decision is upheld within the Supreme Court, it is likely that the focus of capital claims in the family division will move away from the family company to the realisable assets in the case.
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