A rather interesting and thought provoking case has appeared before the Court of Appeal recently in which the question of whether a husband, with sole ownership of a limited company, was entitled to properties held by his company and therefore whether those properties formed part of the "matrimonial assets."
The details of the case are perfectly summarised in the below article but it is the decision of the Court of Appeal that has provoked discussion and divided opinion. It must be noted however that the decision of the Court of Appeal may yet be moot as the wife has been granted permission to appeal to the Supreme Court.
Last month, the Court of Appeal delivered it's controversial judgment in the case of Petrodel Resources Ltd & Ors v Prest & Ors. The decision of the Court of Appeal means that in financial proceedings arising out of divorce, the starting point is that family court judges may not make orders against company-held property. The practical effect of the decision is that if a spouse ties up their assets within the structure of a legitimate limited company, they may avoid their financial obligations on divorce.