Posted by John North, Partner
Will Brexit affect divorce settlements?
Has triggering Article 50 opened a proverbial Pandora’s Box for divorce settlements? Paul Mansfield certainly thinks so and is subsequently challenging a £12.2 million divorce award to his ex-wife. He claims the that pre-EU referendum judgement took no account of the likely damage to his business caused by Brexit.
So will judges take Brexit into account when ruling on divorce settlements?
If the British economy were to suffer after the UK implements Brexit, the knock-on effect will need to be taken into account by the courts in divorce settlements. In view of the fact the British pound was at its lowest rate in more than three decades when the vote to leave was announced, financial sectors are projecting further changes to market once the process to leave is complete.
We believe that such a scenario may open the floodgates for high net worth individuals who trade internationally, to seek reviews of their divorce settlements pre-dating the EU referendum.
It will take a few years post Brexit to see how the market reacts and witness its influence on the development of case law. In the current socio-economic climate one thing is for certain however, no one can predict the consequences of Brexit.
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