The American wife of a British financier has been awarded more than £337m in what legal experts say is the biggest divorce settlement ever seen in the UK courts.
Here, WHN’s head of family law and partner, David Connor summarises the case and explains why Britain is fast becoming the divorce capital of the world.
Background on the case
Sir Chris Hohn set up the Children’s Investment Fund with his wife in 2002. It has donated more than £1 billion to charity. When he and his wife separated in 2012, the couple fought over assets said to be worth more than £700m.
The wife, Mrs Cooper-Hohn, 49, sought half the matrimonial assets as she believed she played a key role in the growth of his wealth. However Sir Chris, 48, offered a quarter, arguing that he had made special contributions to their wealth throughout their marriage.
The reported award makes Mrs Cooper-Hohn even wealthier than the Queen who, at 285 in the Sunday Times Rich List, has a personal fortune of £330 million.
Why is Britain becoming divorce capital?
It seems Britain has become a mecca for unhappy, high-profile spouses seeking divorce. In Britain judges are far more likely to make an informed opinion looking at what constitutes matrimonial assets, rather than acting in favour of the wealthier party.
Britain’s highest court also ruled that millionaires cannot use complex business structures to shield wealth from spouses in a landmark ruling against an oil tycoon. And in 2011, a divorce hearing involving a German heiress named Katrin Radmacher resulted in a Supreme Court ruling that foreign pre-nups can be taken into account on a case-by-case basis.
The bespoke handling of such divorce cases, means spouces of the mega rich are looking for divorce cases to be heard in the UK as they have a chance of a better settlement.
Why is this important?
It is clear that Sir Chris argued a contribution in the form of vast sums of money earned but the judge took other special circumstances into account such as direction and involvement from his wife. This may be reflected in divorces cases locally with business owners being challenged by partners who have made parenting or supportive matrimonial contributions.
The courts have looked at this argument in the past and case law is not entirely clear as to when it should be available as an argument.
In the Hohn case, the media had been given access to most of the facts for the first time, meaning the nature of the dispute are now public. This could result in other high profile cases being exposed, along with the arguments of each party.
All separating couples should seek advice at an early stage and often agree on a reasonable settlement to prevent cases being aired in public.
You don’t have to face the complexities of divorce and separation alone, our experts are here to help.
- David McCraith at our Accrington office on 01254 236221
- Tanya Magell and Karen Reid at our Blackburn office on 01254 272640
- Kate Allsop, Emma Pike and Mark Taylor at our Bury office on 0161 761 4611
- Louise Daniel at our Haslingden office on 01706 213356
- Carla Williams and David Connor at our Rawtenstall office on 01706 225621
