Expat Legal Advice

Those facing a relationship breakdown are increasingly finding that their situation involves an international element. International divorce can be complicated as the financial outcomes of a divorce can vary significantly from country to country. Even if your divorce goes ahead in England and Wales, you may have to deal with different jurisdictions to deal with overseas assets.

You should seek advice right at the outset to find out whether you are eligible to divorce in England and Wales. In most cases, once a divorce has been commenced in one jurisdiction, the decisions regarding the finances will take place there too. This is significant if you and your spouse have ties to other countries because the laws of another country might be more advantageous or disadvantageous to you.

The consequences of divorcing in the UK or abroad can be significant and it is therefore important that you take advice as early as possible. 

With increasing globalisation, more families have international connections, leading to complex scenarios when relationships break down. UK courts frequently deal with issues like cross-border divorces, child custody disputes involving children residing abroad, and the recognition of foreign marriage agreements. Determining the appropriate jurisdiction, navigating different legal systems, and ensuring the welfare of children add layers of complexity to these cases.

When an individual dies, their assets (e.g., properties, bank accounts, investments, stocks and shares, valuable personal possessions) and their liabilities (e.g., credit cards, utility bills, personal loans, mortgages, Income Tax) are calculated as at the date they died. Altogether, the sum of these assets and liabilities is known as that individual’s ‘Estate’.

If the individual had assets which were not in the UK at their death, such as overseas investments, bank accounts or a holiday home, their Estate would be a ‘cross-border’ Estate, as their assets are not only based within the UK borders.

It is therefore important to consider how such an Estate should be dealt with, as there are more administrative points to consider than an Estate comprising solely assets within England and Wales.

Inheriting money from abroad can involve two main considerations: domicile and inheritance tax. While the money itself usually isn’t subject to UK inheritance tax if the deceased was never domiciled in the UK, your own domicile status matters. If you’re domiciled in the UK, the total value of your worldwide estate, including the inherited money, is assessed for potential inheritance tax. 

Residents who are not domiciled in the UK are only liable for inheritance tax on assets physically located within the UK. However, regardless of domicile, any income generated by the inherited money, such as interest, might be subject to UK income tax. It’s crucial to seek legal advice specific to your individual circumstances for accurate guidance on potential tax implications.

Our specialists assist individuals seeking to enter the UK for employment, study, and family purposes, on both a short-term and long-term basis. We assist individuals throughout the visa application process, from initial consultations advising on visa options available to the individual, to preparing and submitting visa applications and dealing with the Home Office to assist with any complications that may arise during the application process.

With a deep understanding of the complexities that arise when conducting business across borders, we are your trusted advisors for navigating the intricate legal landscapes of diverse jurisdictions.

Whether you’re an established multinational corporation, a budding international business or innovative entrepreneur, at Herrington Carmichael we have specialist international business lawyers who can be your trusted legal partner as you navigate the intricate world of international business.