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Why Jurisdiction Matters in Divorce: The Financial Implications of Divorcing in the UK or Abroad

Written by Marion

September 22, 2025

Why Jurisdiction Matters in Divorce

When it comes to divorce, the where can be just as important as the why. For couples with international connections, dual nationalities, overseas property, or global financial interests, the issue of jurisdiction can be a critical, strategic decision with far-reaching financial consequences.

Recent figures from the Office for National Statistics show that in 2023, over 102,000 divorces and civil partnership dissolutions took place in England and Wales. Of those, around 40,000 involved court-handled financial settlements. The remaining cases were resolved informally, through alternative dispute resolution, or were, more worryingly, left unresolved entirely.

As the courts become increasingly burdened, many couples are turning to non-court dispute resolution (NCDR) methods, such as mediation and arbitration. These often offer greater flexibility, lower costs, and faster outcomes. But while NCDR can be effective for many domestic cases, it isn’t always suitable—particularly when international elements are involved, or when there’s a financial imbalance between spouses. In such cases, early, specialist legal advice is essential—especially when it comes to choosing the right jurisdiction.

Why Jurisdiction Matters

Jurisdiction isn’t just a procedural issue—it can shape the entire financial outcome of your divorce. Different countries apply very different rules on how wealth is divided, what counts as marital property, and whether (and for how long) spousal maintenance is awarded. When spouses have connections to more than one country, the jurisdiction that handles the case may be decided simply by who files first. That means acting promptly isn’t just advisable—it can be financially decisive.

Capital Division: England vs. Abroad

In England and Wales, courts are well-known for their generous and wide-ranging powers when dividing matrimonial assets, particularly in high-net-worth cases. The law supports the principle of equal sharing of assets acquired during the marriage—including those that have been “matrimonialised,” or blended into joint life, even if they were initially owned by one party.

Take, for example, a couple who met in 2002, lived together from 2004, married in 2023, and divorced in 2024. An English court might treat this as a 20-year marriage, not just a one-year one, recognising the entire period of cohabitation as relevant to the financial settlement. This reflects how modern relationships work, where long-term cohabitation before marriage is increasingly common.

Contrast this with California, where only the assets accrued during the legal marriage (2023–2024 in the above example) would be considered marital property. Cohabitation before marriage holds no weight in property division.

Pensions provide another striking difference. In England and Wales, courts can issue pension sharing orders to divide retirement savings. However, this power only extends to pensions held within the UK. If your pension is held abroad, the English courts may not be able to touch it, even if it’s your most valuable asset.

Spousal Maintenance: A World of Difference

Jurisdiction also affects claims for spousal maintenance (alimony). In England and Wales, maintenance is discretionary and can be long-term or even lifelong, depending on the needs of the financially weaker spouse and the standard of living during the marriage.

This flexible approach was underlined in Waggott v Waggott [2018], which confirmed the court’s wide discretion to award ongoing support. Judges consider factors like earning capacity, career sacrifices made for family, and whether the payer can afford to bridge any financial gap.

In stark contrast, Scotland typically limits spousal maintenance to just three years, and many European countries, such as Sweden, Norway, and Luxembourg, view maintenance as a short-term solution only. The emphasis is on self-sufficiency, not long-term support.

London: Still the Divorce Capital of the World?

London continues to be dubbed the divorce capital of the world, not just for its high-profile cases, but because of the English courts’ willingness to recognise the contributions of both partners, financial or otherwise. The system often provides significant protection for the financially weaker spouse, particularly where there has been a long period of cohabitation, unpaid family work, or career sacrifices.

This makes England and Wales a preferred jurisdiction for many spouses seeking a fair share of the wealth accumulated over the course of a relationship, especially if their partner was the primary breadwinner or holds substantial assets.

International divorces are often complicated, so selecting the right jurisdiction is one of the most critical strategic decisions you can make. The financial rules, court powers, and long-term implications can differ dramatically from one country to the next.

If you or your spouse have links to more than one country, by citizenship, residence, or asset ownership, it’s crucial to seek specialist legal advice as early as possible. Whether you’re looking to protect overseas assets, secure fair maintenance, or ensure pension provision, the jurisdiction that hears your case could define your financial future.

In many cases, it’s simply a matter of first to file, wins. So don’t wait for your spouse to make the first move, get advice early and protect your position.

 

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