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Tax mitigation uncertainty for financial settlements
Connie Atkinson
On top of this, the decision to divorce is lifechanging for both the couple and the family around them, particularly when there are family businesses, estates and trust structures in place.
Fractures can happen quickly and become entrenched. Keeping lines of communication open is crucial.
While mental capacity issues can arise at any age, it is inevitably at the forefront of our minds when mediating or advising older couples, often referred to as "grey divorces", a phrase I personally feel risks minimising a decision, albeit later in life, to start afresh. We continue to see older divorcees prioritising their own happiness and financial independence; but this can cause concerns amongst adult children, particularly if new partners are on the scene or one parent is unwell.
Where concerns are raised about capacity, family mediation can be a flexible and positive space for discussions about how an individual is, what support they would benefit from and how capacity assessments can be managed.
Degenerative diseases and diagnoses during the divorce can risk a settlement being delayed or unwound later on unless handled carefully. Simply being unwell or having a mental illness of course doesn't mean one lacks mental capacity. People must be treated as if they have capacity unless there is evidence otherwise. Capacity can fluctuate and is decision specific. Crucially, people must be supported to make their own decisions where possible. While they have capacity, it is also vital to ensure people have made Lasting Powers of Attorney (LPAs) which appoint a trusted person to make decisions on their behalf if/when they are no longer able to do so themselves.
Building a supportive team around the divorcees and taking a collaborative, problem-solving approach is essential. Mediation can provide a carefully managed forum for sensitive conversations, to ensure that all parties are able to listen and feel heard. The environment can be carefully managed so that each person has the right support in place to engage fully in discussions. Practical considerations about the location, time, lighting, furniture and refreshments can be important, alongside the fundamentals of who attends and who is in which room.
Mediation can involve all relevant parties, including family members, trustees and business partners, provided the parties and mediator agree and everyone signs up to the terms of the mediation. Crucially, mediation privilege and confidentiality can give everyone the space to speak frankly and seek compromise, without the worry that any proposals or suggestions could be referred to in solicitors correspondence or court proceedings.
Choosing mediation from the outset can be vital to preserving relationships and minimising the emotional and financial cost of divorce to the family as a whole.
If you are affected by any of the issues covered in this blog or if you have any questions, please contact a member of our Court of Protection & Deputyship or Family & Divorce teams, who have longstanding experience in supporting clients in cases involving capacity, matrimonial proceedings and wealth protection.
Lauren is a Partner in the family team with experience of all types of private family law work, relating to both complex financial arrangements and children issues. Lauren is also a mediator and helps clients to work through the practical and legal issues arising from separation and divorce.
Historically, a non domiciled divorcing couple have been able to mitigate their UK tax liabilities when making a lump sum payment to the other party to the divorce. Following guidance from HMRC in 2025, however, it seems that this particular tax mitigation strategy is no longer available and advice needs to be taken in respect of each party’s tax status, the timing and mechanism of payments and the likely tax liability.
It may feel like an administrative burden to keep personal affairs in order, be that your Will, financial or estate planning. That burden can be even greater when the rules of two (or more) countries are relevant. We regularly help French nationals living in the UK to take steps to plan their personal affairs, given that the legal and administrative rules of two countries will be relevant to their legal documents.
Contrary to what some aspects of the British media may lead you to believe, life in the Middle East remains a very attractive prospect for many. Britons continue to relocate there and, according to a recent report in the Times, a large proportion of those who left the UAE recently are returning to the place they now call home.
It has been just over a decade since the offence of controlling or coercive behaviour came into force with the Serious Crime Act 2015. With this offence, the criminal law formally recognised that prolonged emotional, psychological and financial abuse can be just as damaging to a victim as physical abuse. The impact of such behaviour has also been recognised by the family courts, particularly in the context of children and applications for non-molestation and occupation orders.
For a number of years, research has shown that children and young people want information about what is happening to their family when their parents decide to separate. Many want the opportunity to be heard when decisions are being made about them.
Family dynamics are complex at the best of times. When one family member is unwell, stress and worry can quickly lead to friction and mistrust among siblings and parents alike.
Hi, I’m Olivia, a family lawyer and mediator at Kingsley Napley LLP working alongside four other brilliant mediators in our team. In this short blog, I set out what you can expect from your first meeting with a family mediator.
For separated or divorced families, Christmas time is often an emotionally charged time of year, fraught with practical challenges as parents try to agree contact time and arrangements for Christmas events. Claire Wood shares some tips on how best to prepare for the issues which may arise at Christmas.
According to the PDSA’s 2024 report on pet populations, over 51% of UK adults currently own a pet. To many their pets are not “just pets”, but beloved family members and a core part of their family unit. If something unforeseen should happen in the future, most would want the best for their pets. Often, however, when an unplanned major live event happens, such as a divorce or the death of a pet owner, thought has not been given to what should happen to the pets.
It is 16 May 2022. Sotherby’s, New York. A collection is being auctioned, achieving the highest total from a single sale in the auction house’s 277-year history. $922.2 million. The culmination of a bitter divorce between Harry Macklowe (property mogul) and Linda Macklowe (prominent art curator).
When a party sits down to prepare their financial disclosure on divorce, thoughts can turn to the valuable or sentimental items which may have been gifted between spouses or received from family members during the marriage. The idea of having to share or relinquish such items to a soon-to-be-ex-spouse can leave some people clutching their pearls (quite literally), but is this ever actually required in financial proceedings on divorce?
Assets are typically placed in a trust for legitimate purposes, such as safeguarding wealth for future generations. However, arguments that a trust is in fact a “sham” created to hide the true ownership of assets often arise in the context of divorce litigation, bankruptcy/insolvency where a creditor seeks to argue that a trust is a pretence seeking to shield assets from creditors, or in estate disputes, where beneficiaries look to bring assets of the deceased back into an estate.
It is National Fertility Awareness Week and, this year, the campaign is “Every Voice, Every Journey”.
Francophone couples living in England or those who own assets here may be surprised at the differences between a standard English prenuptial agreement and the ‘contrats de mariage’ which are so common across continental Europe.
Family relationships involving international couples can be complex and the need for cross-border planning and an understanding of other jurisdictions is critical for family lawyers working in London. Claire Wood helps clients to understand some of the differences in approach across the channel.
Connie Atkinson was published in the October 2022 edition of ThoughtLeaders4 HNW Divorce magazine discussing the rise of cryptoassets in financial remedies.
The Court of Appeal recently handed down judgment in Helliwell v Entwistle [2025] EWCA Civ 1055, examining the importance of disclosure when entering into a pre-nuptial agreement.
On 30 July 2025, Mr Justice Peel handed down a judgment in the case of BC v BC [2025] EWHC 2016 (Fam), confirming the “sanctity of confidentiality” about Financial Dispute Resolution (‘FDR’) and private FDR (‘pFDR’) hearings.
On 2 July 2025 the Supreme Court handed down its long-awaited judgment in the case of Standish v Standish. Practitioners have been particularly interested to see if, and how, the Court would develop the judicially created principles of ‘needs’, ‘compensation’, and ‘sharing’ which apply to the division of finances on divorce. In particular, what would the Court say in relation to ‘the sharing principle’: should all assets be shared, or only those generated by the parties’ common endeavour during their marriage?
In this blog we consider whether a pre-nuptial agreement is a good option to help protect the estates of vulnerable individuals in the event that their marriage should come to an end.
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Connie Atkinson
Stacey Nevin
Charlotte Daintith
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