Globalisation is fast paced, and for families going through breakdown, can cause obstacles like conflicting court orders, uncertainty and prolonged disputes.
How does globalisation affect family life?
In a world where people and money move more smoothly than they ever have done before, families are increasingly looking towards the rest of the world for opportunities. This could be for any number of reasons, including:
- Better tax options
- Property investments
- Business expansion
- Lifestyle changes
- Education
- Cultural enrichment
Emigration from the UK is still high, despite the complications from Brexit. The number of families and individuals moving further afield is also growing, especially to tax-friendly countries like the Gulf States.
And it’s not just individuals. Families are moving as groups to other locations, often flitting between countries. There are also more people interested in building financial networks abroad, even if they stay put in one country. More families are becoming internationally mobile, working, studying and living abroad. Globalisation is easing this process as there is more connectivity between countries across the world.
Is family law globalised?
Family law is domestic in nature, meaning that the structures that govern the laws, for example how finances are divided on divorce, are unique to the specific country. Some countries share similarities in the way their systems work, but family law is not ‘globalised’ in the same way trade, economics, and people are.
For example, in England, full and frank financial disclosure is required in financial negotiations.
This means before you start negotiating the split of your money, you should provide each other and your solicitors with a full overview of your money, property, debts, loans, pensions and all other assets in both your name and joint names.
This is usually done through completing the Form E and exchanging it with your ex for them and their solicitor to review, so that you each have the opportunity to view the assets and resources of the other at the same time. Once everyone has a clear picture of your overall financial landscape, you can properly explore how best to divide everything up.
Download our in-depth guide to filling in a Form E
Even if you and your ex elect not to complete Forms E (if you are settling their finances without issuing contested financial remedy proceedings), the court still expect you to have a full understanding of the finances of the other before committing to a financial settlement, and the court will require a summary of those finances before making a decision on whether to approve any agreed financial settlement terms.
However, in some other countries, there is not a legal obligation to share your financial details with your ex in divorce. Some countries have a fixed formula on division.
Although laws themselves are not necessarily ‘globalised’ there is more of an opportunity for divorcing couples to choose where their divorce application is heard, and this choice is often based on where is perceived to give the best outcome. This often results in divorce tourism. Forum shopping for the best outcome is generally frowned upon, and parties cannot simply choose a jurisdiction where the laws are most favourable to them; most jurisdictions require you to be sufficiently closely connected to that country.
What are the obstacles for internationally mobile couples?
Divorce is one of the hardest life events someone can experience. On the Holmes-Rahe Life Stress Inventory, which rates life events and how stressful they are, divorce comes number 2, only preceded by the death of a spouse.
Senior Associate in our London office, Martha Holland, explains how things can be more complex if you’re going through an international divorce:
“In a fast-paced world where people are moving across borders, owning property and transferring wealth structures, divorce can have significant consequences. This is why it’s important to have the right advice at the right time. Seeking expert legal advice from a family lawyer who specialises in international divorce is hugely important. You might also need to contact a financial adviser to ensure your wealth is protected and you have the right planning in place.”
Deciding where to divorce
Divorcing couples have more choice than ever before on where they can get divorced, providing they meet the specific thresholds required by the jurisdiction.
In England and Wales, you need to have a sufficient connection to the UK to be able to apply for a divorce here. This is established by your residency status e.g. your habitual residence or country of domicile.
In a more globalised world, the outcome of a divorce case often depends more on where it is heard than necessarily the details of the case. Your outcome could be different if you divorce in England than if you decided to pursue the divorce in the UAE, for example, because of the systems and structures in place.
Financial aspects
Internationally mobile families often have different assets positioned in different countries. You might have property in Spain, business interests in the US or Dubai, and cash assets held in your home country and potentially abroad as well, for example in a more tax-efficient country.
This can make the process of financial disclosure a lengthy and complicated one as you will need to get the full information of every asset you have, whether it is held in your name, your ex-spouse’s name, or both your names.
There is also a risk that an order made in one country regarding finances may be difficult or even impossible to enforce in the relevant country. It’s important that you seek legal and financial advice on the best approach to international assets.
Child arrangements
Divorce arrangements for children can be complicated and emotionally charged. In all the discussions it is important that your child’s best interests are kept at the centre. However, parents can often disagree on what is best for their children, which can be more complicated when multiple countries are involved.
You might live in one country, for example England, you may have family in Australia, and your ex-partner could have family in a third country. This means a lot of decisions about child arrangements life:
- Where the children will live
- Where their school will be
- How often they will see each parent
- Involvement with extended families
It’s really important to be aware of the rules around travelling with your children after divorce and ensuring any trips, even to see family, are communicated with all those with parental responsibility and permission is granted, preferably in writing, if you’re going abroad. Rules can differ slightly if there is child arrangement order in place which states with whom the children live with (a “lives with” order).
Senior Associate Martha Holland answers the common question ‘can I take my child on holiday abroad after divorce?’
How does globalisation affect family law?
Globalisation and the fluidity of movement between countries and cultures is a great thing in lots of ways.
There has been good progress to make sure that international families can get the right advice – especially with specialist family lawyers who support clients daily with international issues. There is more communication between lawyers across jurisdictions, meaning better support for divorcing couples. However, family law is still relatively insular so it’s important that you get the right advice for you.
Useful links
International divorce: what happens when one of you lives abroad?
