Divorce with Overseas Assets: What Happens to Property, Pensions and Investments Abroad?

Divorce can become more complicated when a couple’s finances extend beyond one country. You may live in London but own property in Germany, have an overseas pension, hold investments abroad or have business interests in several jurisdictions.

For internationally mobile couples, this is increasingly common. However, assets do not necessarily fall outside consideration simply because they are situated abroad.

If you are considering an international divorce and you or your spouse have overseas assets, obtaining specialist advice at an early stage can be particularly important.

Do overseas assets have to be disclosed?

When financial matters are dealt with in England and Wales, both spouses are generally required to provide full and frank financial disclosure. This may include property, bank accounts, investments, business interests and pensions held both in the UK and overseas.

For example, a couple might have a family home in London, a holiday property in France and investments or savings in Germany. These assets may all need to be considered when reaching a financial settlement on divorce.

International cases can therefore require additional investigation to establish where assets are held, how they are owned and what they are worth.

What happens to property owned abroad?

Foreign property is a common feature of international divorce.

A couple may jointly own a holiday home, one spouse may own property acquired before the marriage, or there may be inherited property abroad.

The English court may take overseas property into account when considering the couple’s overall finances. However, dealing with property in another country can create practical issues, particularly when it comes to implementing or enforcing an English court order abroad.

Local legal advice may therefore sometimes be required alongside advice from an English family solicitor.

What about foreign pensions?

Pensions can be among the most valuable assets in a marriage, and foreign pensions may create particular difficulties.

While an overseas pension can be relevant to the overall financial settlement, dealing with a pension scheme situated in another country is not always straightforward. Depending on the circumstances, alternative arrangements may need to be considered, such as one spouse retaining the pension while the other receives a greater share of another asset.

We discuss this in more detail in our article on what happens to a pension following a divorce.

What if I think my spouse is hiding assets abroad?

Concerns about undisclosed assets can be especially worrying in a cross-border divorce.

One spouse may have greater knowledge of the family finances or may control overseas bank accounts, investments or business interests.

If you believe your spouse has assets abroad that have not been disclosed, it is important to raise this with your solicitor. Depending on the circumstances, further information may need to be obtained to establish the true financial position.

Where there is a genuine concern that assets could be transferred, sold or hidden, urgent legal advice may also be required.

Does it matter which country we divorce in?

Yes. Where spouses have connections with more than one country, there may be circumstances in which different jurisdictions could potentially deal with the divorce.

Different countries can take different approaches to financial settlements, property, maintenance and pensions. The choice of jurisdiction may therefore have important financial consequences.

Anyone contemplating a cross-border divorce should ideally obtain advice before proceedings are started, particularly if there is a possibility that the other spouse might start proceedings elsewhere.

You can read more about divorce in England and Wales and our work as international divorce lawyers.

What if our assets are in England and Germany?

Beyer Family Law has particular experience advising German-speaking clients and families with connections to both England and Germany.

A German national living in London may, for example, own property in Germany, have German pension rights and also have assets acquired during the marriage in England.

In such cases, it is important to consider not only how the assets should be divided, but also which country should deal with the divorce and financial proceedings.

German nationals considering divorce in England can read our article Can Germans get divorced in the UK?.

Does divorce automatically settle our finances?

No. Obtaining a divorce does not in itself necessarily bring the financial claims between former spouses to an end.

Where an agreement has been reached about property, pensions, savings or investments, it will usually be important to consider formalising that agreement through an appropriate court order.

We explain this further in Can my ex claim my assets after we divorce?.

Speak to our international divorce lawyers in London

Beyer Family Law is a specialist London family law firm advising clients on international divorce, cross-border financial settlements and complex family law matters.

We regularly assist clients whose lives and finances extend beyond England and Wales, including German-speaking clients and families with connections to Germany.

If you are considering divorce and you or your spouse have property, pensions, investments or other assets abroad, please contact Beyer Family Law or call +44 (0)20 8616 8560 to discuss your circumstances.