Citywealth Quick Insight Series on divorce and family law Trends – Clare Radcliffe, Mishcon de Reya

Date: 01 Jul 2026

Karen Jones

This week’s Citywealth Quick Insight Series on divorce and family law Trends is dedicated to Clare Radcliffe, Partner, Mishcon de Reya.

How has sports investment evolved from a passion driven purchase inIn high value family disputes, clients often assume assets will be divided equally. How do the courts approach the division of wealth in England and Wales, and what factors most commonly lead to outcomes that differ from a straightforward equal split?

People are often aware that there is a starting point of “equal sharing” in financial remedy cases. However, that is only part of the picture. “Matrimonial” assets – those acquired during the marriage other than through inheritance or a significant gift from a third party – tend to be divided equally. Assets brought into a marriage by one party, or received by them by inheritance or gift, will usually stay with the party who initially owned them, unless they are required to meet the financial needs of the other spouse or any children. A grey area can arise where an asset brought into the marriage by one party is then used as a family asset. This can lead to arguments about where the assets came from, when they were acquired and what the spouses used them for.

When the bulk of family wealth is tied up in illiquid assets such as private company shares, private equity interests, family businesses, or investment structures, what are the main valuation challenges and how can individuals best protect their core interests?

Where wealth is held in illiquid assets, particularly those where there is not an obvious market for them (such as interests in private companies), valuation can be extremely tricky. Professional valuations are usually required, but these are often found to be fragile and uncertain. The valuation given at the beginning of a court process may differ significantly from the value by the time a matter is resolved. Questions of liquidity may also impact how value is to be realised and discounts can be applicable. Those who hold an interest in illiquid assets should aim to be transparent. Trying to conceal assets, such as a prospective significant investor, can lead to a financial award being set aside if it was based on incorrect assumptions. Given the potential for disputes, it is wise to consider protecting interests via cohabitation and pre / post nuptial agreements from the outset.

Clients expecting future liquidity events, such as earn-outs, carried interest vesting, business sales, or trust distributions, frequently ask whether a former spouse, civil partner, or cohabiting partner may have a claim on money received after separation. How are deferred or contingent assets typically treated, and what approaches do courts favour when dealing with future wealth?

There is no “one size fits all” approach to deferred remuneration or distributions. In some instances, where the profit relates to a period where a marriage subsisted (such as a bonus paid which relates to work carried out during the marriage), there can be an argument that the payment is “matrimonial” and so should be shared. In other instances, it may not be. Where the payment is required to meet a spouse’s needs, or those of children of the marriage, the court will be less concerned as to whether it was received before or after separation. The approach tends to be fact-specific. For the avoidance of doubt, as the law currently stands, cohabitants have no claims to each other’s assets on separation but this area of the law is expected to develop given the current government consultation on cohabitation reform.  

In substantial family disputes, how much practical difference do findings of litigation misconduct or non-disclosure make to the outcome, and what level of evidence is generally required to persuade the court that assets have been concealed or arrangements misrepresented?

There is a duty on parties to produce full and frank disclosure of their assets in financial remedy proceedings. Where a spouse fails to disclose assets or to properly engage with disclosure, the court may draw inferences that they are not disclosing their assets because they are hiding something substantial. In practical terms, proving that assets have been concealed can be difficult – one party may feel sure that the other must be concealing wealth, even where they are not. On the other hand, financially sophisticated spouses may hold assets in labyrinthine structures spanning a variety of jurisdictions and unravelling true ownership can be complex. It is usually worth engaging with specialist lawyers in such circumstances.

Where wealth is held through offshore trusts, foundations, family investment companies, private trust companies, or other succession planning structures, how do courts distinguish between genuine third-party assets and resources that remain available to a family member?

The court tends to look at the reality of a situation. It may consider matters such as the source of the funds, the extent to which the spouse has been able to access the assets, the history of how the assets have been held and the terms of any trust or governing documents for the structure in question.

With increasing attention on prenuptial agreements, postnuptial agreements, and cohabitation agreements, what drafting techniques and procedural safeguards give these arrangements the greatest weight and enforceability in practice?

It is important that agreements are fairly reached, without undue pressure and with each party having sufficient time to consider the agreement and implications and to take legal advice if they choose to do so. Proper disclosure by each party of their financial position is also important if an agreement is to be upheld. For pre-nuptial and post-nuptial agreements, the agreement must be “fair” in the circumstances of the case.

Once a financial settlement has been agreed or ordered, what are the most effective ways of securing payment where wealth is tied up in businesses, trusts, offshore structures, or future liquidity events, and what warning signs suggest enforcement difficulties may arise later?

Hopefully, spouses and their legal teams will have approached the financial settlement with enforcement in mind. While the court can make a variety of orders to assist with enforcement, the practicalities of enforcement can become difficult, particularly where other jurisdictions are involved. It is important for spouses and their advisers to think proactively about the prospects of realising assets and to consider that at each stage of the process, so that any award made is structured in a way that can be enforced with minimal fuss and with appropriate security provisions.

In high value cases, how can a financially weaker spouse protect themselves against the risk that assets are dissipated, restructured, or moved offshore before a settlement is implemented?

The expectation is that the status quo be maintained but there is no requirement in English law for assets to be preserved during the course of proceedings necessarily. It may be perfectly appropriate for a spouse to spend money, or restructure assets – they may need to run a business in the usual way. Usually, transparency between the spouses can help reassure the financially weaker party and, for example, undertakings could be requested. While it is possible in certain circumstances for a party to obtain a freezing order against the other, preventing them from dealing with certain assets, such orders are only granted in very limited circumstances and where there is clear evidence of dissipation.

NB: These answers all relate to financial claims on divorce. While the questions refer to “family disputes” there is no wider law of “family disputes” in England and Wales. A claim between sisters would be decided based on property law, commercial law, or any other applicable area of the law.

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