Divorce and Jurisdiction: Why the Country You Divorce In Can Shape Your Financial Future
Key Takeways:
- Jurisdiction decides how assets, pensions, and income are divided, making the choice of country critical in divorce.
- England and Wales offer some of the most generous outcomes, from equal asset division to long-term spousal maintenance.
- Couples with international ties should seek urgent legal advice, as filing location can drastically change the result.
When couples decide to separate, the first thought is often emotional — the end of a relationship, a new chapter of life. But for many, especially those with significant assets, pensions, or cross-border ties, the more pressing question is practical: which country should handle the divorce?
Jurisdiction — the legal power of a particular country’s courts to deal with your divorce — plays a central role in determining how money, pensions, and future income are divided. And choosing the right forum can mean the difference between financial security and financial loss.
Divorce in Numbers
According to the Office for National Statistics (ONS), there were 102,678 divorces and civil partnership dissolutions in England and Wales in 2023. Of these, the Ministry of Justice reports that around 40,873 financial arrangements were settled through the courts.
That leaves the majority of couples resolving financial matters themselves — whether informally around the kitchen table, leaving them unaddressed (a risky strategy), or through non-court dispute resolution (NCDR) such as mediation and arbitration.
NCDR is increasingly popular. It is faster, usually less expensive, and gives separating couples more control. At a time when the court system is under severe strain, this can be an attractive route. But it’s not always suitable — particularly when there’s a dispute about where the divorce should take place.
The Importance of Forum Shopping
In family law, “forum shopping” refers to the ability of one spouse to choose which country’s courts should hear the divorce. While it may sound opportunistic, the decision is often crucial.
Why? Because:
- The country that deals with the divorce usually decides the financial settlement.
- Different jurisdictions have very different powers in relation to dividing property, pensions, and income.
- Each system has its own rules about what counts as marital property and how maintenance is calculated.
- Picking the wrong jurisdiction — or allowing your spouse to pick first — can leave you at a serious disadvantage.
In some situations, urgency is everything. Acting quickly to issue proceedings in your preferred country may secure a far better financial outcome.
Capital Division: A Tale of Two Systems
The division of assets is one of the biggest areas where jurisdictions diverge.
In England and Wales, the courts have developed a strong presumption in favour of sharing matrimonial property. This principle was affirmed in the Supreme Court case of Standish v Standish [2025] UKSC 26, building on the landmark 2006 decisions in Miller v Miller and McFarlane v McFarlane.
In practice, this means:
- Assets built up during the marriage — or even during cohabitation leading seamlessly into marriage — are usually divided equally.
- Courts may “matrimonialise” property that was originally one spouse’s, treating it as joint property if it was shared or integrated into family life.
- Cohabitation periods are often added to the length of the marriage, extending the pool of divisible assets.
Take this example:
- A couple start living together in 2004, marry in 2023, and divorce in 2024.
- Although the legal marriage lasted just one year, the English courts may treat this as a 20-year marriage because of the cohabitation period.
- As a result, all wealth created since 2004 may be subject to division.
This generosity reflects social reality — nearly a quarter of couples now cohabit before marriage — but it is not the global norm.
Compare this with California, where community property rules only cover assets accumulated during the legal marriage. In the same scenario, only the wealth generated between 2023 and 2024 would be shared.
Pensions also highlight major differences. In England and Wales, courts can make pension sharing orders to ensure fair retirement provision. But these orders usually only apply to UK-based pensions. If the only pension is abroad, an English court may have no power to divide it, creating potential prejudice.
Income: Maintenance Across Borders
Another key difference lies in ongoing support — known as spousal maintenance in England and Wales, or alimony in other systems.
English courts take a needs-based approach rather than automatic sharing of income. The leading case, Waggott v Waggott [2018] EWCA Civ 727, made clear that future earnings are not matrimonial property. Instead, the court considers:
- The payer’s income.
- The payee’s reasonable income needs.
- The payee’s capacity to earn in future.
- The payer’s ability to meet the shortfall.
This often leads to detailed debates about lifestyle, budgets, and earning potential. Duration is another battleground — should maintenance last for life, or just a few years until the recipient becomes financially independent? Courts may also capitalise maintenance, ordering a lump sum instead of ongoing payments.
But in other countries, the approach is far stricter.
- In Scotland, spousal maintenance is usually capped at three years, unless longer support is essential to avoid hardship.
- In Luxembourg, Sweden, and Norway, maintenance is rare and short-lived, with a strong presumption in favour of independence.
For a dependent spouse, issuing proceedings in England could therefore make the difference between years of financial support and none at all.
Why London Is the Divorce Capital of the World
The combination of:
- Broad definitions of “marital property,”
- Generous pension and maintenance provisions, and
- Judicial discretion to tailor awards,
has given London a reputation as the divorce capital of the world.
This isn’t just about ultra-high net worth individuals fighting over multi-million-pound estates. Even for middle-class families, the English system can produce significantly more generous outcomes than elsewhere.
But generosity cuts both ways. The same rules that protect a financially weaker spouse can create long-term obligations for the stronger one. The law in England still reflects a paternalistic view of marriage, treating it as a financial commitment that can survive long after the legal relationship ends.
Practical Guidance for Couples
If you or your spouse have international links — perhaps through nationality, residence, property, or employment — you may have a choice of jurisdictions. In such cases:
- Seek urgent legal advice. Timing matters. The first to file often secures the preferred jurisdiction.
- Consider pensions. Where are they located? Can they be shared?
- Review maintenance expectations. How does each system treat spousal support?
- Think long-term. An immediate financial gain could be outweighed by ongoing obligations.
- Don’t assume fairness means the same thing everywhere. What feels “normal” in one country may be unavailable in another.
Conclusion
Jurisdiction is not just a technical legal point. It can determine how your assets are divided, whether pensions are split, and how long spousal maintenance lasts.
For some, the English system’s generous approach offers a lifeline. For others, it creates a financial burden stretching years beyond the marriage.
That is why, when a marriage breaks down, one of the most important questions you may face is not if you are divorcing — but where.
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Protect Your Future: Why a Pre-nup or Post-nup Could Be One of the Smartest Legal Steps You Take
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