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I’m British and married to a fellow British citizen, but we live overseas and are raising our family abroad. Our marriage has broken down and I want to get divorced — but I don’t know if I’m eligible to file in the UK? This is important to me because I still consider it “home” and I think I would receive more money if I proceed in Britain. Will this be possible? What are my other options?
Victoria Batstone, senior associate at Stevens & Bolton, says in short, yes. As a British expat, you can divorce in England and Wales if you meet certain criteria, but it’s essential to understand your options, including where financial matters could be resolved and best determined. Divorce should not be considered in isolation. One country may be more favourable or generous than another and the ability to bring a financial claim is often dependent on whether you have already started proceedings in another country or not. Taking early legal advice in all relevant countries is crucial, as you may need to act quickly.
Just being a British citizen, or married to a British citizen, doesn’t automatically qualify you for a divorce in England. This will depend on where you, and possibly also your spouse, are habitually resident or domiciled — which is not straightforward to define. Habitual residence means where you are currently living, but this can be disputed. Domicile generally refers to where your roots are, but it can be interpreted in various ways.
For example, you can have a domicile of origin (usually your father’s home country), a domicile of dependence or domicile of choice. As you are British, you may be domiciled in England. Consequently, assuming you have been married for at least one year and your marriage has irretrievably broken down, you should be able to bring a divorce here.
If you are unsure of your domicile, this can be explored with your lawyer. They may ask where you intend to spend your old age, for example, to help determine this.
If a divorce application is made in multiple countries, a judge will assess which is the most appropriate court to hear your case. If you have signed a prenuptial agreement, inform your legal adviser of this at the earliest stage as this can influence the decision. The location of assets will also impact the court’s consideration.
Another option is to divorce elsewhere provided you meet that country’s criteria. If you divorce overseas and the financial award is inadequate, the English courts might still get involved in financial matters post-divorce. There’s no automatic right to apply; you need permission to apply, which will only be granted if you can establish that you have a specific connection with England.
The English courts can also assist if the country in which you divorce cannot make orders over offshore assets such as pensions. In those scenarios, the English courts can be asked to make an order either as a mechanism of implementing the foreign order or to remedy the inadequate financial provision.
So, while it’s possible for you as a British expat to divorce in England, navigating the legal and financial intricacies across different jurisdictions requires careful and timely advice. Taking advice in all relevant jurisdictions is encouraged to ensure that you can make a fully informed decision that will be most advantageous to you.
I am the managing director of a financial firm in the City. I have worked in the industry for over 30 years but I’m still a few years away from retirement age. Someone in my network — a board member of a successful business — approached me and asked me to consider becoming a non-executive director. I am interested but slightly concerned about how much time I have to commit. I have heard conflicting advice — some have told me a position as a NED is “easy money” and just as much a status symbol for me and the business as anything else. Others have told me it’s a bit more involved than that. Should I take on the position?
Mark Howard, partner in the corporate team of law firm Charles Russell Speechlys, says typically a non-executive director will be engaged to provide a few days’ regular service per month. This can be to attend full board meetings and, if appointed, meetings of relevant board committees such as audit, remuneration or risk meetings. Good preparation for these meetings is always important, taking the time to read relevant agendas and papers circulated by the company secretary or executive directors in advance.
The role at the full board meeting is to bring your years of experience and to provide constructive challenge and insights to the executive directors. The role on board committees is more detailed and can involve external meetings with, for example, the company’s auditors.
In addition to these regular and foreseeable commitments, NEDs need to be on hand and available (often at very short notice) to help make decisions in relation to material developments, be they planned strategic events such as a proposed corporate transactions or fundraising, or emergency events such as a profits warning or cyber attack. This additional ad hoc call on a NED’s time can result in interruptions to social plans including overseas holidays. Accordingly, the NED experience and the extent of any involvement varies from company to company and depends on what comes along.
There is also a material difference between being a NED of a listed public limited company and a private company. The former requires an additional layer of knowledge, namely at least an overview understanding of the applicable listing rules and corporate governance codes that apply to the company in question.
The legal obligation for a listed company to make market announcements of “inside information” without delay can mean that NEDs need to be available late at night or over weekends. With remote working and video conferencing now normal practice, this is thankfully now more manageable, but may still feel intrusive.
Beyond the time commitment, it is worth thinking more broadly about the pros and the cons of becoming an NED and assessing your motivations. Strategically, NEDs can play a crucial role in shaping a company’s long-term strategy and guiding it towards sustainable growth, which can be very rewarding.
For those approaching retirement, the NED role can act as a comfortable transition from a full-time executive role, reducing stress while maintaining engagement in the business world. It is also a great opportunity to expand networks and enhance one’s professional skills and knowledge, particularly by learning about new industries and emerging technologies. And subject to those ad hoc time demands mentioned above, the role is typically part-time, allowing NEDs to maintain a better work-life balance and pursue other interests or opportunities outside work.
There are cons to the NED role, however. One of the main challenges is the limited control NEDs have, as their role is primarily advisory and lacks executive powers to implement decisions, which can be challenging for those used to a hands-on management role.
Liability is another key concern. NEDs are equally liable with the executive directors for the company’s success or failure, which means they face legal accountability that can expose them to personal risk. While the financial risk can be generally mitigated by securing appropriate insurance to protect against legal actions, it can still make for discomfort and worry and of course insurance may not cover all costs and liabilities. It cannot address any reputational damage arising from involvement in a high-profile company collapse.
The Carillion Group’s collapse serves as a valuable insight into the fairness of the duties imposed on NEDs. Following Carillion’s entry into liquidation, the Insolvency Service initiated disqualification proceedings against Carillion’s former NEDs, alleging they failed to know the company’s true financial position, including alleged fraudulent misstatements. The NEDs had provided extensive evidence of their diligent efforts to fulfil their responsibilities, which they felt was sufficient. The eventual abandonment of the case underscored that while NEDs are expected to be vigilant, their duties must be reasonable and aligned with the nature of their role.
Given your extensive experience in the financial sector, a NED position could be a rewarding and strategic move. However, it’s crucial to proceed with a clear understanding of the responsibilities and risks involved.
The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect result arising from any reliance placed on replies, including any loss, and exclude liability to the full extent.
Do you have a financial dilemma that you’d like FT Money’s team of professional experts to look into? Email your problem in confidence to money@ft.com.
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