ES v SS (No 2)

ES v SS (No 2)

Given the parties' equal entitlement, the impracticality and ongoing disputes regarding tax consequences, and the inability to implement the original intention without further litigation, the trust must be wound up and the net proceeds divided equally between the parties, with the NFIs attributed to the Husband at the value determined in October 2023 (excluding minority discount).

Parties
Applicant Wife: ES; Respondent Husband: SS
Jurisdiction
England and Wales
Judgment Date
25 March 2024
Procedural Posture
Financial Remedy Proceedings (family/matrimonial) / Post Judgment Determination of Trust Asset Division
Outcome
Trust to be wound up and net proceeds divided equally between the parties; NFIs to be attributed to the Husband at specified value; parties to draft order accordingly.
Legal Topics
Financial Remedies, Trusts in Divorce, Variation and Dissolution of Trusts, Tax Consequences of Trust Dissolution
Family Law Financial Remedies Trusts in Divorce Variation and Dissolution of Trusts Tax Consequences of Trust Dissolution

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Parties

ES

Applicant Wife

SS

Respondent Husband

Procedural Posture

Financial Remedy Proceedings (family/matrimonial) / Post Judgment Determination of Trust Asset Division

Legal Issues

  1. 1 How should the assets of The M Trust be divided between the parties post-divorce?
  2. 2 Should the trust be retained for the children or wound up and divided between the parties?
  3. 3 How should the value of L Co (an NFI within the trust) be determined?

Ratio Decidendi

Given the parties' equal entitlement, the impracticality and ongoing disputes regarding tax consequences, and the inability to implement the original intention without further litigation, the trust must be wound up and the net proceeds divided equally between the parties, with the NFIs attributed to the Husband at the value determined in October 2023 (excluding minority discount).

Court Disposition

Trust to be wound up and net proceeds divided equally between the parties; NFIs to be attributed to the Husband at specified value; parties to draft order accordingly.

Orders

  • The M Trust is to be wound up.
  • Net proceeds (after tax) to be divided equally between ES and SS.