AB v. CD & Anor (International) Ltd [2006] ScotCS CSOH_200 (22 December 2006)

AB v. CD & Anor (International) Ltd [2006] ScotCS CSOH_200 (22 December 2006)

The court found that the assets held in the Mergie Trust, including Mergie House, cash, and shares, were in substance under the control and for the benefit of the first defender, and thus should be treated as his property for the purposes of matrimonial property division. The court valued the matrimonial property at £2,854,000 and, applying the principles of fair sharing and maintenance, awarded the pursuer a capital sum of £1,000,000, attributing £500,000 of this to maintenance for cross-border enforcement purposes.

Citation
[2006] ScotCS CSOH_200
Parties
Pursuer: A. B.; First Defender: C. D.; Second Defender: Bank of Scotland Trust Company (International) Limited
Jurisdiction
Scotland
Judgment Date
22 December 2006
Procedural Posture
Divorce and Financial Provision / Final Judgment After Proof (trial)
Outcome
Decree of divorce granted; decree for payment of £1,000,000 to the pursuer with interest at 8% per annum from date of decree; certification of expert witness and allowance of additional fee.
Legal Topics
Divorce, Financial Provision on Divorce, Matrimonial Property, Trusts, Enforcement of Judgments, Jurisdiction
Family Law Trusts and Estates Private International Law Divorce Financial Provision on Divorce Matrimonial Property Trusts Enforcement of Judgments +1 more

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Parties

A. B.

Pursuer

C. D.

First Defender

Bank of Scotland Trust Company (International) Limited

Second Defender

Procedural Posture

Divorce and Financial Provision / Final Judgment After Proof (trial)

Legal Issues

  1. 1 Whether assets held in a discretionary trust can be treated as matrimonial property belonging to the defender for the purposes of financial provision on divorce
  2. 2 Valuation of matrimonial property where disclosure is incomplete and assets are held via offshore structures
  3. 3 Whether a capital sum awarded on divorce is enforceable as 'maintenance' under Brussels I for cross-border enforcement

Ratio Decidendi

The court found that the assets held in the Mergie Trust, including Mergie House, cash, and shares, were in substance under the control and for the benefit of the first defender, and thus should be treated as his property for the purposes of matrimonial property division. The court valued the matrimonial property at £2,854,000 and, applying the principles of fair sharing and maintenance, awarded the pursuer a capital sum of £1,000,000, attributing £500,000 of this to maintenance for cross-border enforcement purposes.

Court Disposition

Decree of divorce granted; decree for payment of £1,000,000 to the pursuer with interest at 8% per annum from date of decree; certification of expert witness and allowance of additional fee.

Orders

  • Decree of divorce in favour of the pursuer
  • Decree for payment of £1,000,000 to the pursuer by the first defender, with interest at 8% per annum from date of decree