Tees’ expertise resolves complicated divorce financial settlement

Underlying issues resurface to make for a complex financial case between a husband and his ex-wife.

For context:

Tees were instructed to represent Benjamin* in concluding a financial settlement with his ex-wife following their divorce. Prior to Benjamin becoming a client of Tees, he had sought legal advice elsewhere to represent him whilst going through their divorce.

It had come to light that even though their divorce was settled, the financial issues remained unresolved. Influential factors in the time that passed between the divorce and Benjamin’s legal representation from Tees are where the case faces complexities.

Throughout Benjamin’s marriage with his ex-wife, he was a stakeholder at a successful company within the motor industry. Following on from the divorce, he had since sold his shares but remained an employee, therefore earning additional shares which had vested prior to a nine-figure sale.

What happened next:

As Benjamin and his ex-wife had not reached a financial settlement at the time of divorce, it then became a question of her entitlement to the following:

• the initial shares, and
• any future shares.

This was complicated by the associated risk of a potential future tax liability on the shares.

With this in mind, the parties engaged in negotiations to achieve a financial settlement, in the region of a significant seven figure sum.

A multi-disciplinary service:

Financial settlement aside, Tees identified complicated inheritance and tax issues which could become expensive for Benjamin. Pulling in expertise from other areas of the business, Benjamin was provided with the correct tax and associated legal advice.

A detailed scheme was set up to protect the husband on future tax issues, contained in the financial consent order and a related Deed of Indemnity.

This case, valued at approximately £20 million, is a strong reflection of the exceptional quality at Tees. We are proud to offer our clients a comprehensive, multi-disciplinary service, drawing on expertise from a wide range of specialisms.

If you’re unsure of what to do next after a separation, our experts are here to guide you through the process.

* Please note names have been changed to protect the privacy of the client.