Frank Arndt, founding partner of Paradigm Family Law LLP, has been featured in Private Banking Magazin, a leading German publication focused on wealth management, private banking and financial advisory for high-net-worth clients.
The article examines why English divorce law can reach far more deeply into wealth structures than many continental European investors expect, particularly where assets, property, businesses or pensions are connected to London or the wider UK.
For internationally mobile families and investors, divorce in England and Wales is not simply a personal matter. It can become a significant financial event affecting liquidity, governance, succession planning and long-term wealth protection.
As Frank explains in the publication:
“Anyone managing international wealth without considering divorce risk is only seeing half the picture.”
Why English divorce law often surprises international investors
Many investors from continental Europe assume that divorce follows a predictable legal formula.
In several European jurisdictions, financial division operates through relatively strict statutory regimes. In England and Wales, however, the courts apply a broader fairness-based framework.
Rather than applying rigid formulas, judges consider the overall financial circumstances of the family.
Financial orders may include:
- the sale or transfer of property
- ongoing financial maintenance
- pension sharing orders
- redistribution of investment assets
- restructuring of ownership of business interests
For internationally wealthy families, these outcomes can affect corporate structures, property portfolios, trusts, investment vehicles and retirement planning.
No-fault divorce simplified the process, not the financial consequences
Since April 2022, England and Wales have operated a no-fault divorce system. The reform simplified the process of ending a marriage by removing the need to assign blame.
However, the financial consequences of divorce remain complex.
The Law Commission has recently confirmed that the law governing financial remedies may require reform and has explored potential future models.
For international families and investors, this means financial exposure linked to divorce continues to require careful legal planning.
Judicial discretion plays a central role
A key theme of Frank’s article is the wide discretion available to judges in financial remedy proceedings.
Courts in England and Wales assess a range of factors under Section 25 of the Matrimonial Causes Act 1973, including:
- the financial needs of each spouse
- the standard of living during the marriage
- the welfare of any children
- the sources of wealth
- earning capacity and future financial prospects
- housing needs
- overall fairness between the parties
This framework allows the court to evaluate the entire financial structure of the family.
Assets are rarely assessed in isolation. A London property may become part of a liquidity solution. A business shareholding may require disclosure and valuation. Pension rights may form part of the financial settlement architecture.
For families with international assets or cross-border structures, these issues can quickly become complex.
Ownership does not always guarantee protection
Entrepreneurs and investors often assume that assets held in one name or within corporate structures are automatically protected in divorce proceedings.
In practice, English courts frequently look beyond formal ownership and consider the economic reality of how assets were used during the marriage.
Lifestyle, financial dependency, housing needs and the availability of alternative resources may all influence how the court approaches financial division.
For internationally structured wealth, careful planning and documentation are therefore essential.
Divorce can become a liquidity event
One of the most underestimated aspects of divorce for wealthy families is liquidity.
Public discussion about divorce settlements often focuses on percentages. In practice, the key question is often much simpler: where will the money come from?
An entrepreneur may hold substantial value in a company but have limited personal liquidity. A property investor may control significant real estate but face refinancing pressure if assets must be realised.
In these circumstances, divorce becomes a liquidity event rather than simply a reallocation of wealth.
Frank’s article highlights why family offices, wealth managers and advisers should treat family law exposure as part of broader wealth governance and risk management.
International mobility works both ways
Cross-border families often move between jurisdictions during their lives and careers. While many internationally mobile professionals relocate to London, others later return to Germany or divide their time between both countries.
Anyone considering relocating to Germany should also understand the legal and practical implications of living there. Useful guidance on relocation, residency, taxation and life in Germany can be found through resources such as IAmExpat Germany: https://www.iamexpat.de/
Understanding how different legal systems approach family law, taxation and financial planning is an important part of managing international wealth.
About Frank Arndt
Frank Arndt is the founding partner of Paradigm Family Law LLP, a specialist family law firm advising clients in England and Wales on complex divorce and financial remedy matters.
He is dual-qualified as a Solicitor in England & Wales and as a Rechtsanwalt in Germany. Frank is also a trained mediator and a qualified judge in Germany.
He regularly advises on high-value and internationally complex divorce cases involving cross-border assets, family businesses, trusts and international financial disclosure. His work frequently involves wealth structures across Europe, the United States, the Middle East, Africa and the Asia-Pacific region.
Read the original German article
If you would like to read Frank’s original article in German as published in the private banking magazine, you can access it here: https://www.private-banking-magazin.de/englische-scheidung-was-vermoegende-wirklich-riskieren/
Specialist advice on international divorce
International divorce cases require careful legal strategy, particularly where assets, businesses or property are located across multiple jurisdictions. Paradigm Family Law offers a free initial consultation and clear fixed-fee guidance at the outset. We advise families across England & Wales on complex international matters, including divorce in Germany (DACH) and jurisdiction strategy.
If you would like to discuss an international relocation, expat separation, or cross-border family law issue, please do not hesitate to contact Frank or Evelyn. Paradigm Family Law offers a free initial consultation, and our fixed-fee solutions provide clarity and cost control from the outset.
Call us on 00 44 1904 217225 or email info@paradigmfamilylaw.co.uk to arrange a confidential discussion.
Additional Reading
Living in Germany as an Expat Family: What UK Families Need to Know Before Problems Arise
Divorce in Switzerland for Expats: What to Know Before You Move
Living in the Netherlands as a British Expat Family: What You Need to Know
Read more thought leadership articles here.
