Month: October 2023

Divorce Capital of the World

London has become known as the ‘divorce capital of the world’, proving that where you file your divorce can be of extreme importance. File in the wrong jurisdiction, like Afghanistan, and your divorce can be deemed a nullity. But file in the right jurisdiction, and you could get a windfall.

Divorce Capital

London Calling

Russian tycoon Vladimir Potanin, is currently making a legal challenge in the UK Supreme Court next week over a $6b marital settlement sought by his ex-wife, Natalia Potanina, which helped to make London’s reputation as the “divorce capital” of the world.

The couple married in 1983 in Russia. During the 1990s, Potanin had a reputed $20bn fortune, including shares in companies or other business entities that were not registered in his name – though Potanin was their beneficial owner, according to information contained in a 2021 Court of Appeal ruling.

Potanina was initially awarded roughly $41.5mn in 2014 by Russia’s courts but has claimed she is entitled to a far larger share of her husband’s fortune.

Potanina, who is Russian but who also has had a home in England since 2014, is now seeking half of the assets beneficially owned by her former husband. The case has prompted what one recent Court of Appeal ruling described as a “blizzard of litigation”.

In 2019, Potanina turned to the High Court in London, citing Part III of the Matrimonial and Family Proceedings Act 1984, legislation that gives the English courts the power to make financial orders if a marriage has been annulled outside the UK.

Potanina alleged in proceedings at the High Court that she had “made exhaustive efforts to obtain justice in Russia” but that the sum awarded in Moscow “does not even begin to meet my reasonable needs”. Her attempt to bring a claim in England was initially blocked by the High Court in 2019 on the grounds that the couple had little connection with Britain.

In the 2019 ruling, Mr Justice Jonathan Cohen said that if her claim went ahead, “there is effectively no limit to divorce tourism”. However, the Court of Appeal reversed the decision in 2021 paving the way for Potanina to bring the action in England.

Potanin is seeking to overturn that Court of Appeal ruling at the Supreme Court in a two-day hearing this month. If he loses the appeal, the battle is expected to move to the family courts.

Florida Divorce Jurisdiction

International divorces often bring up the issue of jurisdiction. Who sues whom, how do you sue for divorce, and in what country are problems in an international divorce case. The answers are more difficult than people think as I have written before.

A British divorce might give more money because British courts can disregard prenuptial agreements, and the cost of living is high in London. However, in Florida, the outcome could be different still.

Rules about children and hiding assets is a problem in every divorce, especially in international cases. The problem of discovery of hidden wealth is even bigger in an international divorce because multiple countries, and multiple rules on discovery, can be involved. The problems in an international divorce are more complicated because hiding assets from a spouse is much easier in some countries than in others.

Florida, at one extreme, requires complete disclosure of assets and liabilities. In fact, in Florida certain financial disclosure is mandatory. At the other extreme, there are countries which require very little disclosure from people going through divorce.

Choosing possible countries to file your divorce in can be construed as “forum shopping”. The European Union introduced a reform which tried to prevent “forum shopping”, with a rule that the first court to be approached decides the divorce. But the stakes are high: ending up in the wrong legal system, or with the wrong approach, may mean not just poverty but misery.

Residency for divorce is a very important jurisdictional requirement in every case. Generally, the non-filing party need not be a resident in the state in order for the court to divorce the parties under the divisible divorce doctrine. The court’s personal jurisdiction over the non-filing spouse is necessary only if the court enters personal orders regarding the spouse.

The durational domicile or residency requirement goes to the heart of the court’s ability to divorce the parties, because the residency of a party to a divorce creates a relationship with the state to justify its exercise of power over the marriage.

Rudie Can’t Fail

Potanin’s appeal of the order granting permission for Potanina to bring her claim in England, could become one of the biggest settlement cases recorded in the country. Potanin, who was hit with sanctions by the British government in 2022 because of his support for the Kremlin after Russian president Vladimir Putin ordered the full-scale invasion of Ukraine, is due to begin on October 31st.

London’s reputation as the “divorce capital of the world” was earned because of a perception that courts there were awarding large financial settlements to financially weaker spouses.

The ruling on appeal is expected to have significant ramifications for other cases, particularly in relation to whether ex-partners can turn to the English courts to obtain a more favorable payouts.

The Financial Times article is here.

Three Men Family Law Case Update 2023

The Three Men and a Family Law Case Update is back. Many of the changes to timesharing and alimony would cause some to say 2023 has been an “active” year in Florida  family law. So, for anyone interested in discussing the latest developments in Florida family law, and hasn’t already registered, I will be speaking at the Three Men and a Family Law Case Update 2023 on Thursday, October 19, 2023 starting at 12:00 PM to 1:30 PM

Case Law Update

Join me and fellow Florida Bar Board Certified Marital & Family Law attorneys, Reuben Doupé and Cash A. Eaton, for an interactive discussion on some of the major Florida marital and family law changes that have redrawn the family law landscape in 2023.

The course is an online webinar, and we will be reviewing many of the most important recent appellate opinions within Florida Marital and Family Law. Reuben, Cash and I will cover a wide range of topics from Florida’s newest family law cases.

Sponsored by the Florida Bar Family Law Section, attendees will be eligible for 1.5 CLE credits.

Registration is still open so register here.

Father Must Share Custody with Mother’s Boyfriend

In a custody decision that will surprise many family lawyers, a Pennsylvania court ordered the natural father of his child to equally share custody of his child with the Mother’s boyfriend. It is a decision that is putting the nature of parental rights back in the news. Will the natural father’s appeal be granted?

Custody Boyfriend

Loco Parentis

The child, S.J., was born in April 2020. At the time, the mother was in a relationship with a man named Kareem Smith. At the time of S.J.’s birth, Kareem thought he was the biological father.

Then the mother died in May 2021, and her boyfriend continued to act as the father.

Victor got a paternity test which confirmed that he, not Kareem, was the biological father of S.J. The Mother’s boyfriend, Kareem, was merely acting in loco parentis – a Latin term meaning “in place of a parent.”

About a month after the paternity test results showed he was the natural father, Victor filed an action for sole custody of S.J. against Kareem. A custody hearing was held in February 2023.

Victor’s position was that Kareem was effectively an interloper who was interfering with Victor’s rights as the parent.  The family court held a few proceedings to introduce Victor to S.J.  Afterwards, the family court entered a temporary order.

The temporary order determined that Kareem was a psychological parent of the child, or was in loco parentis status because of his involvement as the child’s perceived father for more than a year. The court then awarded shared legal custody and shared physical custody on a 50/50 basis to the two fathers.

The natural father appealed.

Florida De Facto Parents

I’ve written about parental responsibility in Florida before. Florida uses the parental responsibility concept. Generally, shared parental responsibility is a relationship ordered by a court in which both parents retain their full parental rights and responsibilities.

Under shared parental responsibility, parents are required to confer with each other and jointly make major decisions affecting the welfare of their child. In Florida, shared parental responsibility is the preferred relationship between parents when a marriage or a relationship ends.

The test applied to determine parental responsibility is the best interests of the child. Determining the best interests of a child is no longer entirely subjective. Instead, the decision is based on an evaluation of certain factors affecting the welfare and interests of the child and the circumstances of the child’s family.

Florida courts have considered the role of loco parentis, or psychological parents, like grandparents for instance, in a child’s life. Generally, in a dispute between a natural father and de facto parents, custody can be denied to the natural father only if there is clear and convincing evidence that the natural father abandoned the child, or is unfit, or placing the child with the natural father will be detrimental to the child’s welfare.

Heartbreaker in the Quaker State

On appeal, the Father argued that the trial court erred granting the mother’s boyfriend shared physical and legal custody of the child when the weight of the evidence was against shared custody.

The appellate court noted that in Pennsylvania, a natural parent has a prima facie right to custody, which will be forfeited only if convincing reasons appear that the child’s best interest will be served by an award to the third party.

The appellate court found no basis for changing the custody order because the family court judge found, by clear and convincing evidence, the need for stability and continuity in the child’s life was sufficient to overcome the presumption that custody be awarded to the natural parent. Because of the child’s “need for continuity”, and the fact that the two fathers co-parented well, the court affirmed the shared custody order.

The decision of the Superior Court of Pennsylvania is here.