Our family law team regularly advise clients navigating divorce where assets are held across international borders. If you or your spouse own property, investments, pensions, shares or business interests outside Scotland, your divorce is likely to raise issues beyond a straightforward domestic separation. Hopefully this article explains what those issues are, how Scottish law addresses them, and what practical steps you can take to protect your interests.
Scottish law and jurisdiction
In Scotland, the division of assets on divorce (known as financial provision) is governed primarily by the Family Law (Scotland) Act 1985. Under that Act, the court applies a set of principles—most importantly, that the net value of “matrimonial property” (property acquired during the marriage) should be shared fairly between the parties. The starting point for that fair sharing is an equal division, with the value of assets assessed at the “relevant date,” that is the earlier of the date you stopped living together as husband and wife (although you can still be physically in the same property) or the date divorce proceedings were served. Importantly, the definition of matrimonial property includes assets held anywhere in the world, not just those in Scotland. A Scottish court can therefore take account of foreign real estate, overseas bank accounts, and international pension rights when making its financial orders.
For the Scottish courts to have jurisdiction (in essence, authority to determine the case), at least one of the following must apply: either you or your spouse are domiciled in Scotland when the action begins, or either of you has been habitually resident in Scotland for at least one year immediately before the action is raised.
The duty to disclose all assets
Under section 20 of the 1985 Act, both parties to a divorce have a legal obligation to provide full and frank disclosure of their financial resources. This principle has been reinforced in various reported decisions. This duty extends to all assets, wherever in the world they may be held.
A failure to disclose assets—whether deliberate or through carelessness—can have serious consequences. The court may draw adverse inferences against a party who fails to provide proper disclosure, and orders can be revisited if hidden assets come to light after a settlement. Transparency is not optional; it is a legal requirement and a cornerstone of the fair sharing principle. Orders are frequently granted by the Scottish courts compelling disclosure, with those orders enforceable directly on financial institutions.
Why international assets complicate divorce
When a marriage breaks down and the couple’s assets are spread across more than one country, three immediate questions arise: which country’s courts have authority to decide the financial settlement, which country’s laws apply to the division of those assets, and perhaps most importantly, how can we make sure that any orders made can be enforced? The answers to these questions can significantly affect the outcome of a case.
Different countries have very different rules about how marital assets are divided. What is considered “fair” in Scotland is unlikely to be the same as in France, the United States, the Middle East or even in England & Wales. Competing claims in multiple jurisdictions can lead to delays, increased costs, and uncertainty of outcome. If one court action feels stressful and expensive, then we want to avoid a multiplicity of court actions in different countries.
Common types of international assets
The international assets most frequently encountered in Scottish divorce proceedings include: residential or commercial property held abroad (for example, a holiday home in Spain or a rental property in Dubai); bank accounts in offshore or foreign financial institutions; overseas pensions, including entitlements accrued while living or working abroad; business interests in companies registered or operating outside the United Kingdom; and investment portfolios, shares, or funds managed by foreign financial institutions.
Each type of asset brings its own valuation and enforcement challenges, particularly where foreign legal systems might impose restrictions on the transfer or division of property.
Enforcing scottish court orders abroad
As I’ve touched upon, one of the most significant practical challenges is enforcement. Whilst a Scottish court can order the transfer of a foreign property or division of an overseas bank account, but enforcing that order in the country where the asset is located is a separate matter, and we need to make sure that any order is effective. Outwith Scotland, but within the United Kingdom, enforcement is relatively straightforward, using the Civil Jurisdiction and Judgments Act 1982. Outside the UK, however, the position is more complex. Since the end of the Brexit transition period on 31 December 2020, there is no longer automatic mutual recognition of court orders between Scotland and EU member states. Enforcement in EU countries, and elsewhere, now depends on the national laws of the country in question, or on applicable international conventions such as the Hague Convention.
In practice, if significant assets are held abroad, we may need to instruct local lawyers in the relevant jurisdiction to assist with enforcement. While this can add complexity, getting specialist advice early on helps ensure that what is awarded in Scotland can actually be recovered.
Practical steps
If you are facing divorce and international assets are involved, there are several steps you should take as early as possible: First, gather documentation. Collect information and any records of all assets wherever they are located—bank statements, property deeds, pension statements, company accounts, and investment valuations. Second, seek specialist legal advice. Not all family lawyers have experience with cross-border asset issues. Instruct a solicitor with expertise in international family law, ideally one with established contacts in the jurisdictions where assets are held. Our family team have a strong network of contacts in a number of countries, and our firm is a member of the Multilaw network. It will often be necessary to obtain legal opinions from lawyers in the relevant foreign jurisdiction, particularly on property law, tax, and enforcement. Finally, act promptly. International asset issues can take time to resolve. Early action protects against assets being moved, dissipated, or hidden, and allows your legal team to take protective measures where necessary. It will also allow an early opportunity to consider which jurisdiction and country’s legal system will strategically suit the determination of a case.
Conclusion
A divorce involving international assets can be more complex than a purely domestic case, but with the right advice and early preparation, it is entirely manageable. Scottish law provides a clear framework for fair division of matrimonial property, including assets held abroad. The key is to engage specialist legal support at the earliest opportunity, be transparent about your financial position, and plan strategically for the challenges that cross-border assets present. If you would like to discuss your circumstances in confidence, our family law team is here to help.
