Property Adjustment Orders and International Assets: What You Need to Know

In an increasingly globalised world, it’s not uncommon for individuals to own assets in multiple countries. When a relationship ends, dividing these international assets can add complexity to an already challenging process. Understanding how property adjustment orders work when international assets are involved is crucial for ensuring a fair division.

Understanding Property Adjustment Orders

Property adjustment orders are court directives used primarily in the context of divorce or civil partnership dissolution to redistribute property owned by the parties. These orders specifically allow for the transfer of ownership of properties, adjusting rights and responsibilities to achieve a fair settlement.

The Challenge of International Assets

When international assets are involved, property adjustment orders must account for various legal systems and potentially conflicting regulations. Here are several key considerations:

1. Jurisdiction Issues:

Determining the appropriate jurisdiction is essential. Courts in England and Wales typically have authority over property within their borders but dealing with foreign property requires understanding the laws of the country where the asset is located.

2. Recognition of Orders:

Not all countries automatically recognize property adjustment orders issued in England and Wales. It may be necessary to have the order recognised and enforced in the foreign jurisdiction, which can require additional legal proceedings.

3. Double Taxation and Legal Restrictions:

Different countries have varying tax laws and legal restrictions that can impact the division and transfer of property. Understanding these implications is vital to avoiding incurring unexpected tax liabilities or penalties.

4. Valuation of International Assets:

Accurate valuation of international assets can be complicated by fluctuating exchange rates and differing property market conditions. Securing professional valuation advice can provide clarity and ensure fair division.

Steps to Navigate the Process

1. Seek Specialist Legal Advice:

It’s imperative to consult with legal experts experienced in international family law. They can provide guidance on jurisdictional issues and liaise with foreign legal professionals as necessary.

2. Collaborate with Financial Advisers:

Engage with financial advisers both at home and abroad to understand tax implications and ensure that asset division optimally benefits both parties financially.

3. Mediation and Alternative Dispute Resolution:

Using mediation or other forms of dispute resolution can facilitate agreement and minimise the need for contentious court proceedings, especially when multiple jurisdictions are involved.

4. Prepare Thorough Documentation:

Complete and accurate documentation of assets, including proofs of ownership and valuation reports, will support the smooth processing of property adjustment orders.

Conclusion

Navigating property adjustment orders involving international assets demands careful consideration and specialised knowledge. By understanding the complexities and seeking the right professional guidance, individuals can work towards achieving a fair and equitable resolution. As cross-border relationships and ownerships become more commonplace, enhancing familiarity with these legal processes is increasingly essential.

At Alexander JLO we have decades of experience of dealing with divorce and assets both in the UK and overseas. We have links with many legal and accountancy firms in other countries who regularly assist us in finding solutions to jurisdictional issues when it comes to property division on divorce. Why not contact us through the button on the right or call on +44 (0) 207 537 7000 for a free, no obligation consultation and see what we can do for you?

This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 3rd April 2025 and is correct at the time of publication. With over forty years of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. He is widely regarded as one of London’s leading divorce lawyers. His profile on the independent Review Solicitor website can be found Here