Billionaire divorce proceedings: “Truth and transparency must be the cornerstones of divorce proceedings”

London High Court has ruled in favour of Tatiana Akhmedova, the wife of a Russian billionaire, following claims that he and their son had concealed his wealth in order to diminish the settlement amount she would receive.

Following this ruling Claire Ward, a Partner at Langleys Solicitors, said: “This case highlights the importance of transparency in legal proceedings, demonstrating the clear consequences to any party who tries to impede the Court’s role in helping two parties reach a fair settlement.

“The Court has made it very clear following landmark decisions by the Supreme Court in 2015, that if it is found there has been either a material non-disclosure or fraud before a final agreement or Order is made, these can be set-aside. Similarly, as in this case, if a party takes steps to try and avoid complying with an agreement or order, the Court will take a dim view of this and impose the necessary sanctions to ensure the obligations under the original order are fulfilled.

“Truth and transparency are the cornerstones of family law, and the Court has a wide range of powers available to ensure there is full and frank disclosure during the proceedings and will seek to redress matters if it later transpires there has been misrepresentation or fraud. The Court will also impose appropriate sanctions to enforce orders, particularly where a party is found to have been dishonest and has failed to behave honourably, as we have seen in the case of Mrs Akhmedova.

“To ensure there is certainty of a final agreement or order, and to avoid potential sanctions and further costly court proceedings, it is essential to provide full and frank disclosure and to comply with Orders made by the Court.

“In addition to the financial and emotional repercussions of concealing assets or being dishonest about your affairs, the guilty party could also be in contempt of Court and proceedings could be brought against them under the Fraud Act 2006, resulting in imprisonment or a significant fine.

“If you believe assets have not been properly disclosed during proceedings, it is worth remembering that you would need to present new evidence that demonstrates a material non-disclosure by the other party which, if known at the time of the final agreement or order, would have changed the outcome.

“If a party does believe that their spouse is hiding assets during matrimonial proceedings, they have the option of appointing a forensic accountant who can assist in tracing and valuing assets and considering issues such as liquidity of assets and whether transfers to a third party appear legitimate. This use of a forensic expert can be particularly beneficial in cases involving trusts and company assets.”