Same couple, Different country, Different outcome

This month, the South Korean courts awarded Lee Hwa-jin approximately 2.55 trillion won (US$1.8–1.9 billion) on her divorce from Kwon Hyuk-bin, the billionaire founder of Smilegate. It's the biggest financial divorce settlement the country has ever seen.

It's a substantial award. Of the divorce settlements publicly reported worldwide, only Bill Gates' and Jeff Bezos' are bigger.

No single model

Settlements on this scale are a useful reminder that the outcome of financial claims on divorce can vary significantly from one country to another. Media coverage tends to focus on the size of an award. But the legal principles used to reach it can differ dramatically between jurisdictions.

There is no single model for dividing wealth on divorce. Some legal systems put more weight on legal ownership. Others focus on what each party contributed during the marriage, or on their future needs. In some, sharing marital property is central. Cultural, economic and social factors all shape a country’s legal system, which decides what a fair outcome looks like.

This matters most when a couple could resolve their financial claims in more than one jurisdiction. The same couple, with the same assets and the same family circumstances, could receive very different outcomes depending on which legal system applies. Understanding the different approaches becomes incredibly important, and it usually takes both expert knowledge and quick action.

How England and Wales approaches it

In England and Wales, the family courts have a wide discretion when resolving financial claims on divorce. The court considers all the circumstances of the case: each party's financial resources, needs, obligations and responsibilities; the length of the marriage; the contributions each spouse has made; and the welfare of any minor children, which remains the court's first consideration.

The starting point is that matrimonial assets should be shared equally. But the court can depart from equality where fairness, or a spouse's financial “needs”, requires it.

If you've already divorced abroad

England and Wales can also offer a potentially important remedy to some people who have already divorced overseas. Under Part III of the Matrimonial and Family Proceedings Act 1984, a former spouse may be able to seek financial relief here where a foreign divorce has left them without adequate provision and there is a sufficient connection to this jurisdiction.

These applications are relatively specialised, and the court's permission is needed before a claim can proceed. But they can reflect the English courts' willingness to look at whether a fair financial outcome has been achieved overall.