Piercing The Corporate Veil - Claims Against A Family Company In Divorce Proceedings

A landmark family decision is likely to encourage the protection of family wealth through corporate structures. Robert Worthing, Partner and Head of our Family Team looks at this in further detail.

In the recent Court of Appeal decision of Petrodel v Prest, it was held that it is not possible for the Court to transfer company held assets upon divorce merely in the interests of justice. Similarly, the Court cannot attribute assets of a company to a shareholding spouse in the absence of relevant impropriety by that spouse.

Mrs Prest is apparently seeking an appeal to the Supreme Court. Pending that appeal, the Court will not simply be able to look to the value of a...