When Dynasties Crumble: How To (re)build Your Family

• Published date: 21 September 2022
• Subject Matter: Family and Matrimonial, Family Law, Divorce
• Law Firm: Withers LLP
• Author: Ms Sara-Jane Knock and Billy Ko

During the lockdowns and travel restrictions imposed on the world over the past two years, many of us have become acutely aware of the power of our families. Some of us have spent far more time with them than we ever thought (or wanted to be) possible.

In an ideal world, living in such close quarters would strengthen familial ties. However, for some, being so close for such an extended period of time has created the perfect breeding ground for resentment, animosity and sometimes deep hatred to flourish and thrive. The pandemic has created an environment for conflicts to fester and grow into more than just family squabbles and, in some cases, they have metastasized into something much bigger - divorce, disagreements within the family business or disputes over a deceased family member's estate. These are situations which can tear families apart.

International families often have multi-faceted businesses, assets and relationships and these are all subject to scrutiny following a trauma (be it personal or business related). In one case, we are acting for trustees of a sizeable BVI trust structure, with beneficiaries and assets located throughout the world. Unusually here, there are minor beneficiaries located in Hong Kong, but born via surrogates elsewhere, in respect of which we have had to tackle issues relating to their parenthood, as part of the restructuring exercise.
Protecting your interests and those of your family can help to minimize the potential impact and prevent further damage being inflicted on strained familial relationships.

A situation that we have seen all too often recently arose when a wife, who had been privy to her high-flying husband's business affairs, was planning to leave him. She and her eldest son (who worked with her husband to operate the family businesses), were aware of worldwide assets that her husband held in various jurisdictions and she was concerned that as soon as she filed for divorce he would transfer those valuable assets out of her reach. To prevent this, we worked together to obtain mirror freezing injunctions and Stop Notices on the same day in London and BVI to ensure that the divorce could proceed fairly, with an appropriate division of all the family's assets.

Another common catalyst for relationship breakdown are questions over succession. The management, ownership and benefit from familial trusts, estates and assets can cause rifts in relationships...