International Relocation and Divorce Financial Settlements

Moving to another country can alter the financial assumptions upon which a divorce settlement is based. Laurus advises clients on the financial consequences of international relocation, whether the move is being considered before an agreement is reached or existing arrangements are already in place. Speak to our specialist family solicitors and arrange an initial consultation to understand how a proposed relocation could affect your financial position.

Relocation before financial proceedings

The court will look beyond the fact that the relocation has taken place and examine its financial consequences. A spouse cannot necessarily increase their claim simply by choosing a more expensive country or abandoning suitable employment without a reasonable explanation. Equally, it would be wrong to assume that every move producing higher costs is financially irresponsible. The relocation may have been necessary because of immigration status, employment, family support, or arrangements for the children.

A proposed move during proceedings

Relocation during financial proceedings can make a case more difficult because it throws in additional considerations such as budgets that may need to be revised, property proposals, and assumptions about future income.

If financial proceedings are already underway, relocation may also affect case management. Documents might need to be obtained from overseas institutions, and a party may need arrangements for attending hearings remotely or travelling to England. These procedural costs should be anticipated rather than allowed to disrupt the case later.

Relocation after a financial settlement

Where an international move takes place after a final financial order, the existing terms do not automatically change. A spouse who has agreed to retain a particular home or accept a fixed lump sum cannot ordinarily reopen those capital arrangements simply because they later decide to live abroad.

The position may be different where the order includes ongoing spousal maintenance. Periodical payments can sometimes be varied if there has been a material change in circumstances, and the court may consider changes in income and need, but relocation does not guarantee that maintenance will be increased or reduced. The reasons for the move, the financial consequences, and whether those consequences were reasonably foreseeable may all be relevant.

Child maintenance requires separate consideration. The Child Maintenance Service may have jurisdiction in some international situations but not others, depending upon where the parents live and, in certain cases, the nature of the paying parent’s employment. Court proceedings or reciprocal international arrangements may be required where the statutory scheme cannot deal with the case.

Travel and contact costs involving children

When one parent relocates with the children, maintaining their relationship with the other parent may require international flights and longer stays. The cost can include fares, transfers and accommodation, as well as travel insurance or the expense of an accompanying adult where a child is too young to travel alone.

The financial arrangements should identify who will meet these costs. It may be appropriate for the relocating parent to bear a greater share where the move creates the expense, although an equal division or an income-based contribution may be fair in other circumstances. Although not every possibility can be predicted, clear arrangements can reduce repeated disagreement.

Evidence supporting relocation-related claims

A financial claim connected with relocation should be supported by evidence proportionate to the amount in dispute. Property particulars and rental listings may establish housing costs, while mortgage illustrations can show whether borrowing is realistically available. A proposed employer may provide a contract or written offer setting out salary and benefits.

A detailed budget should identify the expenditures likely to change after the move; school information, childcare quotes, and health insurance terms can involve significant new expenses. Where employment prospects are uncertain, evidence from recruitment agencies or professional regulators may help establish the likely timescale for finding work.

Documents should also reveal benefits that reduce the claimed need; employer-provided accommodation or private medical cover must be included, as should free housing offered by relatives where that arrangement is expected to continue. Complete evidence gives negotiations a more reliable foundation and reduces the risk that the proposed move will be dismissed as aspirational.

Relocation as part of settlement negotiations

Even though a credible relocation proposal doesn’t guarantee a preferred or specific outcome for either spouse, it can still positively affect negotiations. It may create an opportunity to reach a practical settlement, particularly where a property can be purchased more affordably abroad or the move will allow a spouse to become self-supporting.

Allocating additional capital to the relocating spouse could leave the other spouse without suitable housing in England, and while continuing maintenance might assist the move, it could restrict the paying spouse’s ability to fund regular contact with the children.

These issues should be tested through realistic calculations. Laurus can help clients compare alternative outcomes and identify where compromise is possible. Our aim is to produce an arrangement that can be implemented in both countries rather than one that appears balanced on paper but fails once the move occurs.

Contact us now to request a free consultation with one of our specialist family solicitors about international relocation and financial settlements.