Court rules on sale of £42m home and luxury yacht in divorce case

A high net worth divorce case has resulted in a ruling for the sale of a £42 million family home and a €35.5 million luxury yacht.

Amy Fallows Senior Associate Solicitor & Head of our Family Law team reports on this case.

The case centred on competing applications from the husband and wife, who have three children.

The husband sought to terminate the wife’s home rights under the Family Law Act 1996, with the intention of selling the family home. Meanwhile, the wife applied for an order to sell the yacht, arguing that the proceeds should be used to pay off the mortgage on the property.

The couple’s financial situation had shifted dramatically since their separation.

The wife and children remained in the matrimonial home, while the husband moved into rented accommodation. The home, valued at £42 million, was under a £27 million mortgage.

The husband claimed his business interests, once worth £565 million, had been devastated by war, leaving him with a reported net worth of minus £32 million. He anticipated that the mortgage, due for renewal in August 2024, might not be extended, or would be renewed only to allow an orderly sale of the property.

The wife opposed the sale of the home, claiming a beneficial interest in the property.

Under the law, if she had such an interest, her home rights could not be terminated, and the property could not be sold. However, the court found that she did not have a beneficial interest, as she had not originally asserted this in her financial disclosures.

Her claim only emerged after the husband’s application to sell the property.

Additionally, the wife had signed a “consent to mortgage and waiver of rights” document in 2018, which waived any rights she might have had under the Family Law Act.

The wife also sought to control the sale of the yacht, valued at €35.5 million, arguing that the husband was not making serious efforts to sell it. The yacht was owned by a company in which the husband held a 90% share, and the company had debts of nearly €13.6 million.

The court rejected the wife’s application, noting that the yacht was owned by the company and not subject to the Married Woman’s Property Act. There was no evidence that the husband was deliberately delaying the sale, although it was clear he was seeking to secure the best price rather than selling quickly.

The court ordered that the family home be put on the market, with the wife and children allowed to remain in the property until its sale is completed or until suitable rental accommodation is arranged.

The wife’s home rights will continue temporarily but will end once the sale is finalised.

“The wife and children will be rehoused adequately,” the judge noted, with the husband offering to pay significant rent to ensure they are accommodated during the sale process.

For more information about the issues raised in this article or any aspect of family law please contact Amy on 01228 516666 or click here to send her an email.