An important UK ruling yesterday in divorce proceedings between an oil tycoon and his estranged wife could have a significant impact for other couples in a similar situation.
Mrs Prest argued that she was entitled to significantly more than she was being offered by her former husband. The case escalated all of the way to the House of Lords, the UK’s supreme court, and centred around assets belonging to Mr Prest’s numerous companies. Mrs Prest was successfully able to convince judges that any properties at the centre of the dispute should be transferred to her.
The judges were quick to warrant however that this case should not be used as general guidance and was very fact specific.
However lawyers acting on behalf of Mrs Prest are confident this ruling could pave the way for others in a similar situation to their client and prevent individuals hiding assets behind a “corporate veil”. Other UK lawyers welcomed the decision, heralding it a success for common sense.
In our opinion this certainly does not represent an unusual ruling as far as Thailand divorce law goes. We have come to expect Courts to pierce corporate veils to enable the recovery of hidden assets and to strike down the use of nominees acting as agents for principals to recover hidden assets, provided it can establish that the party is the beneficial owner even if not the legal owner.
What appears to have been overlooked by the press but in our opinion is an equally as important issue is what effect does the UK judgement have on assets held outside its jurisdiction? Without a treaty regarding reciprocal enforcements of civil judgements, most foreign courts are not bound to follow the judgements of others. Further even a treaty for reciprocal enforcement exists, who is to say it will extend to divorce cases? Thailand for example has no treaty for reciprocal enforcement of foreign court judgements with any other nations. Therefore the most that can be done in Thailand is use a foreign judgement as evidence.
This case does however serve as a helpful reminder of how important it is to protect assets during Thailand divorce law. It demonstrates the lengths individuals are prepared to go to, to hide assets away from the divorce proceedings. It is important that individuals who find themselves in this very situation are fully aware of what all of the marital assets are to ensure they receive their full entitlement during proceedings.
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