Tuesday, 02 January 2024 12:17 GMT

Woman Gets Nearly Dh100-Million Divorce Settlement Will Be Valid Even In Case Of Death


(MENAFN- Khaleej Times)

Ex-husband also ordered to pay more than Dh40 million as court seals full financial settlement in one hearing
    By: Haneen Dajani

    The Abu Dhabi Civil Family Court has turned a divorced couple's negotiated financial settlement into a single enforceable court order containing a worldwide 'clean break.'

    This means neither party can bring further financial claims against the other in any jurisdiction, including claims against the other's estate after death. In practical terms, the couple have agreed that once this settlement is carried out, there should be no second fight years later over who gets what from the marriage.

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    The settlement - which nears Dh100 million in value - says that the wife keeps properties in three countries, a supercar, a multimillion-dirham collection of jewellery and watches, and receives more than Dh40 million in cash.

    Stay up to date with the latest news. Follow KT on WhatsApp Channels. Why is this court order important?

    Byron James, a legal advocate involved in the case, told Khaleej Times that this is what makes the order significant.

    “The release is drafted to travel with the parties wherever they go,” James said.

    It is also intended to travel beyond their lifetimes. The order expressly covers claims against each other's estates after death, a provision James said was designed to ensure the financial dispute cannot simply resurface after one party dies.

    “It matters because, without it, a settlement could in theory be reopened by an estate or heirs after one party's death, undermining the finality both parties bargained for while they were both alive and represented,” he said.

    It should be noted that the couple did not simply sign a private agreement and walk away. The Abu Dhabi Civil Family Court attached their settlement to its hearing minutes and gave it“the force of an executive deed”.

    That means the agreed payments are backed by an enforceable court order rather than remaining a private promise between the former spouses.

    The lump sum is to be paid in fixed instalments by cheque or bank transfer to an account nominated by the wife.

    James said this distinction is important because a party who fails to honour an instalment does not leave the other side having to establish the underlying agreement all over again through a fresh lawsuit. Instead, the financial obligation is already contained in the enforceable court order.

    The couple also appeared personally before the court, in proceedings conducted in English, and confirmed that they understood and agreed to the terms.

    Nearly Dh100-million settlement

    The couple had been married for more than a decade before obtaining a consensual civil divorce through the Abu Dhabi Civil Family Court.

    They then spent time negotiating a full financial settlement, with independent lawyers advising both sides, before bringing the agreement back to court.

    The wife will retain assets already held solely in her name, including real estate in several jurisdictions, jewellery, watches and personal belongings, as well as a vehicle. Her former husband is also required to pay her a lump sum of more than Dh40 million in fixed instalments.

    The publicly available six-page judgment has redacted the parties' names and individual financial figures, but lists the broad categories of assets covered by the settlement. James confirmed that the settlement reaches into eight figures and involves assets spread across several countries, but declined to give a figure-by-figure breakdown because doing so could risk identifying the anonymised couple.

    The total value of the settlement, including the assets retained by the wife and the lump sum, approaches Dh100 million.

    Divorce settlement discussions

    The judgment records that the husband gave full and frank disclosure of his worldwide assets and liabilities, while the wife disclosed her own financial circumstances, including properties, cash holdings and personal belongings held solely in her name. The wife also confirmed that she had been financially dependent on her husband during the marriage and had no independent income or occupation.

    Both parties had independent legal advice and confirmed that they had enough time and information to consider the terms.

    They told the court they entered into the settlement freely, without undue influence, duress or pressure, and that they considered the terms fair and reasonable.

    “The recitals are not decoration; they are the armour,” James said.

    They create a detailed record showing what each party disclosed, what legal advice they received and that they understood and freely accepted the deal.

    “High-value settlements like this one survive on that drafting discipline as much as on the substance of the split itself,” he said.

    Why the agreement was made so difficult to challenge

    A divorce settlement can sometimes be challenged even after it has been agreed or made into a court order.

    In England, for example, the Supreme Court has dealt with cases in which financial settlements were later challenged after allegations of fraud or serious non-disclosure emerged. In Sharland v Sharland, the court allowed a challenge to proceed after the wife discovered that her husband had failed to disclose plans that could substantially affect the value of his company.

    In Gohil v Gohil, the Supreme Court also dealt with a challenge to a financial order based on alleged material non-disclosure by the husband.

    That helps explain the unusually detailed safeguards built into the Abu Dhabi settlement.

    A worldwide clean break

    The order describes the agreement as a“full, final, and worldwide settlement and release” of the parties' financial claims. James said the concept is similar to an English-style 'clean break', although UAE legislation does not itself use that phrase.

    The order states that neither party can bring further financial claims against the other in any jurisdiction.

    This does not mean the Abu Dhabi court can physically prevent a foreign court from receiving a claim, James said. Rather, the settlement gives the parties a clear, court-backed agreement to rely on if someone attempts to revive the same financial dispute elsewhere.

    What the case means for international couples

    The case is particularly relevant to couples whose lives and wealth span multiple countries.

    The settlement covers property and assets in different jurisdictions, yet the couple were able to negotiate the financial terms and have them incorporated into a single Abu Dhabi court order.

    James said the mechanism can be attractive to internationally mobile couples because it combines a negotiated settlement with the enforcement status of a court order.

    He cautioned, however, against describing this as the first such case before the Abu Dhabi Civil Family Court. The judgment does not claim to be a case of first impression, and James said he did not have a systematic count of every settlement ratified by the court in this form.

    “What is fair to say is that this is an unusually clean and complete example of the mechanism,” he said.

    For couples seeking a similar level of finality, James said the process is as important as the eventual financial deal.“Full and frank disclosure has to come first, from both sides, properly documented,” he said.

    Each party should have independent legal advice, with enough time and information to consider the terms.

    The settlement should then clearly set out the financial claims being resolved, including the worldwide release and provisions dealing with estates, before being brought before the court.

    “Skip any one of those steps and the finality the parties think they have bought becomes exactly the kind of thing a later court challenge can unpick,” he said.

    In this case, the result is a financial split designed to leave little unfinished business: the wife keeps the assets in her sole name, receives the agreed lump sum, and both sides have agreed to permanently close their financial claims against each other across jurisdictions and, remarkably, even after death.

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Khaleej Times

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