Non-dom divorces in the pipeline under new FPR

Family Law Week, April 2008

A new type of online "non-dom" divorce could be created when the new Family Proceedings Rules are implemented, Family Law Week can reveal. Sources close to the drafting committee indicate that they are considering the proposal, prompted by the growing realisation that the English courts could become a significant income generator if the divorce process is opened up to wealthy non UK domiciled individuals. The Government is keen to get a head start on other tax haven jurisdictions, said to be considering similar arrangements, and retain its position as "divorce capital of the world".

Under the proposed rules anyone, regardless of their habitual residence or their place of marriage, could elect to become subject to English matrimonial law through signing a prescribed "Non-domiciled Divorce Agreement" before they get married. To make the agreement enforceable, both parties would have to sign an undertaking that English legal advice has been taken prior to entering into the agreement. The signed agreement would then have to be to be lodged at the Principal Registry.

It is envisaged that most of the proceedings will take place online, given the success of the Money Claim Online service, in an attempt to keep costs manageable although either party could elect to pay for court time if they wish to appear in person before the judge. Only family lawyers registered with an appropriate body in England and Wales would be able to advise in such cases but they would first need to gain formal accreditation as a Non-Domiciled Divorce International Expert. A website would be created – noddie.org – which would list all accredited specialists, set out the procedure and provide an online proforma agreement.

A consultation on these rules is due to close on 1st April.