The wealth implications of divorce cases in England and Wales came under the spotlight again yesterday after the UK’s highest court, in a groundbreaking case, upheld a court decision that more than doubled a woman’s original divorce settlement in Nigeria, prompting criticism from Withers, the law firm.

The Supreme Court gave judgment on an appeal by Sikirat Agbaje against a previous decision of the Court of Appeal that had overturned a financial award made by the High Court following her Nigerian divorce.

The ruling was criticised by Withers, the international law firm, for causing a potentially dangerous precedent in making England a potential soft target for estranged spouses seeking higher payouts.

“This decision rides a coach and horses through the doctrine of comity, affording a sense of courtesy to the decisions of friendly foreign Courts.  It smacks of our colonial past and is at odds with our treatment of our European neighbours, particularly when a not dissimilar case involving Italy called Traversa v Freddi resulted in the opposite conclusion,” said James Copson, a partner in the family team at the firm.

It is the first time the Supreme Court considered the circumstances in which a spouse may seek an additional financial award in England where the divorce has already been concluded elsewhere, according Withers.

The case adds to a number of rulings concerning divorce. Uncertainty about the outcomes of big-money divorce cases in England and Wales has increased after a court in February ordered a divorcee to pay her ex-husband £5 million (around $7.7 million) to cover losses from the credit crunch. Last July, the Court of Appeal in London ruled that a pre-nuptial agreement made overseas is still valid in the UK.

Foreign couples can seek adjustments to terms of divorce cases in English law, Withers says. Under the Matrimonial and Family Proceedings Act 1984, if a marriage has been dissolved in a foreign country and the divorce is recognised as valid in England and Wales, either spouse may apply to the English Court for an order for financial relief. 

Mr and Mrs Agbaje were married for 38 years; both are of Nigerian origion but they owned a home in England. They spent most of their married life in Nigeria, separating in 1999. Mrs Agbaje moved to London, and then in 2003, she brought divorce proceedings in the Nigerian courts.

The Nigerian Court awarded her a lump sum of about £21,000 plus a property worth about £83,000. Mrs Agbaje brought proceedings in England under the 1984 Act. The English court awarded her another £275,000, but that judgement was in turn overturned by the Court of Appeal. However, the Supreme Court yesterday upheld the original decision to award her the additional sum.

“In allowing Mrs Agbaje’s appeal this may give a green light to other dissatisfied foreign divorcees to claim a second bite at the cherry in England, which is widely accepted as a generous jurisdiction.  This could be a very influential decision,” said Jayne Glennon, a solicitor at Withers.