After almost 24 years of litigation, what is believed to be England’s longest-running divorce case has finally come to an end. The case of Gohil v Gohil has attracted significant attention, not only because of its extraordinary duration, but because it highlights one of the most important obligations in any financial remedy case: full and frank financial disclosure.
While very few divorces last more than two decades, the issues raised by this case are relevant to anyone going through a divorce, regardless of the size of their assets.
The background
Mr and Mrs Gohil separated in 2002. Their financial claims were settled in 2004, with Mrs Gohil receiving a lump sum of £270,000, maintenance and the family car. At the time, the court believed it had been given an accurate picture of the family’s finances.
However, Mrs Gohil later alleged that her former husband had failed to disclose the true extent of his wealth. In 2007, she applied to have the financial order set aside on the grounds of material non-disclosure. Years of litigation followed, alongside criminal proceedings in which Mr Gohil was convicted of money laundering and fraud.
The Family Court was eventually required to determine which assets genuinely belonged to Mr Gohil, which represented the proceeds of crime, and which could properly be considered when deciding Mrs Gohil’s financial claims.
Following that lengthy process, Mrs Gohil was awarded assets worth approximately £6.6 million, bringing one of the most complex financial remedy cases in English legal history to a close.
Why does this matter?
For most separating couples, the figures involved will be very different. However, the legal principle is exactly the same.
When resolving finances following a divorce, both parties have a legal duty to provide complete and honest financial disclosure. This is not optional. The court relies upon that information when deciding whether a financial settlement is fair.
Disclosure usually includes details of:
- Property and land
- Savings and investments
- Bank accounts
- Pensions
- Businesses
- Income
- Debts and liabilities
- Overseas assets
The process is designed to ensure that both parties, and ultimately the court, have a clear understanding of the family’s financial position.
What happens if someone hides assets?
The Gohil case demonstrates that failing to disclose assets can have serious and long-lasting consequences.
The court expects parties to be open and transparent throughout financial remedy proceedings. Where assets have been deliberately concealed or financial information has been misrepresented, the court has powers to investigate the position and, in appropriate cases, revisit an earlier financial order.
Although finality is an important principle in family law, it should not be achieved through dishonesty.
Hidden assets are not always straightforward
Modern finances are often far more complicated than simply owning a house and having a savings account.
Assets may include company shares, investment portfolios, overseas property, trusts or even cryptocurrency. In some cases, wealth may be held through family members or corporate structures, making it more difficult to establish who truly owns an asset.
Where concerns arise, the court has a range of powers available. Depending on the circumstances, parties may be required to answer detailed questions about their finances, disclose further documentation or instruct independent experts such as forensic accountants to assist with identifying and valuing assets.
The importance of seeking legal advice early
Most divorces are resolved without the level of complexity seen in the Gohil case. Nevertheless, if you believe your former spouse has not provided complete financial disclosure, it is important to obtain legal advice as soon as possible.
Equally, if you are involved in financial remedy proceedings yourself, you should ensure that your disclosure is complete, accurate and up to date. Attempting to conceal assets can significantly increase legal costs, prolong proceedings and, in some cases, lead to financial orders being challenged years after they were made.
How we can help
Financial settlements are often one of the most significant aspects of a divorce. Whether your case involves the family home, pensions, business interests or concerns about financial disclosure, obtaining clear legal advice at an early stage can make a significant difference.
At EJ Coombs Solicitors, our team provide practical, straightforward advice to help clients understand their rights and work towards a fair financial settlement. If you would like to discuss your circumstances, please contact us to arrange an appointment.
