The UK Court of Appeal recently ruled that Natalia Potanina, the ex-wife of Russian billionaire and oligarch Vladimir Potanin, can pursue her multibillion-pound financial claim in England. This decision not only revived one of the highest-value divorce battles on record but also underscored London’s status as a leading jurisdiction for international, high-net-worth divorce disputes.
The Potanina Case
Natalia and Vladimir Potanin married in Russia in 1983 and lived there throughout their 30-year marriage. When their divorce was finalized in Russia in 2014, Natalia received a settlement of approximately $41.5 million—less than 1% of the couple’s estimated $20 billion fortune. Most of Vladimir’s wealth was held in trusts and corporate structures that Russian courts did not consider marital assets.
In 2017, Natalia obtained a UK investor visa and purchased a property in London, establishing a connection to the country. In 2018, she applied for permission to seek financial relief under the Matrimonial and Family Proceedings Act 1984. The High Court initially dismissed her application in 2019, citing concerns over “divorce tourism,” but the Court of Appeal overturned that decision. It recognised that she had a “real and meaningful connection” to the UK, allowing her to proceed with her claim.
This case highlights the importance of jurisdiction—the authority of a court to hear a case. Where a divorce is filed can dramatically affect financial outcomes, including the division of assets, maintenance, and enforceability of court orders. English courts, known for their fairness, transparency, and rigorous asset disclosure rules, can offer significantly more advantageous outcomes for financially weaker spouses compared with some other jurisdictions.
Divorce Tourism: What It Is and Why It Matters
“Divorce tourism” refers to the practice of seeking to file for divorce in a jurisdiction thought to be more favorable for financial settlement. Typically, it involves wealthy spouses relocating temporarily or establishing minimal connections to a jurisdiction to take advantage of perceived legal advantages. Critics argue that this can place strain on courts and create perceptions of opportunistic filings.
The Potanina case sits at the center of this debate. While some commentators labeled her attempt as “divorce tourism,” the Court of Appeal emphasised that she had established a genuine connection to the UK. This distinction is crucial: courts are increasingly careful to differentiate between opportunistic forum shopping and legitimate claims where a meaningful link exists.
The rise of international divorce cases like this one suggests courts will face more jurisdictional challenges in the future. They may refine the tests for connection to ensure only those with genuine ties can bring proceedings, balancing fairness for individuals against concerns about opportunistic filings.
For clients with international elements to their marriage, understanding jurisdiction is essential. The choice of jurisdiction can determine not only the legal framework that applies but also the likely financial outcome. Establishing a connection to a favorable jurisdiction—through residency, property ownership, or other legal ties—can significantly affect entitlement to assets and spousal support. The Potanina case is a vivid example of how early strategic decisions about jurisdiction can have multibillion-pound consequences.
How can we help
The Potanina v Potanin case demonstrates why London remains the world’s leading venue for high-value divorce cases. It also underscores the growing significance of jurisdiction and the careful scrutiny courts apply to claims that may appear to involve “divorce tourism.” For anyone navigating international divorce, understanding the legal landscape and acting strategically from the outset can make the difference between a modest settlement and a transformative financial outcome.
At E J Coombs, we are family law specialists and can provide you with tailored advice from the outset about financial remedy and the important of jurisdiction. Contact us today using the links below.
