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England and Wales High Court (Family Division) Decisions
You are here: BAILII >> Databases >> England and Wales High Court (Family Division) Decisions >> G v B (Rev 1)  EWHC 3414 (Fam) (07 November 2013)
Cite as:  EWHC 3414 (Fam)
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This judgment is being handed down in private on 7 November 2013 It consists of 17 pages and has been signed and dated by the judge. The judge hereby gives leave for it to be reported.
The judgment is being distributed on the strict understanding that in any report no person other than the advocates or the solicitors instructing them (and other persons identified by name in the judgment itself) may be identified by name or location and that in particular the anonymity of the children and the adult members of their family must be strictly preserved.
Strand, London, WC2A 2LL
B e f o r e :
|- and -
Ms Rebecca Bailey-Harris (instructed by Miles Preston) for the Respondent
Hearing dates: 21, 22, 23, 24, 25 October 2013
Crown Copyright ©
Mr Justice Blair:
The establishment of the S foundation
"We, the undersigned foundation council hereby confirm that the [S] Foundation was established on March 30, 2004 and that it is a discretionary and irrevocable foundation.
The [S] foundation was set up by Mr. [X] on behalf of Mr [MB]who is considered as the effective founder pursuant to Liechtenstein Law.
The potential beneficiaries are all descendants of Mr [MB].
The directors of [S] Foundation have to have regard to the discretionary Beneficiaries appointed now or in the future.…….."
Mr X was a long standing friend of Mr MB , and was his executor.
The wife's non-disclosure case
(1) In his Form E, he did not mention the existence of a bank account held with Leumi Private Bank in Switzerland. His explanation for not disclosing this earlier is that the account was only a conduit, though the Rawlinson & Hunter report of 8 February 2013 shows that in recent years, as well as the placement of funds on fiduciary deposit, the account was also used to invest in bonds.
(2) On 3 October 2013, he disclosed an account of FI at Leumi Private Bank. He said he was told about it while visiting the bank in August 2013 at which time the balance was US$513,207. I agree with the submissions on the wife's part that his evidence as to how the account came to light, and why it was disclosed so late, is not convincing. On the other hand, the wife did not accept that this account was the same as an earlier account held at Bank Safdie. On the third morning of the hearing, confirmation was obtained from Leumi that the accounts were the same, and had been renumbered following the merger of the two banks, which was the explanation the husband had already given.
(3) In his Form E, he did not disclose investments that he made in a real estate project in Bulgaria though a company called S. His wife was aware of the project, because he visited Sofia frequently for a while, and I agree with her submissions that the way he dealt with this investment in answer to her questionnaire was inadequate. However, he says (and I accept) that he lost his personal investment in the project of €10,000 (and he says that ER lost €400,000). A letter of 16 July 2013 is to the effect that the real estate company currently has no activities, and I see no reason not to accept that.
(4) There were two relatively small sums repaid from a JP Morgan fund in February and December 2007 which were not disclosed in the Form E, but this are not greatly material.
The open proposals for settlement
Section 25 factors
(a) S Foundation
(b) The former matrimonial home
(c) Income and earning capacity
(e) Conclusion on financial resources
|Estimated sale price of FMH||£6m|
|Costs of sale||(£150,000)|
|Estimated net sale proceeds of house||£2,356,571|
|Assets in S Foundation||£4,025,605|
|Net in W's bank accounts etc||£83,034|
|Net in H's bank accounts etc||£117,832|
|Potential HMRC tax liability||(£425,000)|
|TOTAL NET ASSETS||£6,158,042|
|Total net assets if potential tax liability is not quantified and risk of potential liability placed on H||£6,583,042|
Financial needs and obligations
Pre-breakdown standard of living