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A recent ruling in Jersey has given Jersey a boost and may have a domino effect for other tax havens in protecting a party to a divorces assets.
The judgment on the pursuit of an Indian jewellery tycoon by his ex-wife could make it more difficult for estranged spouses to get their hands on off-shore wealth, according to divorce experts.
It comes despite numerous orders in English divorce courts that have made off-shore trustees pay millions to former spouses.
The case in Jersey - known as Mubarak v Mubarak - has laid bare the conflict created when former partners attempt to use English divorce orders to access money in tax havens such as the Isle of Man, Britain's Caribbean territories and the Channel Islands. Jersey's Royal Court ruled last month that assets held in off-shore trusts could only be given to ex-spouses if the trustees had that power.
It is in stark opposition to Charman v Charman when last year the Court of Appeal last year upheld the award of £48m to the ex-wife of insurance magnate John Charman. He has since been battling attempts to make him take money for the payout from a trust in Bermuda.
Mark Harper, partner at City law firm Withers, said the ruling could make wealthy people place money in tax havens to try to ring-fence it from payouts. He told the Financial Times: 'The Jersey court is saying stop meddling in its affairs.'
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