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Court orders have to be obeyed and those who defy them can ultimately be sent to prison. Exactly that happened in one 'big money' divorce case in which an 83-year-old businessman repeatedly tried to thwart his ex-wife. Following the end of the former couple's 23-year marriage, the wife was awarded cash and assets, together worth £3.5 million, from a matrimonial pot totalling £9.4 million. The husband was, amongst other things, ordered to transfer to her his 100 per cent shareholding in a property company worth £1.6 million. Following that transfer, the...

When valuing a property for Inheritance Tax (IHT) purposes, is it legitimate to take into account its potential for enlargement or improvement – so-called 'hope value'? In a guideline ruling, the Upper Tribunal (UT) has answered that question in the affirmative. The case concerned a maisonette in an attractive residential area. The property was in need of updating and had potential for extension. After its owner died, HM Revenue and Customs valued the deceased's 88.4 per cent share in the freehold at £1,829,880. The son of the deceased appealed on...

If family members or friends are facing bankruptcy, it may be tempting to assist them in keeping their assets away from the clutches of creditors. The folly of such conduct was, however, strikingly revealed by a Court of Appeal case concerning a family clothing business. Shortly before he was declared bankrupt – and after a petition for his bankruptcy had been presented – a businessman transferred his minority shareholdings in three family companies to his brother. Some of the shares were later distributed to his three sisters. His trustees in...

One powerful reason why you should always seek legal advice before making your will is to ensure you meet your responsibilities to those who depend on you financially. In one case on point, the High Court effectively rewrote the will of a wealthy landowner who cut his long-term partner out of his £1.5 million estate. The couple had been living together as man and wife for over 40 years. When he was in hospital shortly before his death, aged 94, he had told her not to worry as she would...