“Tortuous” divorce case finally enables fair divorce award
The UK’s longest divorce battle has drawn to a close after a 23-year legal battle to find assets that the wife believed to have been hidden by her ex-husband at the time of the divorce.
Varsha Gohil filed for divorce from her husband, solicitor Bhadresh Gohil, in 2002, citing adultery and unreasonable behaviour.
At the time, she believed the figures her husband had put forward and accepted a settlement worth around £270,000 and retained the family’s Peugeot car.
However, she became suspicious of her ex-husband in 2011, when he was convicted of money laundering, forgery and conspiracy to defraud. Almost £28 million in assets were found to have been hidden through offshore companies.
The Supreme Court ruled in Mrs Gohil’s favour in 2015, asserting that spouses who fail to disclose assets should not benefit from their misconduct.
This decision reinforced that incomplete financial disclosure can justify reopening settlements, even years after divorce.
However, the Supreme Court ruling did not end the dispute, as competing agencies claimed that the frozen £28 million should not be treated as marital wealth.
Mr Gohil argued that the assets were not his, while the Crown Prosecution Service (CPS) maintained that the money represented the proceeds of crime and should be reserved for criminal confiscation proceedings.
In response, Mrs Gohil contended that at least part of the wealth had been generated through legitimate businesses during the marriage and, therefore, belonged in the matrimonial asset pool.
The complexity of tracing the assets and resolving the competing claims delayed a fresh High Court hearing until 2023.
At the hearing, the Judge found some assets had lawful origins and formed part of the marital estate, awarding Mrs Gohil £6.6 million.
Commenting on the case, Roger Isaacs, Forensic Partner at Milsted Langdon, said: “In its length and complexity, this case is unique, but the practice of attempting to hide assets from a spouse during divorce is not uncommon.
“While spouses are expected to make a full and fair disclosure during the initial stages of a divorce, some move money offshore or change the ownership of assets, in an effort to try and protect their wealth.
“Where this is exposed, often with the help of a forensic accountant, the courts can take appropriate action.
“This is an unusual case in terms of its length and specific circumstances, but it demonstrates how financial experts can assist with uncovering hidden assets so that a fair financial remedy order is achieved.”
