£120 Million Divorce Award: Why This Case Matters to More Than Just the Ultra-Wealthy
When headlines report a £120 million divorce award, it is easy to assume that the case has little relevance to most families.
However, whilst the figures involved in TP v TF [2026] EWFC 210 are extraordinary, the legal principles considered by the court arise in divorce cases across a wide range of financial circumstances. Issues such as trusts, family wealth, third-party assets and financial disclosure are not exclusive to the ultra-wealthy. They regularly feature in financial remedy proceedings involving far more modest assets.
Think a £120 Million Divorce Has Nothing to Do With You? Think Again
In TP v TF [2026] EWFC 210, the court ordered the husband to pay his wife approximately £120.4 million, with the parties reportedly spending around £6.5 million in legal fees between them.
Whilst most people will never encounter sums of this magnitude, the real significance of the case lies not in the amount awarded but in the approach the court took when assessing the parties’ financial circumstances.
The decision serves as an important reminder that the Family Court will look carefully at all resources available to each party when determining a fair financial settlement on divorce.
Looking Beyond Legal Ownership
One of the central issues in the case was whether wealth held through family trust structures should be taken into account when determining the husband’s financial resources. The husband argued that assets held within trusts should not be treated as matrimonial assets available for division. The court examined not only who legally owned the assets, but also the extent to which the husband could realistically access them.
This principle is not limited to high-net-worth families.
In many divorce cases, questions arise regarding:
- Family businesses operated through companies.
- Wealth held in trusts.
- Assets inherited from parents or grandparents.
- Financial support regularly provided by family members.
- Informal family loans.
- Property or investments held in another person’s name.
The court’s role is often to look beyond the paperwork and consider the reality of the situation. If a financial resource is genuinely available to a party, it may be relevant even if it is not held in their own name.
The Importance of Full and Frank Financial Disclosure
Another important feature of the case was the court’s criticism of the husband’s approach to presenting his financial circumstances. The judgment highlighted concerns regarding how certain trust interests had been disclosed and characterised during the proceedings. Every individual involved in financial remedy proceedings has a duty to provide full and frank financial disclosure. This obligation applies whether the assets involved are worth £120 million or £20,000.
Where there is uncertainty surrounding assets, income or financial resources, the court may draw conclusions from the available evidence. Attempts to minimise, conceal or downplay resources can result in increased legal costs, delays and more complex litigation.
Trusts, Inheritance and Family Wealth in Divorce
Trusts are often viewed as being untouchable during divorce proceedings. However, this case demonstrates that the position is more nuanced.
The court considered whether the husband could realistically benefit from trust assets if he sought assistance from the trustees. After reviewing the evidence, the judge concluded that a substantial part of the trust wealth was effectively available to him.
For many families, trusts may not involve hundreds of millions of pounds. Instead, they might include:
- Shares in a family business.
- Agricultural property.
- Investment portfolios.
- Funds established by parents or grandparents.
- Assets intended for future generations.
Where trusts exist, obtaining specialist legal advice can be crucial to understanding how those assets may be treated within financial remedy proceedings.
What Does This Mean for Divorce Cases Involving More Modest Assets?
The vast majority of divorces do not involve nine-figure fortunes. However, the same questions frequently arise, regardless of the value of the assets involved.
For example:
- What financial resources are available to each party?
- Can assets held by third parties be taken into account?
- Is ongoing family support likely to continue?
- How should inherited wealth be treated?
- How are trust assets considered by the court?
- Has each party provided complete and accurate financial disclosure?
These issues can significantly impact the outcome of a financial settlement, regardless of the size of the estate.
Why Early Legal Advice Matters
Financial arrangements following separation can quickly become complex, particularly where trusts, family wealth, inherited assets or business interests are involved.
Seeking legal advice at an early stage can help you:
- Understand your financial position.
- Identify assets that may be relevant to a settlement.
- Ensure full and accurate disclosure.
- Resolve disputes more efficiently.
- Protect your long-term financial interests.
The earlier advice is obtained, the better placed parties are to make informed decisions and avoid unnecessary disputes.
About the Author
Jane Auty is a Partner and Head of Family Law at Thornton Jones Solicitors. With over 25 years’ experience specialising exclusively in family law, Jane advises clients on all aspects of divorce, separation and financial matters, including complex and high-value cases involving business interests, pensions, trusts and agricultural assets. As a trained collaborative lawyer and member of Resolution, Jane is committed to helping clients achieve constructive and practical solutions to family disputes.
Frequently Asked Questions
Potentially. The court will consider whether trust assets are realistically available to either party and may take them into account when assessing financial resources.
Inherited assets are often treated differently from matrimonial assets, but they can still be relevant depending on the circumstances of the case.
It is the legal obligation on both parties to provide complete and accurate information about their finances during divorce proceedings.
In some circumstances, yes. The court will look beyond legal ownership and consider whether resources are genuinely available to a party.
No. Whilst this case involved substantial wealth, the underlying legal principles apply to divorce cases involving a wide range of asset values.
How Thornton Jones Can Help
If you are facing separation or divorce and have concerns about finances, trusts, inherited wealth, family businesses or financial disclosure, our specialist Family Law team can help.
We provide clear, practical and strategic advice tailored to your circumstances, helping clients navigate both straightforward and complex financial matters with confidence.
Whether your case involves significant assets or more modest family finances, our experienced solicitors can help you understand your position and work towards a fair outcome.
To arrange a confidential discussion with a member of our Family Law team, please contact Thornton Jones Solicitors today.
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The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
Impact of Transferring and Gifting Property to Relatives
Transferring or gifting property to relatives is a common discussion we, as private client lawyers, have with our clients, as many are not aware that it can come with significant financial, legal and tax implications.
Property can be transferred to a relative either by gifting it or selling it to them. Many people choose to transfer property to reduce inheritance tax liabilities or to help family members get onto the property ladder. However, it is important to understand that property transfers, particularly those involving gifts, are not always as straightforward as they might seem.
Before making any decisions, it is essential to understand the potential implications and seek professional advice to ensure the transfer achieves the outcome you intend.
Inheritance Tax Considerations
One of the most common reasons people consider transferring property is to reduce the inheritance tax (IHT) payable on their estate. However, this is an area that requires careful consideration. If you gift your property to a relative, such as your child, but continue to benefit from the property, for example by continuing to live there without paying a full market rent, the value of the property could still be treated as part of your estate for inheritance tax purposes. In addition, if you give away a property and pass away within seven years of making the gift, the value of the property may still be considered part of your estate for IHT purposes.
There are, however, exemptions for certain transfers. For example, gifts between spouses or civil partners are generally exempt from inheritance tax. If the property is transferred and you survive for seven years afterwards, the gift may no longer form part of your estate for inheritance tax purposes. However, if you die within that seven-year period, the recipient may face an inheritance tax liability depending on the value of the gift and the available inheritance tax allowances.
Capital Gains Tax
Capital Gains Tax (CGT) can also be an issue when transferring property to a relative, particularly where the property is not your main residence. If the property has increased in value since it was acquired, CGT may be payable on the gain. The tax is based on the difference between the property’s value when acquired and its value at the time of the transfer. Many people are surprised to learn that even where no money changes hands, HM Revenue & Customs can still treat the transfer as taking place at market value for CGT purposes. Seeking advice before making the transfer can help you understand any potential tax liabilities and avoid unexpected tax consequences.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is another potential cost when transferring property. If the transfer involves consideration, which could include money or anything else of value, SDLT may be payable. For example, if a property is transferred to a relative and they pay part of the property’s value, Stamp Duty may be due on that amount. Even where a property is gifted with no payment being made, SDLT can still arise in certain circumstances. This commonly occurs where the recipient takes responsibility for an existing mortgage secured against the property.
Other Important Considerations When Gifting Property
If you are considering gifting property to a relative, there are several practical factors to think about.
- Motivation – People often gift property to help family members onto the property ladder, provide long-term housing security, or reduce the value of their estate for inheritance tax purposes. Before proceeding, it is important to ensure your objectives are clearly understood and that the transfer achieves what you intend.
- Legal Ownership – The transfer of legal ownership must be properly documented and registered with HM Land Registry. Ensuring the correct legal procedures are followed is essential to avoid complications in the future.
- Family Relationships – Transferring property to a relative can have both emotional and financial consequences. While many transfers take place without issue, changes in family circumstances or relationship breakdowns can sometimes result in disputes. Discussing the proposed transfer openly and obtaining independent advice can help minimise misunderstandings later on.
What If There Is a Mortgage on the Property?
If the property being transferred has an outstanding mortgage, the transaction can become more complicated. In many cases, the mortgage lender’s consent will be required before the transfer can proceed. If the recipient is unable to take over the mortgage or obtain finance in their own name, the transfer may not be possible. Equally, taking responsibility for an existing mortgage could affect the recipient’s ability to obtain further borrowing in the future. Obtaining legal and financial advice at an early stage can help identify any issues before plans progress too far.
Could a Trust Be a Better Option?
In some circumstances, it may be more beneficial to place property into a trust rather than gifting it directly to a relative. Trusts can allow you to retain a degree of control over the property while ensuring that the benefits pass to chosen family members. There can be tax planning advantages associated with certain trusts, including opportunities to reduce inheritance tax exposure. However, trusts are complex arrangements and can involve ongoing legal, tax and administrative obligations. Professional advice is essential to determine whether a trust is suitable for your circumstances.
Property Transfers and Care Fees
Some people consider gifting property to relatives to reduce the value of their estate and minimise future care fees. However, this approach carries significant risks. Local Authorities have the power to investigate transfers of assets and may determine that a gift was made deliberately to avoid paying care fees. This is known as a deprivation of assets. Where a Local Authority reaches this conclusion, it may still take the value of the gifted property into account when assessing an individual’s ability to contribute towards care costs. For this reason, it is important to seek specialist advice before transferring any significant assets.
Frequently Asked Questions
Yes, but gifting your home can have inheritance tax, capital gains tax and care fee implications. Professional advice should always be obtained before proceeding.
Not necessarily. If you continue to benefit from the property or die within seven years of making the gift, the property may still be included in your estate for inheritance tax purposes.
Potentially. If the property is not your main residence and has increased in value, Capital Gains Tax may arise even where no money changes hands.
It can be. SDLT may be payable where the recipient takes on an existing mortgage or provides some form of consideration for the transfer.
In certain circumstances, a trust may offer greater flexibility and control. However, trusts are complex and professional advice should always be sought.
How Thornton Jones Can Help
Transferring or gifting property can have significant legal, financial and tax consequences, many of which are not immediately obvious.
Whether you are considering gifting a property to a child, transferring ownership to another family member, placing property into trust, or planning your estate for the future, our experienced Private Client team can provide tailored advice based on your circumstances.
We can help you understand the potential inheritance tax, capital gains tax, Stamp Duty and care fee implications so that you can make an informed decision.
To discuss your options or arrange an appointment with a member of our team, please contact Thornton Jones Solicitors today.
For advice or assistance in relation to gifting property please contact our team today on 01924 290 029 or via our online enquiry form.
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The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
Do I need to register my Trust with HMRC?
Most trusts in the UK must be registered with HMRC’s Trust Registration Service, but certain trusts are exempt, such as those imposed by a court or created through legislation. Trustees are legally responsible for ensuring registration where required. Failing to do so can lead to penalties, so it is important to confirm your obligations with a solicitor or a tax adviser.
In this article we focus on the registration of non-taxable Trusts, which is a Trust that has no UK tax liability. Here we set out some key information in respect of registering a non-taxable Trust with HMRC. Trusts can be a tricky concept and so it is always encouraged to seek professional advice in respect of whether a specific Trust needs to be registered or not.
What is a non-taxable trust?
A non-taxable trust is a trust that does not currently incur any UK tax liability, such as Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax or Stamp Duty Reserve Tax. Non-taxable trusts often arise where the trust holds assets that do not generate taxable income or gains, or where the trust qualifies for an exemption under tax law.
What types of non-taxable Trusts need to be registered with HMRC?
Prior to a change in September 2021, only taxable Trusts were subject to registration, however, following a change in the HMRC rules, there is now a requirement for most non-taxable express Trusts to be registered too. An express Trust is a type of Trust which is created deliberately by the Settlor (the person who created the Trust) and there will usually be a document, such as a Deed, which creates the Trust. Express Trusts can be made either during the lifetime of the Settlor or they can be created on their death if their Will creates a Trust.
What types of Trusts are exempt from registration?
There are, however, some exceptions to the types of non-taxable express Trusts that need to be registered. Schedule 3A of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 sets out specifically the types of Trust that are excluded from the registration requirements. It is important that you check to see whether the type of non-taxable Trust you are considering falls into any of the exclusions.
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How do I register a Trust as a trustee with HMRC?
Trusts need to be registered with HMRC using their online Trust Registration Service (TRS). The Trustees need to make an account to do this and then input and submit all of the information required. You should then be issued with a Unique Reference Number (URN) for the non-taxable Trust.
Once the Trust is set up on the TRS, the Trustees are then responsible for keeping the information on there up to date, as and when anything changes. It is important to remember that the responsibility to keep the TRS information up to date is an ongoing responsibility and should be done as part of the administration of the Trust.
Who is responsible for registering a Trust with HMRC?
In England and Wales, trustees are legally responsible for registering a trust with HMRC’s Trust Registration Service, unless the trust is exempt. They must register accurately and on time, and keep details updated to avoid penalties. As the rules can be complex, it’s important to seek expert legal advice to confirm whether registration is required and ensure full compliance.
Thornton Jones Solicitors advise that trustees should take these duties seriously to avoid costly penalties and protect beneficiaries’ interests. Early legal guidance can clarify obligations and help manage the registration process efficiently.
Contact our solicitors today for tailored advice on trust registration.
What is a Secret Trust?
Often thought to no longer be relevant in modern law, the archaic concept of secret trusts still exist in Wills today. This little known but fascinating topic does appear from time to time. The law concerning secret trusts is complex, but in the most simple terms, a secret trust is created when a person (known as a testator) makes a gift in a Will to one person but really intends that the person receiving that gift (the secret trustee) to hold that gift for another person instead (the beneficiary). A Blog by Liz Fyfe.
Does it matter when the non-taxable Trust was made?
- Non-taxable Trusts created on or before 06 October 2020 should have been registered on or before 01 September 2022.
- Non-taxable Trusts created after 06 October 2020 should be registered within 90 days of the Trust being created or it no longer being excluded under Schedule 3A mentioned above.
What happens if I do not register a Trust in time?
If a Trustee deliberately fails to register a Trust on time or fails to keep the Trust Registration Service information up to date, HMRC may impose a fixed penalty of up to £5,000. Before deciding to charge a penalty. HMRC will consider whether the failure was deliberate. As such, whether HMRC charge a penalty is considered on a case-by-case basis.
How can we help you register your trust with HMRC?
Thornton Jones can assist in dealing with the registration of Trusts on the Trust Registration Service on behalf of the Trustees. We are also able to provide Trustees with advice in respect of the ongoing administration of the Trust. If you do require any professional advice or assistance with all manner of Trust queries, then please do contact a member of the Team.
Registering a Trust with HMRC FAQs
A Trustee is a person who will manage the money or assets that have been appointed to another individual and will decide when and how the inheritance will be allocated to the beneficiary. The trustee must act in the best interests of the beneficiary or beneficiaries and follow the terms as they are laid out in the Will.
The settlor is the person who sets up the trust, who owns the trust and reserves the right to amend or revoke the trust. The settlor also specifies who will be the trustee, who should benefit from the trust assets, and under what circumstances.
An express trust, that is a trust that is intentionally made by the settlor, is any trust created deliberately by a settlor in express terms. The opposite of an express trust, in legal terms, is an implied trust, which is implied by the circumstances.
The settlor is the person who puts assets into a trust.
In England and Wales, most trusts must be registered with HM Revenue & Customs (HMRC) through the Trust Registration Service (TRS). As a trustee, you are legally responsible for ensuring the trust is registered if it meets the registration requirements. You will usually need to register a trust if it:
1. Is liable to pay UK tax, or
2. Is a UK express trust, or
3. Is a non-UK trust with certain UK connections (such as UK property ownership or income from the UK).
Steps to register a trust:
• Gather required information – This includes the trust’s name, date of creation, details of all trustees, settlors and beneficiaries, and any assets held by the trust.
• Create a Government Gateway account – You will need this to access the TRS online.
• Complete the TRS form – Provide all required details accurately.
• Submit the registration – Once complete, you will receive a unique reference number for the trust.
Deadlines vary depending on when the trust was created and whether it becomes liable for UK tax, so it is important to register promptly to avoid penalties.
If you are unsure whether your trust needs to be registered or you require assistance with the process, a solicitor experienced in trust law can provide tailored advice and manage the registration on your behalf.
How can we help you register your trust with HMRC?
Thornton Jones can assist in dealing with the registration of Trusts on the Trust Registration Service on behalf of the Trustees. We are also able to provide Trustees with advice in respect of the ongoing administration of the Trust. If you do require any professional advice or assistance with all manner of Trust queries, then please do contact a member of the Team.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
