Winners of Family Law Team of the Year – Chambers HNW Awards 2024
Divorces involving hedge fund professionals and financial services executives typically involve financial structures that require specialist understanding of performance fees, deferred compensation, bonus arrangements, and fund interests and how these assets are treated by the courts. At Payne Hicks Beach, we have direct experience advising in matters involving financial services professionals and understand complex remuneration structures. Our team has the knowledge to address these issues effectively, whether in negotiation or litigation.
We will always begin by considering with you how you envision your separation unfolding and by exploring the best means of achieving your objectives. We will guide and support you through the divorce process and the resolution of a financial separation, seeking the best possible outcome for your family. We are experts in all methods of non-court dispute resolution and will explore these with you. We estimate that over 90% of the cases that we are involved in are settled without the emotional distress and expense of going to court.
Unravelling a couple’s financial affairs on divorce or separation requires careful analysis and forensic skill. Often with an international dimension, our team are experienced in dealing with families with complex, multifaceted financial arrangements, frequently involving offshore corporate structures, trusts, entities and non-UK situs assets. Our team is ranked Band 1 by Chambers HNW and Top Tier by Legal 500.
Our Divorce Services
- FINANCIAL REMEDY & ASSET DIVISION
- HEDGE FUND & FINANCIAL SERVICES DIVORCE
- NON-COURT DISPUTE RESOLUTION
- INTERNATIONAL & CROSS-BORDER DIVORCE
We are proud to have represented clients in cases that have developed family law in key areas and have profoundly impacted the lives of our clients. Read more about our cases.
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Navigating changes to your family structure requires specialist expertise, strategic thinking and a genuine understanding of your situation. At Payne Hicks Beach, our experienced solicitors are dedicated to protecting your assets, your family and your privacy while ensuring a fair and favourable outcome in your hedge fund or financial services divorce.
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Why Choose Payne Hicks Beach?
With top ratings in Chambers UK, Chambers HNW and The Legal 500 UK guides, the department is recognised as frequently advising in some of the most high-value and high-profile matrimonial finance cases in the market, including cases involving financial services professionals, complex remuneration structures and international elements. We are trusted by entrepreneurs, business owners, professionals and families with significant assets across multiple jurisdictions.
In 2024, Payne Hicks Beach won Family Law Team of the Year at the Chambers HNW Awards. We are also recognised by E Private client (Tier 1), Doyle’s Guide (First Tier) and the Spear’s Family Lawyers Index.
Unravelling a couple’s financial affairs on divorce or separation requires careful analysis and forensic skill, and cases involving hedge funds demand this in particular depth. Compensation structures in the industry typically include discretionary annual bonuses, deferred cash or equity awards, performance fees, co-investment arrangements and interests in the fund management company. Each of these elements requires careful analysis: whether it constitutes a matrimonial asset (in whole or in part), when it vests, when it falls to be valued, and how it should be divided.
Particular complexity arises where awards are subject to clawback provisions, vesting conditions, or future performance hurdles. The court will consider whether a bonus has been earned during the marriage even if it has not yet been paid, and how to treat awards that remain contingent on future events. Our team has experience navigating these issues and working with the forensic accountants and remuneration experts required to understand and present them effectively.
High net worth family law cases often require input from other disciplines, including tax planning, wealth protection, business succession, reorganisation or creation of trust structures and property arrangements. As a multi-service firm, we offer comprehensive support across wealth, tax, business and private client matters, delivering a coordinated strategy.
When advising the spouse of a private equity partner on the division of carried interest and deferred compensation, our family team worked alongside our tax and corporate specialists to structure a settlement that minimised the tax exposure for both parties. This outcome would not have been possible without integrated advice.
We understand that privacy and discretion are of critical importance to our clients. As well as being seasoned litigators, we are also highly experienced in all aspects of non-court dispute resolution, including arbitration, mediation, and private hearings. The commercially sensitive nature of hedge fund and financial services arrangements makes confidential resolution particularly desirable. We are committed to ensuring your family’s privacy and reputation are protected throughout.
We represented a client whose divorce, had it been conducted through the courts, would have attracted significant public attention. By steering the matter through private arbitration, we secured a fair financial outcome while ensuring that the settlement terms and the parties’ identities remained entirely out of the public domain.
Many of the cases that we deal with involve business assets, complex structures, or international holdings. We regularly act in cases where one party alleges that the other has not been fully transparent with their disclosure and believes that there are unidentified assets. In such cases, we instruct expert forensic accountants to trace concealed assets and analyse financial transactions; business valuation experts to assess shareholdings, partnerships, and corporate interests; pension specialists; and international counsel to recover overseas assets and enforce orders globally.
In a recent matter, we worked with forensic accountants to investigate a series of pre-proceedings transactions through which one spouse had moved significant assets into offshore structures in anticipation of divorce. The investigation enabled us to recover the full value of those assets and obtain adverse cost orders against the non-disclosing party.
Increasingly, family law matters involve multiple jurisdictions, complex international assets and require input from lawyers in other jurisdictions. We have significant experience handling multi-jurisdictional matters and can recommend a network of international contacts to assist.
Case example: We advised a dual-national client whose spouse had commenced divorce proceedings in two jurisdictions at the same time. By successfully establishing that England and Wales were the appropriate forum, we secured a significantly more favourable outcome than would have been available under the alternative jurisdiction’s legal framework.
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Our Services
Performance Fees and Deferred Compensation
Performance fees and deferred compensation arrangements are often the most significant and complex assets in a hedge fund divorce. The court must determine whether a fee or award has been earned during the marriage, how and when it should be valued where it has not yet vested, and how to treat amounts subject to future performance conditions or clawback provisions. We advise on the full range of issues arising from performance-related compensation in the financial services sector.
Annual Bonuses and Unvested Awards
Discretionary annual bonuses and deferred equity awards are common in the hedge fund and financial services sector. The court will consider when a bonus was earned, when it vests, and whether unvested awards should be treated as matrimonial assets. We advise on how courts approach these issues and how to structure settlements that deal fairly with awards that have yet to pay out.
Financial Disclosure
Having identified and valued the financial resources, often in the context of a quasi-collaborative process, our aim is to keep clients away from the under-resourced, protracted and potentially public court process and to explore avenues for resolution. In financial services cases, the disclosure exercise may require compensation agreements, fund documentation, deferred award schedules, and co-investment records. Where one party is not forthcoming, we can make applications to the court for specific disclosure orders.
Non-court Dispute Resolution
The commercially sensitive nature of hedge fund and financial services divorces makes non-court resolution particularly valuable. We are experienced in private arbitration, private Financial Dispute Resolution appointments (engaging a senior barrister or retired High Court Judge as a private tribunal), mediation, and inter-solicitor negotiation. The vast majority of cases are capable of resolution without recourse to the courts.
Credentials & Accreditations
- Chambers HNW 2025: Band 1, Leading Firm for Family Law
- Chambers UK 2026: Band 1, Leading Firm for Family Law
- Legal 500 UK 2025 & 2026: Top Tier, Leading Firm, Family Law
- ePrivateclient 2025: Tier 1 Ranking, Top Family Law Firms
- Doyle’s Guide 2025: First Tier, Leading Family & Divorce Law (London)
- Spear’s Family Lawyers Index 2025: Featured for top family lawyers
- Chambers HNW Awards 2024: Winner, Family Law Team of the Year
Meet the Team
Our divorce team is led by some of the most experienced and recognised family lawyers in England and Wales. Each brings specialist expertise across different aspects of divorce law.
Baroness Shackleton of Belgravia LVO
Partner
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Nick Manners
Partner
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Ben Parry-Smith
Partner
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Victoria Hingston
Partner
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Simon Beccle
Partner
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Matthew Booth
Partner
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Harriet Errington
Partner
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Charlotte Skea-Strachan
Legal Director
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Katie Parkes
Legal Director
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Frequently Asked Questions
The treatment of a bonus or performance fee in divorce depends on when it was earned and when it was paid. Bonuses earned during the marriage are generally treated as a matrimonial asset even if they have not yet been paid. Where a bonus has been declared but not yet received, it will typically be included in the financial disclosure and form part of the matrimonial pot. Discretionary bonuses not yet determined present more complexity: the court will consider the likelihood of payment and approximate value, based on prior years and the financial performance of the fund.
Deferred compensation awards are common in the hedge fund and financial services sector. Whether a deferred award is treated as a matrimonial asset depends on when the entitlement to it arose. Awards earned during the marriage are generally treated as matrimonial property, even if they vest after separation. The court has a range of tools available, including ordering that a share of each award is transferred to the other spouse as and when it vests, or taking deferred awards into account when structuring the overall division of assets.
Yes. Where deferred awards or performance fees are subject to clawback provisions, this is a relevant factor in determining their true value. The court will consider the likelihood and extent of any clawback when deciding how much weight to place on a contingent award. In some cases, it may be appropriate to structure a settlement that shares any clawback risk proportionately, rather than treating an award at its nominal face value.
Fund interests and co-investment arrangements are treated as assets for the purposes of financial remedy proceedings. Valuing them can be challenging where the investments are illiquid, subject to lock-up periods, or dependent on future performance. We work with forensic accountants and valuation experts experienced in fund structures to provide the court with reliable evidence on value, and to advise on how settlements can be structured to reflect the illiquid nature of these interests.
Failure to disclose assets is a serious breach of the duty to give full and frank financial disclosure. We can engage inquiry agents to identify concealed wealth, work alongside forensic accountants to uncover hidden assets, invite the court to draw adverse inferences against a non-disclosing party, pursue contempt proceedings, and obtain worldwide freezing orders to prevent further dissipation.
If there are business interests that need to be valued, we will instruct a suitably qualified expert to provide an opinion on value. This is typically done pursuant to a court order on the basis that the expert will act as a Single Joint Expert, producing a report to the court rather than acting as an expert for either party.
Trusts can present significant complexity in financial remedy proceedings. Courts take a pragmatic approach, looking beyond the legal structure to assess whether a party has genuine control over trust assets, whether substantial distributions are received, and whether the trust is a genuine arrangement or one designed to put assets beyond reach. Our family lawyers work alongside our private client and trust specialists to provide fully coordinated advice in these cases.
For high-profile clients and those prioritising discretion, we are able to utilise the court’s lock and key procedure in appropriate circumstances to ensure that divorce proceedings are kept private. In respect of financial negotiations, we can facilitate private arbitration, mediation and collaborative law, all of which offer a considerably higher degree of privacy than court proceedings. We can work with our colleagues in our Dispute Resolution team who are experts in reputation and media management, confidentiality proceedings and privacy protection strategies.
Insights
Can Postnuptial Agreements Simplify Separation Decisions?
Should I have a petnuptial agreement?
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If you are involved in a hedge fund or financial services divorce, or need advice on the division of performance fees, deferred compensation, or complex financial assets, our team is here to help. We are happy to discuss your circumstances, explain your options, and set out a clear path forward.