Winners of Family Law Team of the Year – Chambers HNW Awards 2024
Within financial remedy proceedings, private equity partnerships can create some of the most complex financial structures that may be encountered. Valuing and understanding illiquid assets such as carried interest, co-investment arrangements, management equity and fund interests and understanding the relevant vesting schedules will require the involvement of specialist forensic accountants alongside a knowledgeable legal team. At Payne Hicks Beach, we have substantial experience advising in financial remedy proceedings where private equity is a factor, and our team has the knowledge to address these issues effectively.
Our starting point will always be to consider with you how you envision your separation unfolding and we will explore with you the best means of achieving your objectives. We will advise and support you through the divorce and financial remedy journey, seeking to find the most appropriate process for your family. We are well versed in all methods of non-court dispute resolution and will explore these with you. We estimate that over 90% of cases that we are involved with are settled without the emotional distress and expense of going to court.
Disentangling a couple’s financial affairs on divorce or separation requires careful analysis and forensic skill. Frequently our cases have an international dimension, and our team are highly experienced in dealing with families with multifaceted, complex financial arrangements, often 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
- PRIVATE EQUITY & CARRIED INTEREST
- 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 whilst finding a bespoke solution that takes into account private equity assets.
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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 private equity interests, complex business assets 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 ePrivateclient (Tier 1), Doyle’s Guide (First Tier) and the Spear’s Family Lawyers Index.
Disentangling a couple’s financial affairs on divorce or separation requires careful analysis and forensic skill, and cases with a private equity element demand this in particular depth. Carried interest is typically structured as a right to a share of fund profits, often subject to vesting schedules, hurdle rates, clawback provisions, and performance conditions that mean its value at any given point is contingent and illiquid. The court must determine whether carried interest constitutes a matrimonial asset, when it falls to be valued, and how it should be divided.
We advise on how courts approach unvested and vested carry, how to instruct the right forensic accountants to value fund interests, and how to structure settlements that reflect the illiquid and contingent nature of private equity wealth. Where a matter requires input from our tax or corporate colleagues, we are able to deliver that advice in a coordinated way. We have excellent working relationships with a number of experienced forensic accountants who are able to assist us with detailed analysis and understanding of the assets under scrutiny.
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 law firm, we offer comprehensive support across wealth, tax, business and private client matters, enabling us to deliver a coordinated strategy.
Case example: 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. We are experienced litigators but we are also well versed in all aspects of non-court dispute resolution, including arbitration, mediation, and private hearings. We are committed to ensuring your family’s privacy and reputation are protected throughout the process.
Case example: We acted for a client whose divorce, had it proceeded through the courts, would have attracted substantial media attention given the public nature of their business interests. By resolving the matter through private arbitration, we achieved a fair financial outcome while keeping the settlement terms and the client’s identity entirely confidential and avoiding unwanted media exposure.
A significant number of the cases that we handle involve business assets, complex structures, or international holdings. We frequently 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 are able to 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.
Case example: In one matter, we instructed forensic accountants to analyse a series of transactions through which one spouse had transferred significant assets into offshore structures in the period immediately preceding divorce proceedings. The forensic analysis enabled us to recover the full value of the concealed assets and secure 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 client with dual nationality whose spouse had initiated divorce proceedings in two jurisdictions simultaneously. By successfully arguing that England and Wales was the appropriate forum, we secured a substantially more favourable outcome than would have been available under the alternative jurisdiction’s legal framework.
Client Testimonials
Our Services
Carried Interest and Vesting
The treatment of carried interest on divorce depends on a number of factors, including the extent to which the carried interest has been earned before or during the marriage, whether the carried interest has vested, its current and likely future value, and the extent to which it reflects the husband or wife’s post-separation endeavours. Courts consider what proportion of carried interest was earned during the marriage and may limit the non-earning spouse’s entitlement to reflect the stage of the fund at the point of separation. We are equipped to advise on how the courts are likely to approach these issues and formulate a bespoke solution to take these assets into account.
Fund Interests and Co-Investments
Where a party holds a stake in a private equity fund, a portfolio company, or a co-investment arrangement, establishing a reliable value requires specialist expertise. We work with forensic accountants and business valuers experienced in GP and LP interests, management equity plans and fund-level structures, and we ensure that the valuation evidence presented to the court reflects the realities of how private equity wealth actually works in practice.
Financial Disclosure
Having identified and valued the financial resources, often in the context of a collaborative process, our aim is to assist our clients to reach a resolution via non-court dispute resolution, including mediation and arbitration. In private equity cases, the disclosure exercise may require the productions of extensive material including fund statements, limited partnership agreements, carried interest waterfall calculations, and management fee records. If one party is reluctant to provide the necessary information to enable forensic accountants to carry out the valuation exercise, we are able to make applications to the court seeking specific disclosure.
Non-Court Dispute Resolution
The commercially sensitive nature of private equity arrangements makes non-court dispute resolution particularly valuable. We are highly experienced in arbitration, private Financial Dispute Resolution appointments (engaging a senior barrister or retired High Court Judge as a private tribunal), mediation, and inter-solicitor negotiations. In our experience, 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
Carried interest is a right to a share of a private equity fund’s profits, typically received by fund managers and partners as performance-related compensation. In financial remedy proceedings, the court must determine whether carried interest constitutes a matrimonial asset, how it should be valued, and how it should be divided. Courts consider the stage of the fund lifecycle at the point of separation and the extent to which future carry depends on post-separation endeavours by the party who holds it. The non-earning spouse’s entitlement may be limited to reflect these factors.
Valuing unvested carried interest is inherently complex because its ultimate value depends on future fund performance, exit timings, hurdle rates, and clawback provisions. An expert is likely to be appointed, typically on the basis that they are jointly instructed by the parties, to advise the court on valuation. These experts may apply discounts to a current estimated value to reflect contingency and illiquidity, or by deferring distribution of the asset until the carried interest crystallises and dividing the proceeds at that point. We have excellent contacts with a wide range of experts with the ability to advise in this field.
Whether a fund interest is treated as a matrimonial asset depends on when it was acquired and how it has been treated during the marriage. Interests acquired before the marriage, or which can be properly characterised as non-matrimonial in origin, may be treated differently. However, the court has wide discretion and, where the needs of the parties require it, may invade non-matrimonial assets. In the case of Standish v Standish [2025] the court made clear that non-matrimonial property should be excluded from the sharing exercise (save to meet needs) unless the assets have been treated as joint property during the marriage. Early specialist advice is essential.
Both parties are required to provide full and frank financial disclosure in all cases. In private equity cases, this may require production of fund statements, limited partnership agreements, carried interest schedules, co-investment documentation, and records of management fees. In the first instance this will be done by completing a Form E. Where there are complex private equity interests, further disclosure is likely to be required to enable an expert to fully understand the position. If one party is reticent to produce the necessary information it may be necessary to apply to the court for specific disclosure orders. Incomplete or misleading disclosure may result in adverse inferences being drawn, costs orders being made, or an order being set aside.
Non-disclosure of assets is a serious breach of the duty to provide full and frank financial disclosure. We can instruct inquiry agents to conduct searches for concealed wealth, work with forensic accountants to uncover hidden assets, seek adverse inferences from the court against the non-disclosing party (for example where their disclosed assets and income do not align with their lifestyle), pursue contempt proceedings for breach of court orders and, in certain circumstances, obtain worldwide freezing orders to secure assets at risk of dissipation.
Insights
Can Postnuptial Agreements Simplify Separation Decisions?
Should I have a petnuptial agreement?
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If you are involved in a private equity divorce or need advice on the division of carried interest, fund interests 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.