A detailed analysis of BM v MB v GM v X (2025) EWFC 129 a key Financial Remedies case dealing with asset transfers, identification of marital property and avoidance of disposition orders

Here is a detailed analysis of BM v MB v GM v X (2025) EWFC 129, a key Financial Remedies case dealing with asset transfers, identification of marital property and avoidance of disposition orders.
Facts & Procedure
- The case involved a long marriage, with significant wealth: a family business (valued at approx. £20.26 m) and substantial landholdings adjacent to the family home.
- The husband (H) had transferred approximately 25% of his shareholding in the family company into a trust (for the children) and had also transferred two (or three) parcels of land to an LLP or similar vehicle.
- The wife (W) applied under s 37 of the Matrimonial Causes Act 1973 to set aside the transfers, arguing they were made to defeat her financial claims.
- The court had to determine: (a) whether the transfers should be set aside, (b) the valuation and classification of assets (marital vs non-marital), and (c) the appropriate remedy (lump sum, pension share etc).
- The hearing ran for a substantive period with expert valuations of the business, land and trust interests.
Key Legal Issues
Avoidance of Disposition (s 37 MCA 1973)
- The statutory test: whether the disposition(s) had the effect of defeating or reducing the party’s claim, whether they were made with that intent, and whether the court should exercise its discretion to set them aside.
- Whether the transfers to the trust/LLP were part of estate planning/tax planning or were deliberately structured to frustrate the wife’s claim.
- How to treat third-party arrangements (trust, LLP) where husband retains beneficial control.
Identification and Valuation of Marital Assets
- What counts as martial/acquired assets: the business, uplift, land, trust interests.
- Apportioning between marital and non-marital: e.g., inherited or pre-marital shares vs marital growth.
- Use of appropriate valuation methods: whether discounts for minorities, illiquidity, or long-term ownership apply.
- The role of the sharing principle under s 25(2)(a) MCA 1973 and how the court should exercise discretion once the asset base is identified.
Remedy and Exercise of Discretion
- Once assets are identified, how the court determines lump sum, pension sharing, pension offset, capitalisation of maintenance, etc.
- Costs consequences: conduct of parties, negotiation behaviour, use of expert evidence.
Judgment & Reasoning
- The court set aside the impugned transfers of shares and land under s 37 because it found: the effect of the transfers was to reduce the wife’s claim; the transfers were made with the requisite intention to defeat the claim; and discretion should be exercised to set them aside.
- On valuation: The court rejected significant discounts (for minority holdings, illiquidity) because the evidence did not support them, noting the business could only realistically be sold by the shareholders together.
- On the identification of marital assets: The court applied an “intuitive approach” (per Robertson v Robertson (2016) EWCA Civ 1866) rather than a strict formulaic percentage deduction, due to lack of historical accounting evidence.
- On matrimonialisation: The court emphasised that inherited shares might be ring-fenced, but uplift attributable to marital endeavour is shared. The court did not require a separate enquiry into special contributions unless specifically raised.
- On remedy: The husband was ordered to pay a lump sum of approximately £5.37 million to the wife, the wife to transfer her shareholding back, the husband to discharge the wife's director loan account, and a pension share of 16% awarded.
- On costs: The wife was sanctioned in costs for failure to negotiate openly, despite the husband’s asset transfer misconduct. The husband paid the costs of the s37 application.
Significance & Practical Take-aways
- This judgment is a strong anti-avoidance message: transfers made near (or during) proceedings, to family trusts/LLPs, with effect of defeating claims, will be set aside.
- It demonstrates that beneficial ownership and substance matter more than form (trust/LLP structures will not immunise assets from sharing).
- Valuation: It reinforces that courts will not automatically apply discounts without evidence, especially where the assets are held by a controlling interest.
- The use of the intuitive apportionment approach under Robertson is reaffirmed — useful where historical breakdown data is missing.
- On matrimonialisation: Even inherited assets if significantly enhanced during marriage may attract sharing.
- On costs and conduct: Both parties’ conduct matters. Failure to negotiate reasonably can lead to cost sanctions even if one party engaged in asset diversion.
- Practical advice: Early forensic asset tracing, consideration of s 37 risk in financial remedy cases, and early estimation of the asset base are crucial.
Limitations / Considerations
- Fact-sensitive outcome: The extent of the transfers, business valuation scale, and evidence of intention make this case specific. Other cases with less stark features may lead to different outcomes.
- Not a binding precedent at appellate level — Recorder’s decision under Financial Remedies Court, albeit persuasive.
- The intuitive apportionment, while practical, leaves some uncertainty for parties who prefer formulaic clarity.
Complexity and cost: Such high-value cases demand expensive expert evidence and lengthy hearings. The conduct of both sides and negotiation early may be determinative.
If you are looking for a divorce lawyer for matrimonial finance, please contact Stephanie Heijdra via sheijdra@winvolvedlegal.co.uk.
For Family law advice and family court representation contact Stephanie Heijdra direct access family barrister via sheijdra@winvolvedlegal.co.uk or 02071014682








