Britain’s “longest-running” divorce battle is finally over after a High Court judge awarded an ex-wife £6.6 million from her former husband’s concealed fortune, bringing an end to a dispute spanning more than two decades.
Varsha Gohil, 61, first petitioned for divorce from solicitor Bhadresh Gohil in May 2002, citing adultery and unreasonable behaviour. At the time, she accepted a financial settlement of £270,000 and the family Peugeot, despite suspecting her husband had not disclosed the full extent of his wealth.
Hidden Wealth
More than 23 years later, and following a series of complex legal proceedings, Mrs Gohil has been awarded £6.6 million from assets linked to a £28 million fortune, much of which had been hidden through complex corporate structures across multiple jurisdictions.
In 2007, she had begun gathering evidence that her former husband had been dishonest during the financial disclosure process, an effort that gained traction following his conviction in 2011 for fraud, money laundering and related offences, in which millions of pounds were allegedly laundered via his firm’s client account.
The case reached a critical moment in 2015, when the Supreme Court confirmed that financial settlements can be reopened where they were based on fraudulent or incomplete disclosure.
The Judgement reinforced the importance of full and frank disclosure when determining if a financial settlement is fair. If one party has been dishonest, the Court has the power to revisit the previous settlement made, considering the disclosure that was not given honestly previously.
Who Owns the Money?
Despite the Supreme Court ruling, litigation continued. The central issue became whether the £28 million fortune belonged to Mr Gohil, and whether it should be treated as matrimonial property.
Mr Gohil argued the assets were not his and therefore fell outside the matrimonial pot, meaning his former wife would have no claim.
The Crown Prosecution Service argued that the entire sum was criminal and the proceeds of crime and should remain subject exclusively to criminal confiscation proceedings.
The High Court, Mr Justice Williams, ultimately rejected both positions in part, finding that some assets were legitimately acquired during the marriage, while also the Prosecutors had failed to prove that the entire fortune derived from criminal activity.
The judge determined that a proportion of the businesses and assets had been legitimately acquired during the marriage and therefore constituted matrimonial property. Mrs Gohil was therefore awarded £6.6 million.
Why This Case Matters
This case is now widely regarded as a landmark decision as it highlights that there is no “safe” settlement if it was built on dishonesty.
Courts have increasingly robust powers to revisit settlements and penalise non-disclosure, including setting aside orders and drawing adverse inferences against the party who has been dishonest. This is an important reminder for anyone in divorce proceedings that both parties have a legal duty to provide a complete and accurate picture of their finances. This includes:
- Property and land
- Savings, investments and pensions
- Business interests
- Income, bonuses and debts
Without this transparency, neither party (nor the court) can reach a fair outcome.
Trying to conceal wealth, whether deliberately or by “forgetting” to disclose something, can have serious consequences, including:
- Settlements can be overturned, even years later
- Courts may assume hidden assets exist and award more generously to the other party
- Legal costs can increase significantly
- In extreme cases, there may be criminal consequences
For anyone going through a divorce, the key message is to be transparent from the outset, get early legal advice and raise concerns early if you suspect non-disclosure.
For more information, please contact...
Olivia Fisher
Trainee Solicitor
Olivia Fisher is a Trainee Solicitor at Swinburne Maddison with a split role between Contentious Probate and Family Law ahead of qualification in July…