Divorce husbands’ wealth can stay a secret in landmark ruling

The decision in the Court of Appeal removes protection given to thousands of divorcing couples and has major implications for people fighting over hidden wealth and documents.

Until today a husband or wife who came across information revealing hidden wealth could copy it and put it before the courts. But the Court of Appeal reversed that principle in a case involving Vivian Imerman, 53, who made millions from selling the Del Monte fruit company.

He won an appeal against property tycoons Robert and Vincent Tchenguiz, who took thousands of documents about his wealth to help their sister Lisa — Mr Imerman's wife. Lawyers described the judgment as "ground-breaking".

The couple, who are in the midst of a divorce, signed a pre-nuptial agreement after their 2001 marriage. She filed for divorce in 2008.

A bitter battle broke out over her demand for £100 million of his fortune because since the pre-nup deal he had made a fortune from selling the spirits company Whyte & Mackay. The two brothers obtained thousands of documents about his wealth from a computer at Mayfair offices Robert Tchenguiz had invited Mr Imerman to share.

They attempted to use information about his multi-million-pound estate at her divorce hearing. Robert Tchenguiz said he was concerned to protect his sister's interests and feared that Mr Imerman would try to hide his assets from her.

In July last year a High Court judge ordered the material to be returned and not disclosed to anyone else.

Today that order was confirmed by the Master of the Rolls Lord Neuberger, sitting with Lord Justices Moses and Munby.

They decided that the "Hildebrand rules" — a long-standing acceptance that divorcing couples can secretly obtain and use otherwise private documents in family court proceedings — have "no legal basis". They stated: "Nothing in the so-called Hildebrand rules can be relied upon in justification or provide a defence to conduct which would otherwise be criminal or actionable." Legal experts say today's ruling will lead to a sharp rise in new court action in divorces where husbands or wives suspect each other of concealing assets.

Mr Imerman's solicitor Frances Hughes said he was delighted "to have succeeded in a long battle for the return of his confidential and privileged documents."

Lisa Tchenguiz said the judges had given her husband every incentive to lie and hide his wealth. The "ace from a sleeve" which wives have been able to play in producing documents to prove the lies has now been ruled inadmissible, she said.

Her solicitor Diana Parker said: "Lisa Tchenguiz is prohibited from saying what her husband claims he is worth, compared with what is in the public domain as to the wealth he created during their marriage.

"But she is not gagged from saying that she finds the Court of Appeal decision a cheats' charter."

Vivian Imerman said: "I was determined that my private papers could not be stolen and the perpetrators get away with it without any retribution."

The ruling could have a significant impact on the long-running battle between businessman Scott Young and his estranged wife Michelle.