Rebecca Carlyon notes the intricacies of beneficial interest relating to a foreign divorce
The Chancery Division was required to determine issues relating to the beneficial interest in a London property arising from divorce proceedings in Israel between Israeli nationals resident in Israel (Liora Shama, the wife (W), and Meir Shami, the husband (H)), and involving the husband’s brother (Eyal Shami (B)) (Shami v Shami and another [2012] Lexis Citation 16). In December 1989 H purchased the lease of a property in London for £110,000 in his sole name, with the aid of a mortgage with Halifax in the sum of £83,000. H and B stated that the remaining £27,000 plus legal costs were paid by B.
H accrued substantial debts, one to a London supplier and the other an overdraft with NatWest.
In June 1995 H issued proceedings for divorce in Israel in the rabbinical courts. The final decree was pronounced in 2003.
In August 1995 H executed a legal charge in B’s favour, which was registered, of the leasehold interest in the flat to secure £77,000 plus interest. This included the original £27,000
