Smoke and mirrors: shams and illusory trusts in divorce proceedings
7th July 2025
3PB Property, Chancery and Matrimonial Finances barrister Rachel Bale (pictured here) writes for the Financial Remedies Journal an article about ‘shams’ or ‘illusory’ trusts and the challenges they cause in divorce proceedings for family and chancery lawyers alike.
Rachel provides guidance on the legal principles to follow to identify shams and illusory trusts and considers the steps to follow to navigate through the difficulties they create, including:
- Back to basics: key players in a trust
- The difference between a ‘sham’ and an ‘illusory trust’
- Who bears the burden of establishing such a document/trust and to what standard?
- What evidentiary steps ought to be taken to establish the existence of such a trust?
- What are the consequences of identifying such a trust?
- Potential applications under MCA 1973, s 37 and IA 1986, s 423
- Practical guidance for practitioners
Rachel Bale was called to the Bar in 2019. A fierce and trusted family barrister and trusts expert, she often appears in cases well beyond her year of call. As a Trusts specialist she represents intervenors and third parties in complex disputes involving proprietary rights and interests, sham and illusory trusts as well as other Chancery matters. She is the co-founder the Her Bar support network. For more information or to instruct Rachel, contact her clerk Patrick Robson on [email protected].
Related News
-
Last week judgment was handed down in the landmark case of Redcar Cleveland v MA Albon and Anor. The case saw 3PB's family barrister and silk June Venters KC's client, a vulnerable mother in public law children proceedings, succeed against the notorious, unregulated sperm donor Robert Albon, better known by his pseudonym "Joe Donor". Albon, an American national, claims to have fathered over 180 children worldwide through his unregulated sperm donation activities — often carried...
Continue reading -
The Court of Appeal handed down judgment last week granting an appeal against a decision of HHJ Wicks. Paul Froud (pictured here), led by Darren Howe KC from 1 Crown Office Row, were instructed on behalf of the Child, acting through her Children’s Guardian. Neither Paul nor Darren appeared at the Final Hearing and were instructed by Mr. James Walthall of Jackson West Solicitors. The Court of Appeal upheld the appeal brought by the Local...
Continue reading -
3PB Barristers (3 Paper Buildings) are delighted to announce that three of our senior clerking team - Rob Leonard, Ian Charlton and David Fielder - will take on enhanced roles as Chambers Directors. James Thornton is also promoted and becomes our Chief Operating Officer (COO) with overall responsibility for procurement, HR, IT, facilities and finance. Warmest congratulations to all four of them (pictured here, clockwise from top left). Commenting on the announcement, 3PB's CEO Simon...
Continue reading -
3PB officially launched its NCDR (Non Court Dispute Resolution) services for family law on Wednesday afternoon (18 June) at 58 Victoria Embankment in London in front of more than 130 family law solicitors. The large national chambers - with 90 family law barristers - covers the full range of NCDR services including mediation, early neutral evaluation, private FDR hearings and arbitration. The three-hour briefing was billed as "Arbitration in Action" and gave practical tips on...
Continue reading
