Wife Awarded £15m After Sham Trust Exposed

Melissa Arnold

Wife wins £15m in lump sums after ex’s ‘sham’ trust failed

The divorce team at Osbornes Law represent UK and international clients in high value financial proceedings.

‘Power tends to corrupt…’ goes the well-known saying – the truth of which is often demonstrated in high value financial proceedings. Where one party possesses significant wealth and power, the other party may find themselves financially and emotionally vulnerable.

In a recent case, the husband did his utmost to dishonestly hide his wealth in order to minimise the wife’s financial award. The decision serves as a warning to all parties to be open and honest from the outset; and provides reassurance to clients who are in a weaker position than their spouse.

What’s the background?

In Michael v Michael (No 3) [2025] EWFC 245, Stalo and Mario Michael were married for 22 years before Stalo petitioned for divorce in 2022. Both have Greek Cypriot heritage but have lived in England for most of, if not all, their lives. They have two children (now adults).

Financial proceedings began in June 2022. Mario was a wealthy property investor and developer and had built up the family’s substantial wealth. However, His Honour Judge Hess said this came with “several darker sides”. Mario was, for instance, “a dominating and menacing presence” and likes people to know he’s in charge; “that doing what he says will generate a reward and crossing him will generate a punitive reaction”.

In earlier proceedings, the judge found that Stalo was straightforward and honest in court. But Mario was a “fundamentally dishonest man, quite prepared to be wholly and deliberately dishonest when it suits him” – forging documents, and/or forging signatures on documents.

In 2024, the judge refused Mario’s application under s37 Matrimonial Causes Act 1973 to set aside a share transfer by Stalo to her brother-in-law which may have increased her wealth by about £1m. The transfer had been made in good faith and for valuable consideration.

He also rejected Mario’s claim that assets worth around £38m were held on trust for the benefit of others, and not himself or Stalo. If Mario had succeeded on this point, the majority of the assets would have been out of Stalo’s reach. However, the judge concluded it was a sham trust; the trust document was a “cover story”. Mario was the true beneficial owner of the assets throughout but had attempted to hide them.

Financial award

Summing up Mario’s attitude and conduct, the judge said that from the time Stalo told Mario she was divorcing him, Mario had done everything in his power to ensure she would not receive her fair share.

At the final hearing in May 2025, Mario was ordered to pay a series of three lump sums to Stalo totalling £15m (starting with £4m by 1 September 2025); and spousal maintenance until the second payment had been made. Further provisions in the order concerned the sale of the family home and the potential tax liability arising out of the sham trust.

Mario was also ordered to pay 85% of Stalo’s legal costs that had accrued up to the August 2024 hearing.

Non-compliance

It’s notable that in an earlier judgment, the court appointed receivers to ensure Mario’s compliance with orders in respect of payments to Stalo. A rare but necessary move by the judge, who said it was “entirely the responsibility of the husband’s attitude to this case and his refusal to make any steps to comply with my orders”.

How we can help

At Osbornes Law, we specialise in complex, high-value divorce cases where transparency and strategic expertise are essential. Whether you’re concerned about hidden assets, unfair treatment, or simply want to understand your rights, our award-winning family law team is here to help.

Contact us today for clear and strong legal representation. Contact us by:

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