Gold holds a special and unique importance in many Asian cultures, carrying deep personal and cultural meaning. However, when marriages break down and divorce proceedings begin, gold is viewed as an asset subject to division rather than a purely personal or sentimental item. For this reason, gold can become a complicated aspect in resolving financial matters on divorce, which many family lawyers will encounter.

The importance of gold in South Asian culture

In South Asian culture, gold symbolises security, status and heritage. It has long been customary to gift gold on auspicious occasions, particularly at weddings, and to pass it down through generations as inheritance.

During wedding ceremonies, gold is often exchanged between the families. For example, in South Asian culture, the bride is usually gifted gold from her in-laws and her own family in the form of jewellery sets, earrings, bangles and necklaces. These are also often family heirlooms and can therefore hold great sentimental value.

Beyond its cultural and sentimental importance though, gold can also hold considerable monetary value. It is widely regarded as a form of portable wealth and financial security. Historically, gold served as an economic safeguard for women during times of hardship, which is why there has been a strong cultural expectation to provide the bride with gold. In modern contexts, this practice is often understood more broadly as a means of ensuring financial stability for both partners in a marriage.

Gold also functions as a powerful symbol of family honour, social standing and generosity. The quantity and quality of gold is a physical demonstration of a family’s wealth and their commitment to cultural traditions. Consequently, disputes which arise over gold in the context of divorce can be highly emotional, as they are often perceived not merely as financial disagreements, but as matters involving respect, fairness, and the preservation of family dignity.

The treatment of gold on divorce and issues that can arise

When a couple separates, they will often decide to apply for a divorce and reach a financial settlement. This involves determining how the assets of the marriage are to be divided between the parties.

The Courts in England and Wales determine financial matters based on established legal principle, rather than the customs of any culture. The starting point is that all assets owned by either spouse, whether held jointly or in one person’s sole name, may be considered part of the matrimonial “pot” available for division. The courts in England and Wales are guided by section 25 of the Matrimonial Causes Act 1973, which requires the court to focus on achieving fairness and meeting the parties’ needs, rather than applying strict rules of legal ownership alone.

Ownership disputes, practical challenges and the judicial approach

A prevalent issue in many cases is the ownership of gold on divorce, particularly where gold was gifted at the time of marriage by family. When divorce proceedings are commenced, the families of the divorcing couple may expect the gold they gifted to be returned to them – particularly where the gold was a family heirloom.. However, there is no automatic expectation that the gold will be returned, as gifts are usually deemed by the Court to be the property of the recipient. Gifted gold will therefore become part of the matrimonial pot.

If the parties reach an agreement as to how the gold should be divided on divorce, this can be incorporated into the financial order drawn up between the parties, recording the terms of their overall agreement. However, where a dispute arises regarding ownership, the Court may be asked to step in to determine who the gold belongs to.  The Court will examine evidence of who purchased the gold and the intention behind the gift. Intention will be an issue for the court to consider on evidence. The burden will fall on the party claiming the gold, and they will be required to provide evidence such as receipts, records, photographs and witness evidence to support their case.

Disputes involving the ownership of gold can present a number of practical challenges. One of the most common difficulties is the lack of documentary evidence. For instance, where gold has been gifted as a family heirloom, it can be particularly challenging to establish both ownership and value, as such items are often passed on informally without receipts or written records. In addition, gold’s inherently portable nature makes it susceptible to concealment. A party may, for example, transfer it to a relative or remove it from the jurisdiction, and subsequently assert that they no longer have it in their possession, thus making it difficult to identify and value. This often happens when a spouse tries to minimise financial claims. It is important to recognise, however, that the courts are critical of anyone who attempts to hide assets and takes a robust approach to non-disclosure. Where there is evidence of non-disclosure or concealment, the court is entitled to draw adverse inferences, which may ultimately prejudice the position of the party failing to provide full and frank financial disclosure.

When a Court is faced with determining a dispute involving gold, it will usually draw a distinction between personal gifts and more substantial ones. Items that are clearly intended as personal gifts, particularly those of modest value, are often retained by the recipient. However, high-value items, such as gold jewellery given during a wedding or throughout the marriage, may be treated differently. Due to their significant financial worth, such gold may be regarded as a financial resource and may therefore be divided in order to meet the needs of the parties. As such, a typical result might involve the wife retaining her gold wedding jewellery, which is of modest value. When the gold is valuable, it may be considered alongside other matrimonial assets, rather than in isolation, and offset against other assets, so rather than dividing the gold, the Court allows one party to retain it while adjusting the distribution of the other assets, in favour of the other party, to ensure overall fairness. For example, if one spouse keeps the valuable gold jewellery, the other spouse may receive a larger share of other assets, such as savings, property, or investments, to balance the overall division.

Practical guidance for family lawyers

For family lawyers, careful handling of such matters is essential, as disputes surrounding gold can become very emotionally charged due to the cultural importance of gold. Solicitors handling such cases should ensure to do the following:

• Early identification and evidence gathering

When solicitors are instructed, they should ask their clients about the existence of any gold and identify this at an early stage. It is important to obtain detailed descriptions and schedules of gold, along with estimated values, from the client. As part of early identification, solicitors should ask their clients to provide photographs, such as wedding albums, as well as receipts, valuation reports, and witness statements where necessary, in case this needs to be presented to the other party, or the Court.

• Careful review of Form E financial disclosure

Solicitors must take care when reviewing Form E financial disclosure of the other party, particularly in circumstances where the clients confirms that the parties own gold. It is not uncommon for gold to be omitted from the Form E, or undervalued, and so it is important to subsequently raise questions to ascertain the existence or true value of any gold, as it can amount to a valuable asset.

• Valuation

Solicitors should also be prepared to advise their client to instruct an independent expert to value the gold. This is particularly important where the gold is anticipated to be highly valuable. Up-to-date valuations will be required to provide an accurate picture of the parties’ assets.

• Cultural awareness

Solicitors should be aware of the cultural importance of gold and approach such matters sensitively. It is important to establish the context, and the client’s views on the gold and ascertain their objectives. Given its cultural importance, it is essential for solicitors to manage their client’s expectations from the outset and explain in a clear and understandable way how the Court is likely to treat such assets.

• Strategic negotiation

Family lawyers should adopt a pragmatic and measured approach to negotiation, giving careful consideration to the use of offsetting where appropriate. In situations where the gold is of relatively modest financial value, it is essential for solicitors to advise clients on the issue of proportionality. In particular, clients should be made aware that the legal costs incurred in disputing such items can often outweigh the value of the gold itself, making it more sensible to pursue a practical and cost-effective resolution. This can be a tricky issue, because clients will often want to fight for the gold, because of its sentimental value and out of principle. However, it is important to keep an eye to legal costs and conduct a cost-benefit analysis.

Conclusion

For practitioners, successfully navigating these cases requires not only a clear understanding of the legal framework, but also cultural awareness, careful evidence gathering, and a pragmatic approach to negotiation. By balancing these factors, solicitors can help clients achieve fair and workable resolutions, even in the most emotionally charged circumstances.

How We Can Help

At Irwin Mitchell, we understand how deeply personal and sensitive these situations are. While grandparents don’t have automatic rights, the legal system offers important tools to help you maintain your bond with your grandchildren.

Our experienced Family Law team regularly advises clients in complex family matters, including those involving cultural and religious considerations. We’re here to guide you through every step of the process, whether through informal negotiation, mediation, or court proceedings, with a focus on achieving the best outcome for the children involved.

If you’re concerned about losing contact with your grandchildren, we encourage you to seek professional advice early. With the right support, it’s possible to preserve these important relationships and move forwards with confidence.

Written by Priya Luharia

Priya is a Family Paralegal at Irwin Mitchell LLP, based in the Leeds office. She works closely with colleagues across the country on all areas of private family law, including children law matters and divorce and finances.

She has experience assisting solicitors on complex cases, most notably the High Court case – O v P & Anor [2024] EWHC 1077 (Fam) relating to transgender family law, where they acted for the successful party.

She is a member of the firm’s Complex Children Team of Excellence and International Team of Excellence, which allows her to stay informed about changes to the law and consequently provide high-quality assistance to their clients.