During a marriage, often one person will earn more than the other, either through simply having a higher paid job or being exceptional in the business world. If that person is able to save more money or purchase properties, an issue can then arise when the marriage ends and that person wants to then try and claim that they are entitled to a higher share of the assets due to their ‘hard work’.
In a reported case in November 2018, the Court had to consider that very point.
Sharing Assets On Divorce – Case Law
The couple had only been married for 4 years but had been living together for 10 and they had not had any children during that time. They had combined assets of just over £38 million but the husband had generated the majority of that investment through his company, as a successful software engineer.
The wife initially sought a lump sum of £16 million, on the basis of needs and sharing.
The husband offered £4.5 million on a needs basis and he argued that he had made a special and unmatched contribution to the marriage, in that he had established his company prior to the marriage. He invited the Court to find that the company’s value at the time of the marriage should have been excluded from the matrimonial pot. The parties accepted that the wife’s contribution was domestic, whilst the husband’s contribution was by way of unmatched capital.
The Judge considered the approach to take using the sharing principle and that when the assets are substantial, the needs of both parties can easily be met, so the assets should be divided equally. The Judge also stated that it was acceptable to identify non-marital assets where it was appropriate and concluded that each case needs to be taken on their own specific facts and the longer the marriage has lasted, the less likely specific contributions would be relevant.
Further information on dividing assets on divorce can be found here.
How Nelsons Can Help
Due to the fact that the Court has a lot of discretion when deciding how to share assets, it is very important to seek legal advice so that issues can try to be resolved as quickly as possible, thereby avoiding unnecessary legal costs.
If you need advice on separation or any other family law related matter, please contact our expert Family Law team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form. They will be happy to discuss your circumstances in more detail and give you more information about the services that we can can provide.