In a recent case where the parties had been married for 23 years, but the husband was 21 years older than the wife, the Court had to consider the fairest approach when considering the wealth acquired prior to the marriage.
Dividing pre-marital wealth in divorce
Case background
At the start of the marriage the husband had substantial wealth having built up his own business and the wife had no assets, other than a car.
At the end of the marriage, the parties had a combined wealth of £9.4 million, the husband was now 80 years of age and the wife was 59.
Courts conclusion
At the final hearing, the Court concluded that there should not be an equal division of the assets, as this would create unfairness for the husband, due to the pre-marital wealth. However, due to the fact that the husband had been obstructive in disclosing his financial information, the Court had difficulty in deciding with precision, what the exact value of the pre-marital wealth was worth. The Court awarded the wife £3.56 million, plus £92,000 maintenance arrears.
The wife appealed and sought an equal division of the matrimonial assets, plus retaining her own non matrimonial assets.
The Court had to consider the best approach to take. Ordinarily in marriages of this duration, the starting position is equality.
The Court dismissed the wife’s appeal, on the basis that the Court were entitled to use a broad, flexible approach in determining the sharing principle in cases involving non-matrimonial property. The Judge was entitled to take into account the husband’s substantial wealth at the start of the relationship and an equal division would be unfair to him.
Comment
This decision although on the face of it seems fair, makes it even more important to obtain legal advice once a marriage has broken down. Often the Courts will considering penalising anyone that frustrates the proceedings and is not open and honest about their financial information. Whereas if legal advice is obtained in the early stages, it is quite often possible to negotiate a settlement and avoid Court proceedings, when those negotiations are fair. If Court proceedings are necessary, legal advice can make the process smoother.
How Nelsons Can Help
If you need advice on separation, divorce or any other family related matter, please contact our Family Law team on 0800 024 1976 or via our online form. The team will then be able to discuss your circumstances in more detail and give you more information about the services that we can provide.