Description: Our family department can advise you about any of the following topics:
adoption
pre-nuptial, cohabitation, separation and civil partnership agreements
advantages of marriage
care proceedings - children
The Civil Partnership Act 2004
common-law wife
contact - children
residence - children
change of name
finances on divorce or separation
divorce
divorce and its effect on business interests
injunctions
jointly owned property
judicial separation
legal aid (public funding) - legal help
mediation
specific issue order
parental responsibility
prohibited steps order
Resolution (formerly the Solicitors' Family Law Association)
urgent financial protection
wills

At Canter Levin & Berg we are aware that it is not only a loss of income and other wealth that can result from a divorce but, particularly perhaps for a wife of long standing, there is a significant loss of status. For some, being a wife has been their identity for many years. For such a person a financial settlement of substantial proportions may be the only realistic redress for such personal losses.

A financial relief settlement in court nowadays can result in a carve up of a company in settlement of finances consequent upon a divorce. A recent example of this is the case of Lambert -v- Lambert. In the High Court Harry Lambert, a newspaper proprietor, had to pay ?7.5 million at the conclusion of his financial settlement following divorce. In the Court of Appeal the value of the settlement to Mrs Lambert was increased to ?10 million. Shan Lambert claimed that she made an equal contribution to her former husband's business and was therefore entitled to half its ?20 million valuation. She had been married for 23 years to the founder of the Adscene newspaper chain and the Court of Appeal held that it was important to recognise the value of Mrs Lambert's role in the family.

In his judgment, Lord Justice Thorpe said:

"There must be an end to the sterile asertion that the breadwinner's contribution weighs heavier than the homemaker's."

Nicholas Mostyn QC, who represented Mrs Lambert, told the Court that the law concerning financial settlement should reflect the fact that marriage is a true and equal personal partnership. He said:

"As there is no prospect of legislation to put this in practice, it is for the courts to decide, case by case, precisely what the principles are."

Supporting this approach, the Court held that some reflection ought to have been given to the duration of the marriage and that it had spanned the most productive part of Mrs Lambert's life from 22 to 45. What sort of independent career she had sacrificed was a matter of speculation. The ages of the parties were also relevant (Mr Lambert was 58 when they separated). Mrs Lambert's age along with her needs pointed towards an equal division of assets. In particular, any justification for departing from an equal division could not be upheld without discrimination.

The case provides clear confirmation that application of this principle means that if a business has to go to settle a financial divorce, then it has to go.

As a result, it is entirely possible for a business to be placed into insolvency following a divorce settlement, particularly if the other side wants revenge. Another classic example of this result is a bitter wife reporting the husband to the Inland Revenue for tax evasion. Of course, anyone who takes that risk should be aware of the potential consequences whether as a result of divorce or otherwise. The lesson here is, if at all possible, to not fall out with your spouse, but if you do, to make financial arrangements which make comfortable if not generous provision for the non business owning party.

Financial arrangements can only realistically be made when there has been full and frank disclosure, usually in documentary form, of all relevant financial documents and these should include bank statements, credit card accounts and salary slips etc. Deliberate obfuscation is likely to be found out and will, of course, predispose the court against the defaulting party.

Category: Merseyside

Url: http://www.canter-law.co.uk/

Date: 6 Mar 2006

Current Rating: 1.00

Number of Reviews/Comments: 0