LONDON JUDGES TO RULE ON CLAIM AGAINST MILLIONAIRE FORMER NEW AGE TRAVELLER 22 YEARS AFTER DIVORCE

If you got divorced but did not get a financial settlement or court order dismissing your ex’s claims, an excellent article in the Financial Times 8^th December 2014 page 4 is well worth a read (www.ft.com).

23 years after a divorce, impoverished couple separated, and following a most unlikely set of events, the husband became a millionaire following the success of a green energy business.

When the couple got divorced there was nothing to argue about or divide up so nobody bothered to get a court order dismissing the wife’s claims.

22 years later the wife has made a claim and the Supreme Court will rule on it.

The law is covered by section 25 of the Matrimonial Causes Act which the Judges must take into account when splitting assets.  There is however a “sweep up” clause covering anything that the Judge reasonable wants to take into account and most Judges would definitely take into account the delay of 22 years and the fact that when the couple separated they had nothing.

However is not conclusive.  The Judge may give great weight to that factor, but the fact remains that the couple were married and the starting point in all divorce is 50/50.  But is not the finishing point.  Obviously the millionaire former traveller, will be greatly troubled and concerned.

Even if he defeats the wife’s claim or keeps it to a very small amount, he will still be faced with legal costs because of  each side will pay their own costs.  It could therefore cost him many thousands to defeat his ex’s claim, win or lose.

The moral is that if you get divorced or are involved in dissolution of a civil partnership, get a court order dismissing claims, so that this cannot happen.  A fixed fee solicitor (and there are many in London) could wrap the whole thing up for a few hundred pounds after the Decree Nisi.

The Supreme Court expects a busy few months and is hearing a case brought by the ex-wife of Charles Sharland, and IT software entrepreneur who made several million.

His wife is asking the Court to re-open the settlement on the grounds he did not disclose fully a potential flotation.

It is very important when entering into a Consent Order to pay to the wife an amount and get a settlement, and getting her claims dismissed, that there is full and frank disclosure.

Err on the generous side.  Be optimistic in valuations and cover every possibility or the wife might come back for more.  Again win or lose it could cost many thousands.

Husbands are often reluctant to do this because if negotiations breakdown they could lose out if the Judges take that into account, but this can be cloaked by making sure that the disclosures are without prejudice for the purpose of the settlement and not used otherwise.  This is a skilful technical area which needs expert legal advice which should be taken at an early stage.

Rodney Hylton-Potts has huge experience in the two areas outlined in this blog.  A free legal opinion can be offered and after that highly competitive fixed fee.