Hartnell Chanot: Divorce/Family Law Solicitors Exeter, Devon

The price of divorce!

Thursday, 08 June 2006 02:00

The glamour of million-pound divorces has attracted a lot of media attention recently, when ground-breaking judgments ruled in favour of the ex-wives of two high-earning men, giving them the right to a large amount of their former husbands' wealth.

The new ruling made by five Law Lords in May, will have significant implications for wealthy couples who own land, businesses and property, giving husbands and wives equal shares of their assets in divorce; immaterial of behavior or length of marriage. Experts now predict more rich men spurning marriage and insisting on prenuptial agreements.The decision has been heralded as a victory for women, as the new rulings acknowledge the valuable contribution made by wives who give up potentially lucrative careers to raise children. Until now, maintenance for a stay-at-home mum was based purely on her living costs but now she is entitled to compensation for her sacrifice. The decision also recognises that marriage is a partnership and a short marriage is no less favourable than a long one; the ex-spouse is entitled to a share of the wealth built up during the marriage and that conduct in the marriage is relevant only in the rare cases where it was obvious and gross.Couples on low incomes have nothing to fear from the ruling, although the division of finances remains one of the biggest worries alongside children when a marriage breaks down. There are no specific rules about how assets should be divided but the courts generally give priority to the needs of any children.

To achieve a realistic picture of ones financial situation, it is important to make a list of all the debts and assets of both parties including: the net equity in the house, surrender values of any endowment policies, current values of any savings, shares, unit trusts, investments, other property, cars, antiques, jewellery etc and the “transfer value” of all pensions of both parties. If either party has any business interests, a rough value and three years account are required.

It also helps to think about any important financial or other contributions that you brought to the marriage, such as giving up a career to look after children. The courts will also takes into account a number of factors, including the reasonable needs of each party, the parties’ earnings and earning capacity, financial obligations and state of health, and the standard of living enjoyed by couples before their divorce

It is important to remember that a specialist family lawyer can help couples reach an agreement about finances saving a lot of time and emotional distress, and that a court can only divide up what is actually available.

For free initial advice please call one of our specialist family lawyers at Hartnell Chanot & Partners on 01392 421777.