Frances Hughes
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Every divorce lawyer in London knew what the outcome of today’s decision in the Charman case would be: John Charman was bound to lose. The question is, has the Court of Appeal's ruling brought the much-needed clarity to our divorce laws that we were all hoping for? What impact will it have on future big money cases – and on divorces involving everyone else?
In terms of the big issues, the court found against Mr Charman in his attempt to ring-fence the assets in his dynastic trust. This is not surprising, as this part of his claim was unlikely to succeed. All husbands who set up trust funds as part of tax planning already know that they are not ring-fenced, a view the judges clearly endorsed today.
Mr Charman’s second argument was that his financial contribution to the marriage was so stellar that his wife should have received much less, according only to her needs, which he reckoned to be £20 million. The judges not only upheld the High Court’s earlier award of 36.5 per cent of the marital assets to Mrs Charman, but said that in cases where one spouse has made a disproportionate financial contribution to the relationship the spouse who has contributed less should receive between 33.3 per cent and 45 per cent of the assets. That is hugely significant when one considers how vast a figure one-third of the fortune of, for example, Roman Abramovich could represent. Given that pre-nuptial agreements are not legally binding, it means London remains the worst jurisdiction in the world for the super-rich to get divorced.
There were other aspects of divorce law that many were hoping the court would clarify, but it fudged the argument over whether post-separation accruals – wealth accumulated after a couple has split – should be up for grabs in the same way that pre-separation assets are. The court merely said the issue needed clarification and that Charman was not the case in which to clarify it.
Finally, the judges made a plea for a change in the law.
This ruling has not significantly clarified the law and the judges effectively acknowledged that. The uncertainty of the discretionary system for the super-rich is highly unsatisfactory. The judges acknowledged that the House of Lords judgment in Miller and Macfarlane has done nothing but obfuscate the law and they included a heartfelt plea for there to be an urgent review to look at legislative reform.
Will that happen? It is likely to be the view of Gordon Brown that the problems of the super-rich in divorce proceedings should not be a priority for any legislative reform, but divorce lawyers generally consider the Government’s views blinkered in this respect.
When a significant House of Lords or Court of Appeal judgment is delivered, even if the facts don’t fit middle or low money cases there is always a period of confusion while judges and lawyers throughout the country try desperately to apply whatever new principles they can glean from it to all cases. This causes uncertainty and unnecessary legal costs for everyone. It is not just in the interests of the super-rich for divorce law to be settled. Charman continues the uncertainty and Gordon Brown must take all this more seriously.
The author is senior partner at the family law firm Hughes Fowler Carruthers and governor at large of the International Academy of Matrimonial Lawyers
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If this is about fairness, then shouldnt parliament have been consulted first? The only reason BeverlyCharman was able to take so much of her husbands fortune was because of the ruling in 'white vs white' in 2000. Prior to this ruling she would (is my understanding) have been given a 'fair amount' based on what she needed... so my question is... "What is fair, who decides what fair is,and how can 'fair' be the same in every instance?" - it seems in the uk we have no justice, only 'law' - a process that appears to be designed to feed lawyers, barristers and judges huge sums and fees, and for what... really? So in this case a woman can pocket a few million more? Does anyone stop and think of the human cost of people being able, or allowed to drag each other through court like this? Has anybody given a moments thoght to the absolute fact, that in uk, women can simply keep going and going and going at this process... causing the man immeasurable suffering...? Ridiculous comes to mind...
Susan Kundi, london, uk
Women need to be valued for their contributions to society. Any divorce award should be commensurate with the "family" assets. Those who suspend their chances of independent income, pensions and promotion, to bring up their progeny, should be allowed to make claim for equitable renumeration for their efforts. This is so irrespective of gender. All power to her, I say!
Saffron, Lancaster,
It is time this country caught up with the rest of Europe. Any divorce setttlement must have a strict limit upon the length of time a spousal maintenance order is in place e.g half of the length of the marriage (i.e. 14 years married, no more than 7 years of spousal maintenance).
Neil Wills, Oakham, Rutland
'Big money' cases and the ridiculous rulings they drive also affect those of us much lower down the financial pecking order and the effects are much worse. At 51 I take home £2,800per month. I have a large mortgage to pay to replace the house and everything I gave my ex-wife 5 years ago. I have shared care of my 13 year old son and my daughter leaves for university soon. I have been ordered to pay my ex-wife (only 14 yrs marriage) £1,000pm!! and from next year £700pm FOR LIFE. She is only 46 years old and has a 19 years of productive work she can do. She gave up no career when we married. Over the last five years I have already paid her in excess of £60,000 on top of her having the family home, contents, car etc. For part time work plus benefits and the £1,000pm that I pay her, she takes home £2,200pm. Family law in this country is outrageously skewed to the claimant. What happened to the Clean Break? Why would I want to carry on working to fund her easy lifestyle? The system is mad.
Neil Wills, Oakham, Rutland
Maybe that Gordon Brown, being a Scot, will adopt the simplistic way in Scotland, ie that assets at the point of separation are what goes into the 'pot'.
Regarding the stellar contribution point, perhaps the role of a 'housewife', without wishing to be derogatory, needs re-examining... Karen Parlours claim being rather more pertaining than Mrs Charman's.
For me, the Lord's appeal by Mr Charman is doomed, the marriage is simply too long, although it may well press the case for pre-nuptial agreements to be introduced.
Mark, Hampshire, UK