fbpx

Divorce – Financial Proceedings 'Fast Heading for Ritz Hotel Status'

8th September 2022 By

Justice that can be accessed only by the super-rich is not justice at all. A High Court judge made that point in noting that financial remedy proceedings in divorce cases are fast heading for Ritz Hotel status – affordable only by the well-heeled few.

The case concerned a couple whose 12-year marriage was characterised by ever increasing prosperity and an ever more affluent lifestyle. A construction company of which the husband was a 50 per cent shareholder had been phenomenally successful and the couple’s total assets were worth £35,456,884.

Taking into account that the company had been founded by the husband prior to the marriage, the judge ruled that the wife should receive £14,237,623, made up of a transfer to her of the former matrimonial home, another property and a lump sum of over £12 million. Her award represented half of the wealth built up during the course of the marriage and 40.2 per cent of the total assets.

The judge noted that the case involved no complex computational exercise and was straightforward when compared to many high-value divorce cases. The former couple had agreed that the equal sharing principle should apply to the case. However, they had between them run up legal costs in the extraordinary amount of £1,670,380, roughly 5 per cent of their entire fortune.

Emphasising the fundamental principle that those who invoke the rule of law should have true access to justice, the judge noted that there is no such access if justice is only open to all in the same way as the Ritz Hotel. The expense of financial remedy litigation was fast making it the preserve of the very rich. He urged either the Lord Chancellor or the Family Procedure Rule Committee to address the situation in the public interest.

Source: Concious

Latest News

Tenants Can Purchase Freehold When Landlord Cannot Be Found

11th June, 2024 By

The Leasehold Reform, Housing and Urban Development Act 1993 gives qualifying leaseholders the right to join together to buy the freehold of their properties – a process known as collective enfranchisement. A recent case demonstrated that this right can be exercised even when the landlord cannot be found. The leaseholders of two flats in a terraced house wished to purchase it from the landlord, but were unable to ascertain his whereabouts and therefore could not serve notice on him under Section 13 of the Act. They therefore applied for an...

Court Refuses to Set Aside Divorce Order Applied for by Mistake

6th June, 2024 By

While the courts have a range of powers to set aside orders, they will only exercise them in limited circumstances. In a somewhat surprising case that has attracted much comment, the High Court declined to set aside a final order of divorce that had been applied for by mistake. A couple separated in January 2023, after more than 21 years of marriage. In October that year, while financial remedy proceedings were still ongoing, the wife's legal representatives inadvertently applied for a final order of divorce in respect of her instead...

Waiting Time for Grants of Probate Falls

3rd June, 2024 By

Following concerns last year about delays in processing probate applications, recent figures from HM Courts and Tribunals Service show that waiting times for grants of probate are continuing to improve. The average time from submission of a probate application to probate being granted fell to 11.3 weeks in March 2024, a decrease from 13.7 weeks in February and 13.8 weeks in January. This is the lowest figure since March 2023, when the average was 10.8 weeks. The longest waiting time since then was in November, at 15.8 weeks: that month,...

Late Appeal Against Tax Penalties Rejected

31st May, 2024 By

It is incumbent on taxpayers to make sure they fully comply with their obligations to file returns and pay any tax due. The point was illustrated by a recent case in which a taxpayer whose return had not been received by HM Revenue and Customs (HMRC) failed to persuade the First-tier Tribunal (FTT) that he should be permitted to appeal against the resulting penalties. On the evening of 31 January 2014, the man had completed his 2012/13 Income Tax return on HMRC's website. Shortly afterwards he went to Cyprus, and...