Divorce and disclosure

A recent case highlights the importance of making full disclosure of assets and future financial prospects during divorce proceedings, to avoid a legal battle.

The case involved a couple who had met at university and married. They both worked initially but the wife gave up work when she had children. The husband was a stockbroker, and the majority of the couple’s assets were tied up in the family home so a clean break was not possible.

The court therefore ordered the husband to pay his wife a fixed sum per year, plus the children’s school fees. She kept the house, with the provision that if it were sold, he would get a percentage of the gross sale proceeds.

Within a fortnight of the financial provision order being made, the husband started a new job at a higher salary. The wife then sought to have the order set aside, arguing that she would have rejected the financial settlement had she known he was in negotiation for a better-paid job.

The court ruled that the husband had in fact breached his duty to disclose material information. However, the court further judged that the job offer had not affected the proposed financial settlement, since the man’s earnings would also have risen had he stayed in his previous job. The difference between his new earnings, and what he would have earned in his last position was not substantial enough to set aside the original financial settlement.

If you’re considering divorce and would like some advice regarding financial settlement and your obligations, please contact James Haworth on 0116 212 1080.