Month: March 2018

*Based on a real case, the clients’ name and other details have been altered

At Lawson West our Family Law team deal with a variety of cases that vary in complexity and cost. The following case study is based on a separation where one party earns considerably more than the other, it looks at what factors are important when considering the division of matrimonial assets and in this case, how they are divided.

BACKGROUND OF THE CASE

Mr Jones, aged 42 is a hospital consultant and his wife Mrs Jones, aged 51, a self-employed Marketing Consultant. They met 2 years before their wedding and after 9 years of marriage took the decision to separate; they have no children. Mrs Jones commenced divorce proceedings for reasons that are irrelevant to the division of matrimonial asset.

Mr Jones earns £120,000 per year.

Mrs jones earns an average of £10,000 per year.

The couple’s main assets consist of the following;

• The former matrimonial home, in Mr Jones’ sole name, with a net value of £208,000 (after deduction of mortgage)
• A flat occupied by Mr Jones to make his commute to work easier with a net value of £70,000 (after deduction of mortgage)
• Combined savings of £43,000 – Mr Jones £7,000 & Mrs Jones £37,000
• Mr Jones’ NHS pension – £362,000
• Mrs Jones’ pension – £189,000

CONSIDERING THE DIVISION OF MATRIMONIAL ASSETS

One of the decisions to be made, relates to the properties; should either or both of the two properties be sold and if so how would the net proceeds of the sale(s) be divided between the couple.

Their pensions also required careful consideration.  As a result of the high values in both pension funds it was necessary to obtain the report of a Pension Actuary who was able to calculate what amount needed to be transferred in order to even up their pension provision. It needed to be decided what percentage of Mr Jones’ pension should be shared with Mrs Jones. During the course of the marriage they had each contributed different amounts of money to their pensions, largely because Mr Jones’ income was significantly greater than that of Mrs Jones’.

The court was required to look at each parties’ respective needs. The agreement that was reached did not involve Mr Jones having to pay any maintenance to Mrs Jones, therefore he achieved a ‘clean break’. A clean break means that in the future Mrs Jones would not be able to apply to the Court for Mr Jones to pay any maintenance and neither party can make any other type of financial claim against the other. An order of this kind is important when two parties get divorced because it severs the financial link between the couple and prevents any further claims being made many years later.

To achieve a clean break, it meant that Mr Jones had to sacrifice the majority of the matrimonial assets. This was justified principally because Mr Jones has a higher income and therefore a greater capacity to borrow by way of a mortgage to rehouse himself as well as being younger so having more time to repay a mortgage.

THE DIVISION OF MATRIMONIAL ASSETS

After all things considered the following outcome was reached;

The former matrimonial home was sold, and the net proceeds were divided.

– £179,000 to Mrs Jones and £29,000 to Mr Jones

Mr Jones kept the second property worth £70,000

Mrs Jones received a pension transfer of £27,000 from Mr Jones pension fund into a pension fund in her own name.

In summary each party received the following;

Cash to Mrs Jones – £215,000

Pension provision to Mrs Jones – £286,000

Cash to Mr Jones – £106,000

Pension provision to Mr Jones – £264,000

COSTS INVOLVED

This case was highly complex and therefore, the costs incurred, were significant.

Actuarial Report – £1,000

An application was made to the court and in this case required two court attendances in which a barrister represented Mr Jones.

Court Fees – £1,500 + £1,800 Inc. VAT = £3,300

Other costs for conducting the case – Over £12,000 +VAT

The cost of this case was high, and the vast majority of divorce cases cost much less.

Usually they are resolved at a much earlier stage of the proceedings compared to this case and if you can make agreements without an application to the court it is a lot less expensive.

Another important note to take from this example it the importance of severing financial ties. A Decree Absolute of Divorce dissolves the marriage; however, it does not end the financial link between the two parties. This is a fact that many people do not realise and can be stung by many years later.

Lawson West’s Family Law team have a wealth of experience and knowledge in relation to separations and will use their expertise to ensure you get the fairest share possible during the division of matrimonial assets. Arrange an appointment at a time and place to suit you today by calling 0116 212 1000.

 

With the first school holiday of 2018 having already taken place, and the Easter break approaching quickly, many parents may be planning their next holiday with their children. But, when parents have separated this may not be an easy task. Consideration needs to be given to how much time the children will spend with each parent which can often lead to disagreements. 

In order to avoid any conflict, it is always recommended that these arrangements are planned as early as possible. Giving notice of planned holidays to the other parent can often avoid fallings out meaning that arrangements can then be made with both parents feeling they have been given an equal opportunity to share quality time with the children. 

If however the disagreement continues it is important not to delay moving matters forward, initially to mediation and as a last resort, to the court. 

At Lawson West, we aim to help you reach an amicable solution, giving sensible and practical advice. We strive to help families move forward and in doing so try to minimise conflict. We appreciate however, that sometimes applications to the court are required, and in these circumstances our experienced solicitors will represent your best interests using their extensive knowledge to guide you through the process. 

We know that every case and every family dynamic is different, the advice and support that we offer will reflect this.

Your case will be handled by one of our highly skilled family solicitors who have all been practising family law for a number of years.  

Lawson West Family Solicitor Sarah Townsend shares her top five tips for making holiday arrangements:

1. Discuss before booking, this will often avoid conflict and will hopefully result in dates that can be agreed.
2. Agree the arrangements as soon as possible. This will allow time for court applications should they be necessary. 
3. Provide the details of the holiday to the other parent. Knowing where the children will be and contact details for them will be reassuring.
4. Make arrangements for the handover of the child’s passport if the holiday destination is abroad.
5. Offer arrangements for FaceTime/Skype or telephone contact with the other parent while away.

You can contact Sarah, or Elizabeth, for an appointment at our Wigston office on 0116 212 1080, Alistair at our Market Harborough office on 01858 445 480 and James at our Leicester office on 0116 212 1000.

Alternatively, visit the family law pages on the Lawson West website https://www.lawson-west.co.uk/for-people/services/divorce-and-family and complete an online contact form.

Lawson West are members of Resolution who are an organisation who promote collaboration from both parents in order to reduce any animosity and to help both sides reach an agreement where possible.

We also work closely with CAFCASS who are the Children and Family Court Advisory and Support Service. They represent children who are involved in family court cases to ensure that the children’s voice, opinion and feelings are heard and acknowledged.

Support is available with all areas of childcare arrangements, be it generally or specifically during school holidays. Lawson West offer an initial no-obligation appointment costing £100 +VAT at a day and time to suit you providing the opportunity to find out about all support services available. 

Photo credit: Chris_Parfitt on Visualhunt /  CC BY