The short answer is no – in short childless marriages where both parties have good careers that may not be the case.
The justification for equal division of assets is explored by the Court of Appeal in the case of Sharp (2017 EWCA CIV408).
Both parties were in their early 40s and had no children. The marriage and cohabitation lasted for six years. Both were reasonably well paid but Mrs Sharp was a trader and had received bonuses of £10.5 million during the marriage!
The marital assets on divorce amounted to £5.45 million. Mrs Sharp also had a house worth £1.1million and £350,000 of assets which were pre-marital. Mr Sharp conceded she could keep these and they did not form part of the marital assets.
The case came before Sir Peter Singer in the High Court and he said that the absence of a prenuptial agreement meant that an equal division of the marital assets of £5.45 million was the right outcome.
The Court of Appeal disagreed. They said in short childless marriages fairness could mean a departure from equality. Mr Sharp’s claim was limited to £2 million and Mrs Sharp kept the rest.
The fact that there was no prenuptial agreement was not a material factor. However, had there been a pre-nup there would have been much more clarity and less likelihood of the case ever ending up in the High Court or the Court of Appeal.
For more information about financial settlements on divorce or pre and post nuptial settlements contact Kim Beatson.
* Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*
You are divorcing and want to divide your finances. You have been able to reach a financial agreement with your spouse, but is this binding?
An informal agreement reached between you and your ex-spouse or civil partner will not be legally binding. You will need to ensure that your agreement is incorporated into a Consent Order, which will reflect the agreement that you have reached regarding what will happen to your finances.
The Consent Order will then need to be submitted to the court for approval. There is usually no need for you to actually attend court, as where both parties have received independent legal advice, a judge will be reluctant to interfere with an agreement. A judge will only do so if they have real concerns about the fairness of the agreement.
It is therefore advisable that, even if you and your ex-spouse or civil partner have reached an agreement between yourselves, both of you obtain independent legal advice on the terms of the financial agreement before it is formalised.
You should also ensure that you have exchanged full details of your respective financial circumstances, with supporting documents, so that you have a complete understanding of the overall financial picture. This, coupled with advice on the terms of the agreement, will ensure that you are both aware of the legal consequences of what you are agreeing to, and whether it constitutes a fair settlement.
At Anthony Gold we will ensure that our advice is as cost-effective as possible and work with you to find a negotiated settlement wherever possible, avoiding the stress and expense of having to go to court.