Read the latest articles on Family Law from our expert Family Law solicitors here at Evolve Family Law in Manchester & Cheshire.
We put a lot of family law legal information on our website and if you have a single question about your situation, you should find an answer in this blog.
If you need a greater level of help, please contact us and one of our team will call you to make an appointment.
Divorce and debt sounds a depressing topic. However, it is a subject that has to be discussed by many couples who are thinking about separating or getting divorced.
Putting off a separation or divorce because you are in debt is rarely a good idea unless you think that the marriage still has a chance of working. If you think your judgment is impaired by the debt, it is sensible to take advice on your options.
Debt and divorce proceedings
Many Whitefield divorce solicitors find that debt is one of the major reasons behind the decision to start divorce proceedings. For example:
A spouse may have hidden spending from their partner so they have lost trust in them;
Family debt has arisen and because of financial pressures, arguments have escalated.
Debt issues can be included in a divorce petition based on a spouse’s unreasonable behaviour. There is often a reluctance to agree to a divorce if allegations are made about debt and spending.
When a couple agree that a marriage is at an end the simplest solution is for the respondent to the divorce proceedings to agree to the divorce and to say that they do not accept the debt allegations in the divorce petition. That way the husband and wife avoid the cost of contested divorce proceedings. However, the respondent to the divorce petition can argue his or her case in any later financial court proceedings.
Debt and financial disclosure
If you are negotiating a financial settlement or asking the court to make a financial court order, it is vital that all debt is disclosed. In financial court proceedings, financial disclosure involves giving information about assets and debts.
Debt can include joint debt and individual borrowings. Debt is not just overdrafts and loans but includes credit and store cards, gambling debts, money owed to family or car loans and hire purchase commitments.
As well as providing details of the debt, it is important to disclose how much is repayable each month and the debt repayment date. Without that additional information, financial settlement options cannot be explored.
Am I liable for the debt in my spouse’s name?
If your spouse took out loans or debt in his or her name then the person or organization owed the money cannot pursue you for recovery of the debt unless it is legally assigned to you.
However, in family court proceedings the judge can take into account debt in one spouse’s sole name. The court may have to decide if the debt is ‘’family debt’’ or ‘’non-family debt’’. For example, if a wife took out a credit card to pay for family holidays and clothes for the children the court is likely to class the loan as family debt even if the husband did not agree with all the spending. However, if a loan was used to buy presents for a new partner or furniture for a new house it is likely that it would be viewed as non-family debt.
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What happens to non-family debt in divorce and financial court proceedings?
If you can establish that a spouse has incurred debt purely for their benefit then a divorce solicitor can argue that the debt should be ‘’added back’’ to the assets of the person who incurred the debt.
Normally the divorce court will only add back non-family debt to the family asset pot if the expenditure was wanton and reckless.
Non-family debt can be a highly emotive topic. However, it is always important to weigh up the extra legal costs involved in analysing the debt and the benefits to be gained from pursuing the legal argument.
Your divorce solicitor should help you stand back from the situation to work out if it is in your financial interests to pursue the argument. It will all depend on the amount involved, how ‘’reckless ‘’ the expenditure was and the potential additional legal costs.
For help with divorce proceedings or financial settlement solutions and financial court orders please contact our divorce lawyers today.
It is difficult if you are getting divorced or are contemplating separating from your husband or wife, to answer the question "Can I give property to my relative?’’. On the one hand, you do not want your marital troubles to affect your decision to give money or property to a relative. On the other hand, you do not want your actions to appear as if you are deliberately trying to give assets away so your husband or wife will not be able to make a financial claim against the asset in any subsequent divorce and financial proceedings.
Our Manchester divorce solicitors acknowledge that it is a tricky issue. What can be a genuine gift to a relative can be perceived as a clever ploy to reduce a divorce financial settlement. In other cases, a gift of property or money to a relative can easily be seen as a clumsy attempt to try to defeat a spouse’s financial claim. Take the case example of a husband transferring his share in a property investment portfolio to his wealthy brother, the week before the husband leaves his wife. If a husband or wife wants to make a claim against the property given away to an elderly or impoverished relative, the spouse can be viewed as greedy. Take the case example of a wealthy husband and wife, where the husband paid for his parent’s council home so his parents could own their own home and have security.
There are many examples of where either a husband or wife has given money to a relative, only to find that their spouse challenges the gift in later divorce financial proceedings. Take the real life case of lawyer, Melanie Panzone and her former husband and banker, Jonathan Read. He bought a holiday apartment in Panama for £300,000. Fair enough, you might think. However, ownership of the apartment was put in his mother’s name. Mr Read said it was a thank you for all his mother had done for him.
A family judge ruled that Mr Read beneficially owned the apartment. This meant the asset was brought into the equation in the divorce financial settlement. Mr Read’s mother disagreed with the ruling of the first and second family law judges. She has appealed the decision to the court of appeal. If the court of appeal agrees with Mrs Panzone’s mother in law, then the holiday home apartment may be transferred back to her.
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Property division in divorce: Can I give property to my relative?
The case of Mrs Panzone and her ex-husband, Mr Read, and Mrs Panzone’s mother-in-law demonstrates what can happen if you give money or property to a relative, even if the transaction takes place prior to the breakdown of the marital relationship.
Our Manchester divorce solicitors recommend that if you are contemplating a separation or are already going through divorce proceedings that you take expert legal advice before giving property or money to a relative. That is because if the gift is thought, by your ex, to be a device to reduce the size of their financial settlement, they could ask the court to set aside the property transfer and your relative could be invited to intervene in the divorce financial proceedings. That can add to the cost and the complexity of the financial proceedings.
Sometimes giving money to a relative whilst in the midst of divorce proceedings is the best way to resolve a financial impasse with your husband or wife. If you are not able to reach an agreement over whether a spouse should receive £x or £y as their financial settlement, the solution may be to give the difference to the adult children to fund a house deposit or to pay off part of their mortgage. After all, you may find with a bit of communication between husband and wife that they both planned to help their adult children with a lifetime gift.
The key to successfully giving property to a relative is to:
Take legal advice before making the gift – this applies whether or not you are contemplating a separation at the time that money or property is given away;
Discuss your plans to give property to a relative with your spouse and other key family members;
Record the agreement and the basis of the transfer of property to the relative – although the record of the agreement will not mean that your spouse cannot challenge the transfer it is evidence of the rationale behind the gift;
If you are concerned that your spouse might challenge a large gift of money or property to a relative or the transfer of a large part of wealth into a discretionary trust then take legal advice on the option of a post nuptial agreement. The agreement could simply record that your spouse accepts that the transfer is a genuine gift to your relative or could be more wide ranging and set out how your remaining assets will be divided between you if you later decide to separate or divorce. A postnuptial agreement is just part of sensible estate planning, in the same way as making tax efficient lifetime gifts to relatives or making a Will.
For legal help with financial settlements and divorce, for help in intervening in financial proceedings or for advice on drawing up a postnuptial agreement please contact us
We are delighted to highlight that some good news has come out of Europe. New EU regulations have been set out to help protect children and parents involved in cross border child custody and access disputes.
Protecting children in cross border disputes
On the 25 June, the Council of the EU adopted a revision of a regulation setting out rules on the jurisdiction, recognition and enforcement of decisions in:
Matrimonial matters;
Parental responsibility matters;
Intra-EU child abduction
The council said that one of the main objectives of the revision to the EU regulation was to improve the current protection that EU directive gives to children in cases of cross-border children disputes, for example:
Custody (nowadays referred to as residence or a child arrangements order in the UK );
Access rights (nowadays referred to as contact or a child arrangements order in the UK );
Child abduction.
The focus of the new EU regulations is to ensure when resolving cross border children disputes involving more than one EU country that :
The focus is on what is best for the child;
Judicial co-operation between EU countries is faster and more efficient to make sure the child’s well-being comes first. It is anticipated that speedier court decisions will be made through abolishing the requirement for an exequatur (an intermediate procedure required to obtain cross-border enforcement).
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People often assume that EU law will not affect them and their families but statistically there are about 140,000 international divorces per year. It is reported that there are about 1,800 cases of parental child abduction in the EU. The number of international divorce cases rises each year as people become increasingly mobile because of work and travel opportunities.
With the update of the Brussels IIa Regulation, the intention is that a child abducted by one parent from an EU country and taken by the parent to another country within the EU will be returned much faster to the country where he or she is used to living in.
Top Manchester children solicitors have welcomed the new EU regulation but have issued a note of caution. UK families caught up in EU cross border disputes will only get the protection and assistance of the new regulation whilst the UK remains in the EU. Subject to Brexit, the additional protection may be short lived. That will not stop child custody solicitors from fighting to reunite parents and children caught up in cross border child custody and access disputes.
The top tip if you fear child abduction or need to enforce a UK custody or child arrangements order across different border jurisdictions is to take early specialist child custody legal advice on your options and to act quickly.
For legal help with child custody and access or child abduction please contact us
The case of three siblings who ended up in court over their late mother’s Will emphasises the importance of professional Will writing and highlights the challenges involved in claims against estates and contesting Wills.
The Burgess family featured in the papers as two of the three siblings argued that their late mother’s £1.5 million estate should not be divided equally between them after Probate . Two sisters said that their brother, a wealthy former British Airways pilot, should get less than them as they were not as wealthy as their brother.
A reading of the Burgess case will help most people realise just how important it is to get professional legal advice when drawing up a Will. It is especially important to do so if you know that there is a chance that the Will could be challenged and a claim made against the estate.
The Burgess case
Chris Burgess was initially left £300,000 of his parents' £1.5 million estate in their mirror Wills. The couple made Wills leaving the lion’s share of their money to their two daughters because Jim and Freda Burgess thought their two daughters needed the money more than their son did.
After former solicitor and judge, Jim Burgess died, leaving his estate to his wife, Freda, she decided to change her Will to share the estate equally between her three children.
When Freda died in 2016, aged 90, her Will left the estate equally between the three siblings. This meant that each child would get about £500,000 rather than the son, Chris getting £300,000 and the two daughters £600,000 each. The daughters challenged their late mother’s last Will and the family ended up in court.
Grounds for contesting a Will
To contest a Will you have to be able to prove that there are valid grounds to do so, for example:
The Will maker lacked testamentary capacity; or
The Will was not executed properly; or
The Will maker was unduly influenced to make the Will; or
The Will was fraudulent or forged.
In the case of Freda Burgess it was alleged that:
At age 90 , Freda was too old and vulnerable to change her earlier Will leaving just £300,000 to her son, rather than an equal share of the estate;
The Will was not properly executed, as one of the witnesses had not seen Mrs Burgess sign the new Will.
The High Court judge decided that Freda Burgess’s last Will was not valid because it had not been executed properly. However, the judge concluded that Freda Burgess had known her own mind at age 90 when she decided to leave her estate equally to her three children. That meant the shredding of the first Will (that left the son about £300,000) was valid and the first Will was therefore revoked. What is more, as the second Will had not been executed properly Freda Burgess had not left a valid Will in existence at the time of her death.
Without a valid Will in place, Freda Burgess’s estate will pass in accordance with intestacy rules, meaning that the estate will pass equally to the three children.
The court result and the amount received by the three siblings would have been different if the court had ruled that Freda Burgess lacked capacity to revoke her old Will and make a new one.
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The lessons from the Burgess case
What can be learnt from the Burgess case? The Burgess case emphasises a few things:
It is vital that a Will is executed properly. A solicitor will not only draw up a Will for you but will check that it is executed properly;
If the Will maker is elderly or frail it can be sensible to get a doctor to confirm that the Will maker has testamentary capacity to make a Will;
If a Will maker is elderly or vulnerable it is important that they get independent legal advice on their Will;
If a Will maker is leaving a Will that they think may be challenged it is important that they explain why that they are making the provisions in the Will. The explanation does not need to be in the Will but can be contained in a separate private letter to the executor of the Will.
For legal help with claims against estates, challenging a Will or estate planning please contact us
When it comes to choosing a family solicitor where do you start? Well there are many ways, from phoning friends and family, to scouring the internet or even picking up the phone and speaking to one of the family law firms that advertise on the back of buses or at hoardings at the railway station.
Those may be some ways to choose a family solicitor but I suspect that using those methods you will not chose one that is necessarily right for you.
Why it is so important to choose a family law solicitor that is right for you
Getting divorced or taking part in children or financial court proceedings is stressful. It is still going to be tough, whatever family law solicitor you chose. However, the process will be easier if you find a family law solicitor you can work with and feel comfortable instructing.
Some family law solicitors may be great academic lawyers but you do not feel able to talk to them and tell them about personal matters or tell them what you want. Other family law solicitors may offer cheap price divorce and financial settlements but you may question how approachable they are and if you are getting the best service.
Questions to ask when choosing a family law solicitor
When you chose a family law solicitor, you are likely to be working with them for some time so it is important to choose with care. I deliberately say ‘’working with’’ as a family law solicitor should not tell you what to do. Instead, they should talk to you about what information is needed, assess your legal options, and help you make informed choices, whether that is a referral to mediation, the commencement of court proceedings or an agreed financial settlement.
Who will you be instructing?
That is not as stupid a question as it sounds. In some family law firms you may see a partner on the first meeting but not speak to them again as they will delegate the work to a junior solicitor or paralegal. That can be frustrating if you chose the firm based on the recommendation to an individual family solicitor or thought that the price quoted for the advice was based on an experienced senior solicitor carrying out all the work for you. Many family solicitors delegate work and normally it is in your interests that they do so, but you need to understand who will be helping you.
Is the solicitor a specialist?
Most people assume that a solicitor knows what they are doing but is your solicitor a specialist in family law. Do they do a bit of family law as well as property law and Wills? Nowadays professionals will specialise in one area of law. In large firms or niche family law firms, you will find solicitors that specialise in child law or child abduction or financial settlements or prenuptial agreements.
You may not think that your situation is so complicated that you need a specialist but a specialist solicitor may be more efficient in resolving your legal problem or come up with potential solutions that you have not thought of.
Has the family law solicitor provided the cheapest quote or lowest hourly rate?
When it comes to choosing a solicitor the one who quotes the cheapest price for the job or the lowest hourly rate will not necessarily end up as the cheapest solicitor.
The old adage ‘’ you pay for what you get’’ applies. If you chose a solicitor with a lot of experience they may quote a higher hourly rate than a junior solicitor may but they should be able to focus on the key issues and help you reach a speedy resolution, rather than end up in court proceedings.
If you are offered a quote for the ‘’job’’ check there are no hidden extras such as court fees or VAT. Also, check to make sure what the quote covers. It pays to read the fine print in a price guide as if you are offered a fixed fee divorce does the quote cover meeting a solicitor or being able to ask questions, or will your instructions be processed online or via a call centre.
How does the family law solicitor propose to resolve your case?
This question may sound like another daft question but it is not. If the solicitor talks of court proceedings as the only option then their ‘’can do’’ attitude may be appealing to you. However, court should be seen as the last resort.
Court proceedings are expensive and no solicitor can guarantee an outcome. A solicitor, who takes a more measured approach and talks of the keys issues and how to compromise to reach a negotiated settlement, whilst still achieving your goals, may get the same result for you, but without the expense and trauma of court proceedings.
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Do you like the family law solicitor?
Liking your family law solicitor is not an essential part of choosing your solicitor but it does help to either like or respect them. After all, you will be working with them, as a team, so you need to be able to talk to them about your personal and financial affairs and have confidence in them.
If you like your family solicitor then it makes it easier to reach a children or financial settlement. That is because when they suggest a compromise or a solution you know you will feel comfortable discussing the pros and cons with the solicitor and can have an honest discussion about whether or not you would get a better deal by going to court.
Remember though, however much you like your solicitor you are the one who is in charge. They may offer advice, support and guidance on your legal options but the choice is yours.
For information about how Evolve Family Law can help you, please contact us
Deciding whether to separate is never straightforward, whatever your circumstances. Sometimes the decision is not of your making and that can be as difficult to come to terms with.
At Evolve Family Law, we talk to clients who are:
• Not sure of what they want to do; or
• Clear that divorce is the right option for them; or
• Have been separated for many years and want advice on changing or enforcing financial or children court orders.
Many people are wary about taking divorce advice because they think they should know what they want to do before they see a solicitor. That is not the case. Experienced solicitors always like to discuss options so you can make an informed decision about what is right for you.
Should we separate?
That is a tough decision that only you can make. As experienced Manchester divorce solicitors, we can talk to you about your legal options and potential outcomes. Many people canvass views from friends and family when deciding whether to separate. Everyone has his or her own experiences and agenda but what Evolve Family Law will not do is push you into a separation or divorce.
When should I tell my partner?
Timing can be crucial, as you may want to think about making sure that you have access to funds, your paperwork and possessions before talking to your partner. You may also want to make sure that you or your partner can have space away from one another. For some people that involves making sure they can stay with friends or family or that their partner can do so. If you are worried about your partner’s reaction, you may need an injunction.
Talking to the children
Ideally, parents should talk to children together so that the children know that both parents are going to continue to look after them, but in separate households. There is a lot of information and support available for both parents and children to help parents answer children’s questions in an age appropriate way.
Leaving the family home
It is always sensible to take legal advice from a Manchester divorce solicitor before leaving the family home. Many people think that if you leave the family home you will lose your claim to a share of the property. That is not the case but the decision to leave the family home can have a big impact on the children and on how long it can take to reach an agreement. Legal advice is therefore key to making the right decision, rather than feeling pressurised or desperate to leave, as you do not know your options.
Secure your computer and your documents
If you take the decision is taken to separate you may want to keep some information private. Think about changing passwords for your phone, laptop or computer.
At a later stage, you will need to provide your financial documents and paperwork. If you are concerned that your partner may remove your paperwork make sure that you put it in a safe place as it can take time to obtain duplicate information.
Joint bank accounts and credit cards
If you and your partner have joint bank accounts and credit cards you may want to think about making sure that funds are not taken from the accounts. Ideally, this is something that should be agreed. However, if you fear that funds could be taken then accounts can be frozen or overdraft or credit facilities reduced.
Many couples who are able to split up on an amicable basis continue to use a joint account until they reach a financial settlement. This is not appropriate for all families.
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Maintenance and child-support
People worry about paying bills if they split up from a partner. Ideally, after taking legal advice, you and your partner will discuss financial support to include spousal maintenance or child maintenance until you decide, on a long-term basis, how assets and property should be split.
Taking advice from a Manchester divorce solicitor will help you know what is fair and reasonable. If you cannot reach agreement then mediation may help you sort out temporary financial arrangements. If you and your partner struggle to agree then the court can make temporary financial support orders.
Whether you decide to separate, divorce or stay Evolve Family Law can help you explore your legal options so you can make an informed decision.
For legal help with divorce proceedings and financial claims or childcare arrangements please call Contact Us Today
As a Manchester divorce and family finance solicitor I spend my days negotiating financial settlements or representing clients in divorce and financial court proceedings. However, after many years of experience in family law, I appreciate that even after you have secured a financial court order it is not over until a husband or wife has received their divorce financial settlement.
The high profile case of Farkhad and Tatiana Akhmedova really emphasises just how difficult it can be to enforce a court order and get the money after a divorce financial settlement.
The case of Farkhad and Tatiana Akhmedova
In 2016, an oil and gas tycoon, Mr Akhmedov, was ordered to pay about 40% of his wealth to his wife, Tatiana. The award by the high court in London was hailed as one of the biggest divorce settlements at the time that it was made .That is because the Russian billionaire had been told by a London judge to hand over about 453 million to his ex-wife.
Roll on two years; Mr and Mrs Akhmedov have hit the headlines again. Mrs Akhmedov has finally received some of her divorce financial settlement. The path to her getting the money has been far from straightforward. Mr Akhmedov reportedly did not agree with the court decision, believing it to be wrong.
That left Mrs Akhmedov with a financial court order that said she should get a 90 million-art collection, property in England worth 2.5 million, a £350,000 car and a 350 million cash payment. However, the reality was that she had little more than a piece of paper from the court that was only worth anything if it could be enforced.
Applying for a freezing order after the settlement
As Mr Akhmedov had not complied with the financial court order and handed over the cash and property in accordance with the financial court order Mrs Akhmedov applied for a freezing order. She then employed specialist asset tracers to try to locate and unravel ownership of assets to ensure that she got her financial settlement.
Although the figures for Mr and Mrs Akhmedov are eye watering it is nonetheless the case that freezing orders have to be considered either during or after financial court proceedings. After all, there is little point in obtaining a financial court order if it cannot be enforced because the assets have disappeared through sale or transfer to third parties.
Recovery of assets after the divorce settlement
The asset tracers employed on behalf of Mrs Akhmedov have recovered a helicopter that was used to transport people to Mr Akhmedov’s yacht. It is reported that the sale of the helicopter has raised just under 5 million. The yacht is impounded in Dubai. There is ongoing legal argument over seizure of the 300 million super yacht and the recovery of other assets.
Enforcing the court order
You may wonder why Mr and Mrs Akhmedov are locked in such an expensive court battle. The rationale behind Mr Akhmedov’s objection to complying with the London financial court order is, at its simplest, that he does not believe the London high court had jurisdiction to make the financial court order for a variety of reasons. Furthermore, Mr Akhmedov maintains that the assets are held in trust or by companies and therefore the financial court order cannot be enforced against them.
Enforcing court orders: getting the money after a divorce financial settlement
You may question how the case of Mr and Mrs Akhmedov is of relevance to anyone other than Russian oligarchs. However, the principles of enforcing court orders and getting the money after a divorce financial settlement are just the same whether you are seeking to recover multi millions or thousands of pounds.
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Tips on enforcing court orders after a financial settlement
In my experience when it comes to getting your money after a financial court order it is sensible to:
Plan ahead : ideally you should take legal advice before you separate so that you know where you may stand financially ;
Get a tenacious solicitor : you will need a solicitor who is proactive and a specialist family lawyer if you need to try and find assets during the financial court proceedings and recover assets after the financial court order has been made;
Think about enforcement and recovery when negotiating the financial settlement: sometimes you want the holiday property in Barbados as part of your divorce settlement. It does however reap rewards if you think about how easy it will be to enforce the court order before you finalise the financial settlement;
Take advice on injunctions to preserve assets: if you fear your spouse will deliberately sell or transfer assets to defeat your financial claims you can apply for what is known as a section 37-injunction order;
Take care with the wording of the financial court order: make sure that the order is expertly drawn up to help with enforceability. For example , if the court order says the family home is to be sold anticipate issues and have clauses put in about how the sale price will be determined or what happens if you receive offers on the property and cannot agree on the sale price;
Do not delay: if you have a financial court order and it has not been complied with in the court ordered timetable do not delay in enforcing the court order. Delay may be very prejudicial to you, for example if your spouse is at risk of bankruptcy or might leave the UK making it harder and more expensive to trace assets.
It goes without saying that as well as needing a tenacious divorce and family finance solicitor you also need to be equally tenacious and patient. These are skills that Mrs Akhmedov has probably had to learn since her 2016 financial court order.
For legal help with financial claims in divorce proceedings or enforcing financial court orders please Contact Us Now
It is often assumed that divorce and family money in trust is the preserve of the ultra-wealthy but that isn’t always the case as was established by the court proceedings concerning Henry and Ellen Wodehouse. It is reported that the money placed in trust by the late Earl amounted to about £600,000 but the trust fund was a discretionary trust with 15 potential beneficiaries including Mr Wodehouse’s stepmother.
Henry Wodehouse, the third son of the Earl of Kimberley, whose claim to fame was that he was the most married UK peer having tied the knot 6 times before his death , has hit the headlines as a result of his own divorce. Why is that newsworthy? Henry Wodehouse’s divorce has hit the headlines because the financial battle between him and his estranged wife centred on money held in trust, set up under the terms of his late father’s Will.
The case of Henry and Ellen Wodehouse was the subject of media reporting after it was said that Mrs Wodehouse was reduced to living on her brother’s boat after losing a Court of Appeal case that centred on whether she should get a £90,000 payment.
Trusts are also often thought of as ‘’old money’’ but in Mr Wodehouse’s case the money had been placed in trust by his late father, rather than generations earlier.
When a family court considers divorce and trusts the court’s first consideration is whether the trust is a nuptial trust or a non-nuptial trust. If the court finds that the trust is a nuptial trust the court has wide powers and can change who benefits from the money in the trust. If the trust fund is found to be a non-nuptial trust then the family court powers are far more limited. Normally the court would focus on awarding the spouse who was not a beneficiary of the trust fund all or a greater share of the family assets , on the basis that the spouse who was a discretionary beneficiary of the trust fund would likely receive either capital or income distributions from the trust fund.
Sadly that solution didn’t work for Mrs Wodehouse as, other than her husband's very modest pension, there were no other assets as all the equity in the family home had been eaten up by secured debt, leaving the trust fund as the only asset of substance until the Court of Appeal ruled that the particular trust was of a type that could not be ordered to pay Mrs Wodehouse a lump sum payment or be ordered to pay the amount to Mr Wodehouse to then hand over to his ex-wife.
Mr and Mrs Wodehouse married in 1992 and separated in 2011. During the marriage Mr Wodehouse had his share of financial difficulties, being made bankrupt in 1990 and 2010. Mrs Wodehouse had health problems making working difficult. The couple went to court to sort out how their property and money should be split. It was ascertained that whilst they owned a family home there was no money in it as there was more debt secured against the house than equity in it. Where did that leave Mrs Wodehouse? The first judge said she should get a lump sum payment and a share of her husband's pension. Mr Wodehouse appealed to the Court of Appeal saying that he had no money to pay the lump sum and that the court could not expect the trust fund to pay the amount of £90,000 to Mrs Wodehouse. His barrister argued that the trust fund was a discretionary fund, Mr Wodehouse had no entitlement to the trust money and the trust had not been a party to the original financial court proceedings.
The Court of Appeal, whilst expressing sympathy for Mrs Wodehouse’s financial predicament quashed the lump sum payment but it did maintain the pension sharing order that provides for Mrs Wodehouse to receive half of her former husband's police pension. The income from the pension is modest and will not go anywhere towards discharging the reported family debt.
How can Evolve Family Law Manchester Divorce Solicitors Help?
The Wodehouse case is a cautionary tale but it should not deter spouses from making financial claims involving trusts. Equally the case highlights the importance of estate planning. Had the money not been placed in trust by Henry Wodehouse’s late father it is debatable as to whether the money would still have been available for Mr and Mrs Wodehouse to litigate over given the creditor’s claims but, through use of estate planning, money has been preserved.
For legal assistance with trusts and financial claims on divorce or any other aspect of family law please contact us.
Appointments available in Manchester and Cheshire.
You may get a call or a letter through the post asking you to go to Mediation to discuss the future arrangements for your children or to resolve whether you should sell the family home and how you should share the pension. That first contact with a mediation service can be very intimidating, not deliberately, but just because you perhaps have not initiated the contact with the family mediator or because you do not know what will happen at the first family mediation session.
Keeping an Open Mind About Family Mediation
Where do you start? Well as an experienced Manchester family finance and divorce solicitor I would say start with an open mind about family mediation. Some people think, from the outset, that mediation won't work for them because their spouse or ex-partner will be too difficult and won't be prepared to discuss or negotiate. You may be right but, in my experience, mediation sessions can result in even the most entrenched spouse coming round to a compromise. The question then is whether the compromise works for both of you. If so, the agreement that you reach in mediation can be converted into a binding financial court order that is approved by the court in divorce proceedings.
Solicitors and Family Mediation
Some people assume that solicitors don't believe in the benefits of family mediation. They assume that divorce solicitors want all divorcing couples to go to court to get a judge to decide how their money and other assets should be split. We're not like that, and we fully believe in mediation and support the process from beginning to end.
We do however accept that ‘’one size doesn’t fit all’’ – we fully believe mediation is the right option for some couples, but accept that for others court or arbitration are the best routes to reaching a fair financial settlement. Why do I say that? Well, if I see someone who is worried that their spouse is hiding money or transferring property or investments to family members, all the indications are that family mediation isn’t appropriate and that financial court proceedings should be started as quickly as possible to preserve the family assets, and, if necessary, get injunction orders.
On the other hand, if I meet someone who has been invited to a mediation information and assessment meeting (MIAM) or to their first mediation session and they are feeling very daunted and a bit vulnerable because they don’t know as much about the family finances as their spouse then I see my job as to support the client through mediation support and not try and encourage them to start financial court proceedings. Ultimately, if mediation doesn’t work for the couple, court proceedings may have to be started but the non-court option should be explored first as , with a help from a Manchester divorce solicitor, the client can feel more empowered and less vulnerable during the mediation sessions.
Mediation Support
Often separating couples think that consulting a divorce solicitor and going to family mediation sessions are mutually exclusive. They are not as a divorce solicitor and family mediator have two completely different roles.
As a Manchester divorce solicitor my job is to give you:
legal information and advice about divorce proceedings ; and
advice about the extent of your financial claims , for example , if you have a pension sharing order claim or spousal maintenance claim; and
talk to you about the information and paperwork needed to help you reach informed financial decisions in mediation ; and
the types of orders that a court might make if you or your spouse were to ask the court to decide on how your assets should be split – this isn’t to encourage you to litigate and go to court but to ensure that you can make informed decisions about any financial agreement that is discussed in mediation , bearing in mind the costs and risks of financial court proceedings ; and
Support between the family mediation sessions to help clarify what was discussed, review financial disclosure within the mediation sessions and explore your options; and
If agreement is reached in the family mediation sessions and the mediator prepares a memorandum of understanding setting out the agreement in broad terms then converting the agreement and financial information into a draft financial court order and financial statement of information for a judge to then approve and make into a binding financial court order.
Family mediation isn’t the easy option for spouses or solicitors as it takes a lot of courage for many spouses to attend mediation sessions. It also takes specialist divorce solicitors who are prepared to support you through mediation and work with the family mediator to give the mediation sessions the best chance of succeeding. Success often comes through a spouse feeling legally empowered in family mediation sessions by knowing what their legal rights are and having a divorce solicitor working for them and providing legal support in the background.
Appointments are available in Manchester and Cheshire, contact us today.
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