'Super-rich' divorce cases to be tested in the House of Lords
Monday 30 January 2006
Latest in Crime
Related articles
On Facebook
From the blogs
More than half of Afghanistan’s families live in extreme poverty
Leila is watching her baby intently, as his mouth moves trying to swallow the small blob of yellow p...
Time for a new approach to alcohol
Ambulances were called and three drunk teenagers were brought to my care. One was so drunk we had to...
Bahrain: One year on
I am used to endless lies and criticism from the BNP and its favourite blogster, as well as Islamist...
Paul Volcker stands tall against the banking lobby
Why is Europe, which likes to present itself as an opponent of speculative "Anglo-Saxon" finance, li...
The right of a wife to a fair share of her husband's wealth will be decided by the House of Lords in two multi-million pound test cases that begin today.
Two wealthy husbands have gone back to court to ask a panel of law lords to reduce the size of the divorce settlement that they were ordered to pay their wives.
The judges will have to decide on the fair division of the family assets and the value of a wife's contribution to the marriage.
Ken MacFarlane, 44, a partner with the accountants Deloitte, is appealing against a £250,000-a-year maintenance award to his wife Julia, also 44, and the decision to divide their £3m family assets equally between them.
Alan Miller, who is a City fund manager, is arguing that the £5m awarded to his wife Melissa by a High Court judge is unfair, and that his offer of £1.3m was generous on the basis that she was only entitled to be returned to her former position as a wage earner with a relatively high earning potential.
Mrs Miller, a 35-year-old American, who was living in a rented flat and earning £85,000 a year before she married, won a payoff of £5m for fewer than three years of marriage. Her husband's wealth was estimated at about £17.5m; he also had shares in his fund management firm, New Star, valued at between £12.35m and £18.11m.
Mr Miller's QC told the Court of Appeal that it would have cost him far less, at most £2m, if he had knocked Mrs Miller down with his car and caused her severe injuries, instead of leaving her for another woman. At the heart of the McFarlane case is what value the court should set for Mrs MacFarlane's contribution to the marriage by giving up her career to care for their three children.
Lawyers believe the McFarlane settlement will have a huge impact on the length of time during which wives of wealthy husbands can expect to continue to receive maintenance where there is not enough capital to achieve an immediate clean break on divorce. The case was overshadowed when it first went to court because it was heard together with the ground-breaking divorce of the Middlesbrough footballer Ray Parlour, who was ordered to pay his wife £406,500 a year for four years, at which point it will be reviewed.
Michael Gouriet, a senior solicitor at the matrimonial law experts Withers said: "This is the first time that the House of Lords has been asked to look specifically at the issue of the division of the husband's future income." The matrimonial law experts Addleshaw Goddard predict that if Mrs MacFarlane succeeds, wealthy husbands can expect, after a marriage of 20 years or more, to be paying for the upkeep of their former wives for the rest of their careers.
A backlog of divorce cases has built up ahead of the verdict from the House of Lords hearings, with separating couples eager to see which party the law lords favour before they attempt to agree their own settlements.
The law firm said: "If Mr MacFarlane is successful in restricting the number of years for which Mrs McFarlane will receive maintenance, professional women should be very wary of relinquishing their own careers to bring up children. If they still choose to do so, such wives would be well advised to consider making a mid-nuptial agreement."
Lawyers also fear that the Miller case, in taking into account the husband's behaviour in ending the marriage, could herald a return to old-style arguments over blame for a marital breakdown.
Addleshaw Goddard warns: "If Mrs Miller is successful, the basis on which a divorce is granted will have repercussions in financial proceedings and as a result, we are more likely to see an increase in defended divorces. In addition, the number of premarital agreements made each year will increase dramatically."
Only five years ago, wives who divorced super-rich husbands used to be restricted to their reasonable needs after the marriage breakdown which usually meant a house and maintenance, leaving the remaining assets with the husband.
- 1 Ninety gaffes in ninety years
- 2 Cameron's 'drunk tanks' are dangerous, say police
- 3 Can you master a language in a weekend?
- 4 Rothschild loses libel case, and reveals secret world of money and politics
- 5 No secularism please, we're British
- 6 Apple admits it has a human rights problem
- 7 Russian youth group outlives its usefulness
- 1 Ninety gaffes in ninety years
- 2 Spotify: 1 million plays, £108 return
- 3 Apple admits it has a human rights problem
- 4 Rangers future could be bright says administrator
- 5 Rothschild loses libel case, and reveals secret world of money and politics
- 6 MP faces charges over Nazi stag night
- 7 Six Grammys, five years off: Adele puts love before career
- 8 No secularism please, we're British
- 9 Mark Steel: If religion is 'marginal', I'm the Pope
- 10 Lightning kills an entire football team
Free trial of new Independent iPad app
Get your daily dose of the best of British journalism, sponsored by American Airlines
Win a three-week coastal jaunt
Spend three weeks exploring every nook and cranny of gorgeous Atlantic Canada.
Amazing restaurant offers
Three glasses of free champagne and a special menu at 46 top London restaurants.
Latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Career Services
Day In a Page
How an abortion divided America
Did they all live happily ever after? That's up to you...




Comments