VT v LT
[2023] EWFC 256 (B)
AW v RH (Financial Remedy Proceedings)
15 March 2024
[2024] EWFC 64 (B)
Family Court
A couple divorced and argued over splitting their house money. The judge considered their jobs, who takes care of the kids, and health problems when deciding how to split the money. The wife gets a bit more money initially because she looks after the children and needs help until she can get a job again. They'll split up their house money completely when the house is sold.
Key Facts
- •Financial dispute between a husband (applicant) and wife (respondent) following separation and divorce.
- •Central issue: division of proceeds from the sale of the former matrimonial home (FMH).
- •Parties disagree on equal sharing, each seeking approximately 60%.
- •Applicant: 59 years old, employed with a gross income of £129,000 per annum.
- •Respondent: 45 years old, currently unemployed, receiving benefits.
- •FMH was purchased by the applicant before the relationship.
- •Three children, with varying arrangements for time spent with each parent.
- •Applicant has recently been diagnosed with prostate cancer.
- •Respondent's previous employment as a lawyer ended by mutual consent.
- •FMH valued at approximately £501,000.
Legal Principles
Fair outcome for both parties, referencing the principles of sharing and needs.
Section 25 Matrimonial Causes Act
Consideration of available resources, including equity in the FMH, earning capacity, and mortgage capacity.
Section 25 Matrimonial Causes Act
Court considers reasonable housing needs, available resources, and implications for each party; it does not select specific properties.
Section 25 Matrimonial Causes Act
Court aims to balance global equity, housing needs, and borrowing capacity for a fair outcome.
Section 25 Matrimonial Causes Act
Welfare of the children is a primary consideration.
Section 25 Matrimonial Causes Act
Outcomes
Debts of £25,000 for the applicant and £48,000 for the respondent to be settled first.
To enable each party to make monthly savings by shifting these liabilities onto a mortgage.
53.5% (£221,000) of the remaining equity to the applicant and 46.5% (£192,000) to the respondent.
Reflects the respective responsibilities for the children, earning capacity, ages, and mortgage capacities.
Applicant to use a mortgage to purchase a property at around £415,000.
Based on his share of equity and mortgage capacity.
Respondent to use her share and a mortgage to buy a property at around £450,000.
Based on her share of equity and mortgage capacity.
Maintenance of £750 per month to the respondent until the sale of the property.
To address the respondent's financial hardship until she finds employment and the property is sold.
Clean break upon sale of the property.
To ensure a final resolution of the financial matters.