VT v LT
[2023] EWFC 256 (B)
BC v SC
12 December 2023
[2023] EWFC 307 (B)
Family Court
A couple divorced after a long marriage. The husband got sick, and the court had to divide their money and house fairly. The wife gets the house but has to pay off the mortgage. The husband gets to keep most of the money he got from his insurance, but he pays the wife a lot of money to help her buy a new place. They will not have to pay each other any more money after that.
Key Facts
- •Financial remedy application following a long marriage (2002-2021).
- •Applicant (H) diagnosed with stage 3 bowel cancer in 2021.
- •Significant assets, including the former matrimonial home (FMH), other properties, and business interests.
- •Disputes over the date of separation, asset ownership, and financial disclosure.
- •Intervener proceedings involving loans to H from family members.
- •Significant variations in the draft judgment based on post-hearing submissions.
Legal Principles
Section 25 of the Matrimonial Causes Act 1973 (MCA 1973) sets out factors the court must consider in financial remedy cases, prioritizing children's welfare.
MCA 1973, Section 25
In long marriages, a starting point of equal division of matrimonial assets is generally fair, unless there is good reason to depart.
White v White [2000] UKHL 54; Miller v Miller; McFarlane v McFarlane [2006] UKHL 24
Needs, compensation, and sharing are key principles justifying financial orders.
Case law principles discussed in sections 58.
Section 25A MCA 1973 promotes clean breaks in financial obligations.
MCA 1973, Section 25A
Outcomes
The value of matrimonial assets was determined to be £1,996,926.
Detailed assessment of various assets, including property, business interests, and critical illness policy proceeds. Adjustments made based on credibility assessments of evidence and post-hearing submissions.
FMH transferred to W, subject to her discharging H from the mortgage by 31 August 2024; otherwise, the FMH will be sold.
Balances W's housing needs with the need to preserve as much as possible of the critical illness policy proceeds for H's future needs and health care. Considers the welfare of Child B.
H to pay W a lump sum of £177,000.
This amount compensates for the shortfall between the value of W's share of the assets and her housing and capital needs, accounting for her mortgage capacity and liabilities. It also incorporates a capitalised sum in lieu of spousal maintenance to cover part of the mortgage payments until sale or redemption of the FMH.
Clean break order as to capital and income.
To ensure a final resolution of financial obligations and prevent future disputes.
H to pay child maintenance for Child B at £650 per month, commencing January 2024.
To support Child B’s needs during his remaining school years.
H will pay the full mortgage instalments for December 2023 and January 2024.
To provide a transitional period while W seeks a remortgage or sale.
30% pension impairment enhancement for H.
Represents a midpoint between the parties' arguments and reflects the expert's assessment.