CG v DL
[2023] EWFC 82
ES v SS
13 October 2023
[2023] EWFC 177
Family Court
A wealthy couple divorced. The husband had lots of money before the marriage, and made more after. The wife got some of his pre-marriage money, but also a share of the money he earned after they split, to be fair. They also worked out what to do with a family trust fund.
Key Facts
- •Applicant wife ('W') claims financial remedies following marriage breakdown.
- •Parties married in 2005; three children aged 12-16 in private education.
- •Both parties are UK tax residents but domiciled outside the UK.
- •H had significant pre-marital assets (£12.5m approximately), including property and equity.
- •During the marriage, H transferred approximately £6m to W for tax reasons.
- •H's post-marital business ventures (XYZ and New XYZ) generated substantial returns, particularly from E Co sale.
- •Dispute over date of separation (early 2020 determined by the court).
- •Non-disclosure by H regarding E Co sale led to setting aside the initial FDR agreement.
- •Disputes over valuation of remaining business interests (NFIs) and whether a Wells sharing order is appropriate.
Legal Principles
Treatment of pre-marital assets; needs-based approach unless required.
Various authorities, including Hart v Hart [2017] EWCA Civ 1306
Wells sharing orders are approached cautiously and should be a last resort.
Versteegh and WM v HM (Financial remedies: sharing principle: special contribution) [2018] 1 FLR 313
Section 25 of the Matrimonial Causes Act 1973 (MCA 1973): Court's duty to achieve a fair outcome.
MCA 1973, Section 25
Outcomes
35% of H's pre-marital assets (£4.375m + £497k property) deemed non-matrimonial.
Balances provenance of funds with their use during marriage; W's tax status enhanced H's assets; some funds spent on family expenses.
Date of separation determined as early 2020.
Marriage had been deteriorating; parties sought to protect children; lockdown impacted physical separation.
W to receive 40% of F Co net receipts and 20% of H Co net receipts.
Assets partly product of matrimonial endeavour; H's post-separation work considered; differential reflects investment dates and future work.
W to receive 50% of E Co proceeds and 25% of G Co proceeds.
E Co's development predates separation; G Co's post-separation contributions considered.
M Trust to be restructured with equal control for H and W.
Avoids future discord; equal control prevents one party from benefiting disproportionately; tax implications to be addressed.
H to pay a lump sum of £15,201,470 to W.
Achieves approximately 60:40 asset division; reflects pre-marital and post-separation contributions; considers all assets and liabilities.
Indemnity costs for H summarily assessed at £176,400.
Deduction for abandoned SJE costs; 10% reduction for summary assessment; considers H's non-disclosure and extensive financial enquiry.