VT v LT
[2023] EWFC 256 (B)
O v O
29 September 2023
[2023] EWFC 161 (B)
Family Court
A couple with lots of money are divorcing. The husband gambled away a lot of their money, and they disagree about how much is left. The judge decided how to split what's left fairly, considering who was responsible for the losses, and made sure the children's school fees are paid. The wife will get slightly more money because of the husband's bad decisions, and they won't have to pay each other any more money after the house is sold.
Key Facts
- •High-value divorce case (net assets c.£2.5m).
- •Parties married in 2006, separated in 2022.
- •Two children aged 17 and 12.
- •Significant dispute over valuation of 13 rental properties.
- •Allegations of financial mismanagement by husband (spread betting losses of £406,821, including £150,000 from company funds).
- •Dispute over husband's tax liability (£500,000).
- •Husband represented himself at trial.
- •Excessive legal costs incurred (£243,258).
Legal Principles
Section 25 Matrimonial Causes Act 1973 factors considered.
Matrimonial Causes Act 1973
Conduct must be pleaded with particularised specificity; 'add back' jurisdiction exercised sparingly.
Tsvetkov v Khayrova [2023] EWFC 130
Reattribution of dissipated funds requires clear evidence of dissipation with a wanton element; reattribution must be justified in the context of the case.
Vaughan v Vaughan [2007] EWCA Civ 1085 & Evans v Evans [2013] EWHC 506 (Fam)
Notional reattribution is a form of penalisation and is not actual money; caution needed in 'needs' cases.
BJ v MJ [2011] EWHC 2708 (Fam) & US v SR [2014] EWFC 24 (Fam)
Consider the extent, timing, and nature of dissipation against the backdrop of general overspending; fairness demands sparing use of add-back jurisdiction.
GS v L [2011] EWHC 1759 (Fam)
Outcomes
Sale of former matrimonial home; net proceeds to wife.
Addresses housing needs and aims for clean break.
Sale of two flats; net proceeds divided equally.
Shares risk of uncertain property value.
Sale of one flat; net proceeds to wife.
Reflects overall asset distribution.
Sale of one flat; proceeds to education trust for children.
Ensures school fees are paid; both parents involved as trustees.
Wife retains one property; husband retains other properties.
Addresses housing needs and reflects asset distribution.
Husband indemnifies wife for financial penalties related to company funds and HMRC debt.
Husband's misconduct is acknowledged.
No spousal maintenance order; clean break after sale of family home.
Wife's income needs met by capital; promotes clean break given acrimony.
Husband to pay interim maintenance at current rate until sale of family home.
Addresses interim financial needs.