VT v LT Case Highlights Balancing Equitable Distribution with Individual Circumstances in Financial Remedy Matters

Citation: [2023] EWFC 256 (B)
Judgment on


The 2023 case of VT v LT offers a comprehensive examination of financial remedies upon the dissolution of a marriage. This article aims to unpack the judgment from the Bristol Financial Remedies Court to elucidate the legal principles at play and the rationale for the outcomes determined by DISTRICT JUDGE HATVANY. It is essential for UK legal professionals to understand the key aspects and the application of Section 25 of the Matrimonial Causes Act 1973 which underpin the decision.

Key Facts

The marriage of VT (applicant wife) and LT (respondent husband) spanned 18 years before its dissolution in March 2020. The couple share three children, with the eldest living independently and two teenage boys shared between their care. The husband has stayed in the former matrimonial home, while the wife currently resides in a rented property. The case brings to the forefront issues concerning the division of marital assets, debts, and housing needs, all within the context of fluctuating mortgage payments and a business that suffered due to the COVID-19 pandemic.

The husband operates an IT support business from the matrimonial home, and the income from said business is pivotal in assessing his financial capacity. Both parties present distinct proposals for the division of assets and debts, with the wife seeking secure housing through a shared ownership scheme while the husband proposes to retain the former matrimonial home due to business reasons.

The court’s judgment hinges on Section 25 of the Matrimonial Causes Act 1973. The section outlines the criteria for consideration when deciding on financial orders, including the welfare of any children of the family, the income and earning capacity of each party, the standard of living enjoyed during the marriage, the contributions made by each party, the conduct of the parties, and the value of any benefit lost by reason of the divorce.

With an 18-year-long relationship, the case’s starting point is equal distribution. However, DISTRICT JUDGE HATVANY emphasises the need for a “modest departure from equality” to reach a fair conclusion, accommodating the individual circumstances of the parties, particularly the husband’s higher earning and mortgage-raising capacities, and their respective proposals for future housing.


The judgment requires the husband to pay the wife an initial sum of £20,000 immediately and a further £35,000 within 24 months. Should he fail to make this latter payment, the matrimonial home is to be sold, with £55,000 of the proceeds going to the wife. The husband also retains responsibility for the matrimonial debts in his name. Echoing the principles of fairness and equality, the court orders a 50% pension share from the husband to the wife, reinforcing the notion of equitable distribution in the absence of actuarial evidence.


In VT v LT, the court underscores the need to balance equitable distribution of assets with the practical considerations of each party’s future needs and capacities. The decision of DISTRICT JUDGE HATVANY reaffirms that fairness is not necessarily synonymous with equality, especially when unique personal circumstances demand a tailored approach. This case becomes a touchstone for UK legal professionals in understanding the application of Section 25 factors when resolving disputes over financial remedies amidst divorces. The ruling further ensures that a clean break is feasible, allowing both parties to move forward independently while striving to meet their respective needs.

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