In a recent High Court ruling, Mr. Justice Francis dismissed a claim for a £2.5 million divorce settlement that included a £26,000 annual meal allowance, telling a spouse to learn how to cook. The judge dismissed the husband’s allegation that he needed the meal allowance because he was unable to prepare even a basic meal, such as an omelette, saying:
“Being married to a rich person for three years does not suddenly catapult you into the right to live like that after the relationship has ended”
The husband said he was requested to sign a prenuptial agreement on the day of the wedding, which makes the case interesting. In the case of a divorce, the agreement said that he may get a settlement of £500,000.
In England, judges begin with the premise that a prenuptial agreement shouldn’t be enforceable, which is different from the situation in Scotland. The English courts then frequently look for methods to get beyond that fundamental principle. Following the trial, the court gave the husband £400,000 and ordered him to reimburse his wife for £75,000 in legal fees.
Prenuptial Agreement
Pre-nuptial agreements, or marriage contracts as they were formerly known, have been used in Scotland for a very long time. They frequently served to shield affluent daughters from the effects of laws that gave a husband the right to inherit his wife’s assets upon marriage.
These agreements are frequently used nowadays, and their main goal is to ringfence and shield the assets of both couples from being used as evidence in a divorce lawsuit. It is a good idea to give parties enough time before a wedding to receive advice and carefully analyse the agreement because the agreements must be fair and reasonable at the time they are signed.
The wife in this English case was the daughter of a wealthy businessman, and her family had given her the majority of her possessions as presents. Although presents from parents or other third parties are not considered matrimonial property in Scotland, there may be issues if the gift’s characteristics change while the couple is married.
For instance, a present of cash that can be used to purchase another item. There may be disagreements on whether it is just to divide the non-matrimonial property in the same manner as other assets that might not have originated from a non-matrimonial source after the change turns it become a portion of the pot. In general, the law stipulates that the net worth of the couple’s matrimonial assets is distributed equitably, with equal property serving as the foundation for this process.
Establishing a prenuptial agreement is a smart move. In the event of a divorce, it prevents convoluted and expensive legal issues. You must give yourself plenty of time before the wedding date if you are thinking of signing such an agreement. It is a good idea to be open and honest with each other about the assets and their worth, and both parties should ideally have their legal counsel. Additionally, you should check your agreement and remember that you might agree to modify its terms in the future if circumstances change. These agreements can also be made after marriage, so it’s not too late if you’re already married. Afterwards, they are referred to as post-nuptial agreements.
If the husband’s claims that he was given the prenuptial agreement on the day of the wedding were accurate, there might have been a challenge to it in a circumstance similar to the one in this English case. It could be feasible to attempt to contest the arrangement if he lacked legal counsel and was in a far weaker negotiating position than his wealthy wife and her family. This would not alter the fundamental legal stance that, under Scots law, none of the riches the wife received from her father would be considered marriage property if the presents had remained the same. By completing a prenuptial agreement correctly and on time, the matter would be resolved beyond a reasonable doubt.
The English case is being challenged because the judge’s rejection of the husband’s claim was biased against women. Wives of affluent men have undoubtedly gotten substantial ongoing support payments in several cases in the English courts, and the divorce settlement has kept them in a particular “lifestyle.”
These high-value, continuous support scenarios are almost unheard of in Scotland anymore. The purpose of the legislation in this area is to determine the marital property, split it, and ensure that both parties have a clean financial break. In certain situations, a continuous periodic allowance may be mandated if it can be supported by substantial financial reliance or hardship brought on by the divorce. This usually lasts for a set amount of time, not long, and isn’t dependent on the paying person’s wealth or future earnings.
A periodical payment would probably be denied in Scotland as well because the applicant was a 42-year-old city trader, the marriage had barely lasted three years, and there were no children.
This case also illustrates the danger of bringing legal action over these issues. The judge does have a lot of discretion when deciding how much money to award here in Scotland, as well as south of the border. According to reports, the wife’s solicitors in the English case offered £800,000 to save her from the expense and stress of a trial. The husband has walked away with half of that amount, which is further diminished by having to cover his wife’s expenses and, of course, his legal fees.
Prenup, Divorce, Family Law Solicitor – Legal advice
At Complete Clarity, we have a dedicated and experienced Family Law team. For more information on prenuptial agreements, please contact a member of the Family team on 0141 433 2626.
