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BRINGING RELIEF FROM THE STRESSES OF ANCILLARY RELIEF

The break up of any relationship is a difficult time for all involved. Not all splits are amicable and disputes can arise that increase the stress and pain of a divorce or separation. During the division of assets process, there may be a need for the court to settle disputes over money or property. The court may make financial orders to either or both parties. High profile cases in 2006 led to the House of Lords attempting to lay down some helpful guidelines to those divorcing and dealing with a split of their assets. The judgements make a distinction between matrimonial assets acquired through the joint effort of both spouses and non-matrimonial assets, which are brought into the marriage, acquired or inherited, or generated during the course of the marriage solely by one party. The non-matrimonial assets should only be for division if the matrimonial assets are not able to meet the needs of both parties. The House of Lords raised the issue of fairness as a yardstick to measure against. The Court raised three issues – those of (i) needs, (ii) compensation (where there is a surplus of assets and/or income over needs) to redress any future economic disparity and (iii), the concept of sharing assets equally unless there is a good reason to the contrary. However, recent cases may indicate the courts are moving away from a rigid application of these principles. They state there should neither be a formulaic approach nor too rigid an appliance of the guidance as if it were a statutory test. The result is that the law is still in a state of flux and it is difficult for anyone without sound legal knowledge and ability to wade through the differing case law and properly conclude upon the likely outcome. The upshot is that if your case involves any one or more of the following: - (i) A shareholding in a private company;(ii) A relevant inheritance;(iii) Significant assets (including savings, investments or other high worth assets)(iv) A high income;(v) Pension investments;(vi) A number of properties;(vii) A home and/or assets needed for one party and any children(viii) Where the case is to be driven by arguments of need – even if there are not significant assets as such. It is very much in your interests to employ a lawyer who has a good understanding of the case law as it stands and the ability to apply this to the particular facts of your case. There are numerous issues that can affect the outcome of a case and a failure to seek advice at an early stage can have a significant effect. You may not think it, but early advice about the division of assets from a competent lawyer could well lead to long term cost savings. Before living together or marrying some individuals may choose to enter into a Cohabitation Contract or a Pre Nuptial Contract to protect their assets in the event of future breakdown of the relationship. Recently, the courts seem to have given more formal recognition to such agreements. Careful consideration is necessary for such a step and legal advice at this stage is a must to ensure that matters are dealt with appropriately. Woodcocks’ specialist solicitors are on hand to advise you of the most prudent course of action throughout the course of a relationship, from beginning to end – and beyond.

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BRINGING RELIEF FROM THE STRESSES OF ANCILLARY RELIEF

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