HIGH profile divorces of the rich and famous nearly always focus on money and extravagant lifestyles? after all, does a former supermodel really need £53 million to fund a London home, a country mansion and five luxury supercars, and are these really reasonable needs?
For the man or woman on the street it’s a very different picture.
In June 2016 the Family Justice Council published Guidance on Financial Needs on Divorce, a tool for the judiciary to assist with the making assessments and orders.
Why was this needed?
As a result of the findings of the Law Commission in 2014, which expressed concern over regional differences in what judges were ordering, when dealing with cases where the assets did not exceed the parties’ needs; and partly to provide transparency. The document is guidance only and is not actual law.
The main law relating to finances on marriage breakdown has been around now for 43 years, with amendments, during which time society has changed.
Factors which will be taken into account when dealing with finances are set out clearly within the Act known as the Section 25 factors. Case law also provides guidance but many reported cases concentrate on high net worth individuals as opposed to “normal’ people whose assets do not exceed needs.
Clients are often surprised when we explain that our task as family lawyers in achieving an outcome is more of an art form than a precise science – part of the process is about getting a feel for what is fair and reasonable?to both parties.
With financial cases, there can be 3 different hearings.
* Most cases settle at the Financial Dispute Resolution stage;
* If not, they will proceed to a final hearing. The FDR is like a formal mediation session, as the District Judge gives an indication as to how a matter should be settled although the court cannot impose an Order at this stage.
* If parties cannot reach agreement, there will be a final hearing, dealt with by a different judge. I have had a number of cases where the view expressed by a district judge at FDR stage has been completely at odds to the Order made at a final hearing – a situation often difficult for clients to accept.
It is claimed that this guidance “will be of significant assistance to judges without in any way diminishing the fundamental importance of judicial discretion’.
Will the Guidance Help
It is hoped that the guidance will provide more certainty to everyone, including judges, lawyers and clients. It is important to note that at the same time this guidance was published a separate guide was issued for litigants in person. Only time will tell what impact this guidance will have but it is my hope that this clear and well written document will provide much needed clarity.
For further information please contact Louise Scott on 0116 251718, by email at or by visiting www.wilsonbrowne.co.uk
