Hearts, flowers & Pre-nups...

There has been increasing media noise lately about Pre-nuptial Agreements – usually those of the rich and famous, and it would appear that even Katie Price has finally got the message. What’s not to like after all? What’s mine is mine and Abba got it wrong if they thought I’d take a chance on you!

Well, the thing is – it’s not quite as simple as that.  To clarify, whilst  the Pre-nup culture has doggy-paddled  inexorably across the Atlantic to us, it  hasn't been  grasped  fondly to the bosom of its judicial master in the courts of our great land and it has remained far from a ‘sure thing’  that what you will get is what you signed up to before marital bliss took its toll . The reason for this is that the courts retain the absolute right to override a Pre-nup if its content would otherwise be ‘unreasonable’, principally in meeting the parties’ needs with reference to their resources at the time of divorce. So whilst a court will always consider a Pre-nup where one exists, it does so as one of a number of considerations, not as an overriding one. This is what makes it so important to get the drafting right – if it looks unreasonable, sounds unreasonable and tastes unreasonable, then odds are, the court will disregard it for being unreasonable.

The Law Commission has just put together a series of proposals for statutory reform in this area for the government to consider introducing specific legislation for the recognition and implementation of Pre-nups. This could change the scenery a little and one can’t help feeling that the vast private and inherited wealth of the current cabinet may be prone to favour the move. Even if this vision of the future comes to pass however, it isn't going to be a brave new world out there. Lady Hale of the Supreme Court may not be Judge Dredd but she won’t take lightly to an attack on a family’s needs or a court’s ability to meet those - “Marriage still counts for something in the law of this country and long may it continue to do so”.

So, where now?  Well, you may want to order your wedding invites from Moonpig.com, but for goodness sake, the internet is not the place to find a DIY Pre-nup in advance of the big day! If you want to make it count then it has got to be comprehensively detailed and accurate with clear provision for all eventualities. More so, it has to be reasonable, and only an experienced matrimonial lawyer can tell you what a court would deem that to be in your individual circumstances.  I won’t start on all the validity requirements that relate to the ‘how’ of entering into such an agreement for it to be accepted as such in the first place….you get my gist . If you want to give your heart but not your financial health, a well drafted Pre-nup will already serve you and save you!

Nicola Fraser

Senior Associate Matrimonial Solicitor

email: nicola.fraser@gorvins.com

telephone@ 0161 930 5151

War! What is it good for?

The benefits of collaborative divorce

Whilst the breakdown of a relationship can be hugely upsetting and often frightening, the last thing that will improve the situation, especially for any children involved, is a legal war.

Any professional matrimonial lawyer should know this and have the skills to put your interests and those of your family first.  Obviously it is vital that arrangements for children, financial facts, needs and legal principles are completely understood and addressed, but it is equally important to do it in the best way for the family.

Collaborative law is a professional approach to divorce that empowers you to achieve an outcome that is agreed and arrived at jointly and openly.

It has been adopted by many experienced divorce lawyers who have seen first-hand the negative impact and cost of divorces that are approached by some clients (and unfortunately some solicitors) as a war of attrition and point scoring.  Trained collaborative lawyers will instead provide a supportive divorce process through shared communication.  Each party’s Collaborative Solicitor will act as a legally aware mediator with the aim of reaching a workable and legally sound conclusion.  The process includes:-

·         Pre agreed agendas.

·       Joint meetings with both parties and their lawyers, to discuss financials and address practical facts as well as personal concerns and issues about the children.

·       Meetings are based on an initial written agreement that sets out the plan and reasons for working towards an agreed outcome.  This is drawn up by the parties themselves and both they and their collaborative lawyers “sign up” to this at the start.

·       Matters are openly discussed with the professional support and advice of both lawyers to agree arrangements for any children of the family plus a full financial and property settlement.

·       It can take between one to five meetings to achieve overall agreement, which is then drawn up into an agreed Court application. This is submitted to the Court in order to request that the Court approve the agreed settlement as a final and legally binding Order.  During this process neither party has to attend court.

 The outcomes are agreed, rather than imposed.  There are no winners or losers in the collaborative process, plus there is more scope to arrive at a bespoke arrangement that works for each individual family than contested Court proceedings might achieve.  Most important of all, you are the ones to decide the outcome and your own family’s future rather than risking your fate (and theirs) to the increasingly uncertain outcome that any given Judge on any particular day might impose.

Nicola Fraser

Collaborative Lawyer
Matrimonial Solicitor
Senior Associate Gorvins

NEW FAMILY MEMBER

We’ve welcomed a new associate solicitor to our team, who will also be contributing to our blog.

Kathryn Hulmes, 32, from Bury, brings experience in dealing with international child abduction cases involving Hague Convention proceedings and advising clients when the Hague Convention does not apply. 

Kathryn is also an expert in divorce, financial settlements, cohabitation disputes, children matters and domestic violence.

Kathryn has returned to the north following seven years at a firm in West Sussex.

She is an excellent addition to the team.  Her experience in international child abduction cases is new to the firm and something that we plan to incorporate into our service offer.

With the UK becoming home for an increasing number of foreign nationals and a rise in international marriages and relationships this is an area of work that we foresee growing in the future and Kathryn’s track record  provides us with a solid foundation from which to build a client base in this area.

Stay tuned for future blogs from Kathryn.

Sally Leaman

Understanding the impact of Universal Credits

Universal Credits are set to replace a variety of existing benefits next month, with pilots running in a handful of regions. The new regime is the biggest overhaul of the benefits system in decades and is intended to streamline the benefits system.

It is important that those divorcing and claiming the main means-tested state benefits including tax credits understand how the new Universal Credit regime is likely to impact on them when negotiating a financial settlement within divorce proceedings, in particular if they are seeking to claim spousal maintenance.

Spousal maintenance is awarded if one spouse cannot adequately support themselves without financial support from the other spouse after the divorce.  Under the current benefits system, those receiving Tax Credits for example, would not suffer a reduction in their Tax Credit award simply because their ex pays them spousal maintenance; this is however all set to change under the new Universal Credit system.

If a wife, for example, is reliant on her Tax credits it is important that she is aware that under the new regime, her Universal Credit award will be subject to a pound for pound reduction by the amount of spousal maintenance she receives from her ex. Child maintenance payments received by the wife on the other hand will not reduce her Universal Credit award.

The Universal Credit Regulations suggest that if a spouse receives significant spousal periodical payments, then this may mean that he or she is unable to receive Universal Credit or that the Universal Credit award may be claimed only for a limited period. This must be considered when calculating an appropriate amount of spousal maintenance where a Universal Credit award will also be relied on. If claiming spousal maintenance and Universal Credits, there may be the possibility of receiving greater child maintenance payments (which will not reduce the Universal credit award) with lesser spousal periodical payments with a view to avoiding a reduced Universal Credit award.

At this stage there will be an element of crystal ball gazing to predict the payments that will be received after the new regime has been implemented or when the changes will take effect regionally, however it is important that recipients of a means tested benefit such as Tax Credits take account that a spousal maintenance award made in divorce proceedings will impact on their ability to claim the new Universal Credit.

Kerry Russell

Associate Solicitor at Gorvins.

Gorvins Fashion event at Angela Beers

We co-hosted a glamorous night to remember at the North West’s leading ladies fashion store Angela Beer in Bramhall yesterday.  Here are some pictures from the night.  Thanks to all the generous attendees who helped raise over £650 for Claire House Children’s Hospice.

 

 

 

Prenups...not just for celebrities

It has been reported that Catherine Zeta Jones and Michael Douglas are to split after 13 years of marriage. Although the couple are yet to confirm plans to divorce, it is reported that they have signed a Prenuptial Agreement ("a Prenup") which should assist them both on making the financial settlement more straightforward should they go on to divorce. In happier news it has been reported that Zahn Malik of boy band One Direction is to marry Little Mix band member Perrie Edwards. With the 1D boys having an estimated combined value of £26.33 million and with a new movie just out, the boys are expected to earn an estimated $1 billion (£640 million) by the end of this year and Malik would therefore be well advised to consider a prenup should the worse happen.   A prenup is not just for the rich and famous. It is a formal agreement entered into by a couple before they marry or enter into a Civil Partnership which sets out what is to happen to their assets in the event of a divorce or dissolution. Prenups may not be considered romantic however a properly drafted agreement may offer greater certainty to a couple should they go on to divorce. Prenups, although enforceable in most US States and elsewhere in the world, are not legally binding in England and Wales. In 2010 however the Supreme Court in the case of Radmacher -v- Granatino held that prenups should be persuasive and ought to have a significant bearing on the financial outcome of a divorce as long as they have been properly drawn up and would not be unjust to either spouse. Divorce courts have a very wide discretion when it comes to dividing assets and courts tend to consider the value of assets in existence at the time of the divorce and divide those assets between a couple in light of their respective needs and those of any children and in line with other guidelines set out by the divorce laws and case law. This can often lead to an uncertain outcome with the wealthier spouse potentially having to give away a substantial amount of his or her wealth to the other spouse. A prenup, if properly drafted can therefore offer some financial safeguards in the event of a divorce and may help in avoiding lengthy and costly legal disputes.   Kerry Russell Associate Solicitor - Gorvins

Divorce makes you happier apparently….

Researchers at Kingston University have recently published the results of a study in the journal Economica which shows that women are significantly happier for up to 5 years after their divorce.

Men apparently feel slightly happier after their divorce, but the increase in happiness is not as marked as for women.

The study involved 10,000 participants over 20 years who were asked to rate their happiness before and after major events in their lives. Divorce it would seem makes you happier.  The study revealed that unemployment is the one major life event which has a long term negative impact on the well being of both men and women, surprisingly more so than being widowed.

Commenting on why divorce may make women happier than men, Professor Yannis Georgellis of Kingston Business School said “One explanation could be that women who enter into an unhappy marriage feel much more liberated after divorce than their male counterparts.”

The ONS latest statistics on divorce reveals that the most common ground for women to seek a divorce is unreasonable behaviour; 54%  of divorces granted to women are on this ground as against 36% of divorces granted to men on the same ground. Perhaps these statistics explain a little why women’s perception of divorce is different to men’s.

Either way the findings of this study show that not only is there life after divorce, but it should be a happier life too.  

 

Sally Leaman

Head of Family Law Gorvins