A recent high profile case has brought to light the importance of having a financial clean break order as part of a divorce to avoid unwanted claims from an ex-spouse later down the line.
Dale Vince,
a self-made millionaire, thanks to his green energy company Ecotricity, was
recently taken to court by his ex-wife of 20 years who was seeking a capital
sum and lifelong maintenance, despite the fact Mr Vince made his fortune many
years after the couple divorced.
The couple
married in 1981, when both were receiving state benefits. They had a son together and the wife had a
daughter from a previous relationship.
They then separated in 1984 and their divorce was finalised in
1992. Both moved on to other partners
who they had children with, Mr Vince having married his new partner in 2006.
Mr Vince’s
company was launched in 1995 and is now estimated by the Sunday Times Rich List
to be worth £90m.
The wife brought
a claim for financial remedy against Mr Vince in May 2011, 18 years after they
divorced. Despite her delay in bringing
the claim and the lack of any marital assets at the time of the separation the
High Court ordered in December 2012 that Ms Wyatt’s claim could proceed to trial. It also ordered that Mr Vince fund her legal
costs of £125,000 to bring the claim.
But in May 2013 the Court of Appeal reversed that decision, struck out
Ms Wyatt’s claim and reversed the order for payment of Ms Wyatt’s legal costs.
Two things really
strike me about this case:
- The
court should not allow people to be harassed by claims for financial
relief that were issued many years after the divorce and had no real
prospect of success.
- There
needs to be a clear and accurate financial order at the time of divorce
proceedings. A court order to be
dealt with during the divorce process, which records the way in which any
marital assets are to be divided between the parties and, more
importantly, the dealing of future financial claims would have avoided the
costs of the court proceedings.
Thankfully,
common sense prevailed in the end and the wife was criticised by the judge for
bringing the case to court, but it shows that this kind of action can happen,
so people do need to protect themselves from future claims during their divorce.
A millionaire lifestyle may be in your future….make sure you protect it!
Kerry
Russell