Financial Claims - Landmark Supreme Court ruling Vince and Wyatt

Many married couples who separate fail to obtain a financial order following their divorce. However, this can prove to be a costly mistake. In a recent case the Supreme Court has allowed a wife to proceed with a financial order 30 years after the parties had separated.

Background

Dale Vince and Kathleen Wyatt were married in 1984. They had one child together born in 1981. Kathleen Wyatt also had a child from an earlier relationship which had been treated by them both as a child of the family. During the relationship the husband and wife chose “the new age or traveller creed or lifestyle” and had no assets of any significance. The parties separated in the mid 80’s and were divorced in 1992. The wife entered into a new relationship in 1995 and had two further children by her new partner. The husband remarried in 2006 and also had a 4 year old son with his new wife.

Following the divorce, the husband formed a wind power business which became extremely successful and grew into a company worth “many millions.” The wife being aware of her husband’s financial success applied in May 2011 for financial remedies from the husband. She also sought a costs allowance of £125,000 to finance her claim. The husband applied to strike out his wife’s financial remedy application. When the application was initially heard by a Deputy District Judge the strike out application was dismissed and the Judge granted the wife’s application for a costs allowance.

Not surprisingly the husband appealed to the Court of Appeal. In May 2013 that Court granted the husband’s appeal, struck out the wife’s claim for a financial remedy order and directed that the order requiring the husband to pay the sum of £125,000 to fund his wife’s legal costs should not have been made.

However, the wife then appealed against the decision of the Court of Appeal and the Supreme Court on the 11^th March 2015 in a landmark ruling, delivered a Judgment unanimously allowing the appeal. The Court directed also that the wife’s application should proceed in the Family Division of the High Court. The original costs allowance order was restored.

This case highlights the importance of ensuring that all financial matters are finalised at the time of a divorce and a Court order is obtained. Otherwise it could lead to future claims to share the wealth earned after the divorce. The case means that there is no financial time limit currently on pursuing financial claims and it is possible that one spouse could win the lottery or inherit significant assets and the other party could still potentially pursue a financial claim against the wealthier spouse.

It is therefore always recommended that even if a husband and wife have no assets at the time of the divorce, that the parties should still consider entering into a Clean Break Consent Order which would have avoided the situation arising in the Vince and Wyatt case.

We at Winston Solicitors are experienced in dealing with these issues. For advice and support please contact your family team on 0113 3205000 or by email @email.