In March 2015 we posted a blog entitled “Finalising your financial matters in a divorce” which highlighted the importance of agreeing a financial settlement, even where both parties have no assets.
In the case of Wyatt –v- Vince both parties had little to no assets at the time of divorce and no record was made as to the settlement of finances. After their divorce, the Husband became hugely successful and made £57million from his green energy company. As there was no written record as to what was agreed with regard to finances, the Supreme Court allowed the Wife to make an application to pursue a historical financial remedy application for £1.9 million, 18 years after the decree absolute was granted.
The case was directed to proceed in the Family Division of the High Court whereby Mr Justice Cobb confirmed that the final order settling proceedings should be made public. It was agreed that:-
We cannot stress enough how important it is to reach a financial settlement during divorce proceedings. The absence of a financial settlement will leave open the possibility for one spouse to make a future claim against the other. If you are able to reach an amicable agreement between yourselves, it is recommended that you take legal advice to ensure that the agreement is fair.
If you would like to discuss this further, please contact Lynn Gooch on 020 8502 3991 for more information.