When divorcing, it is vital to ensure that both parties agree a financial settlement, even if there are no assets.
In the recent case of Wyatt –v- Vince [2015] UKSC 14, the Supreme Court has allowed a former wife to pursue a historical financial remedy application for £1.9million, made 18 years after the parties’ decree absolute was granted.
The Wife’s claim has stemmed from there being no written record as to what was agreed with regards to finances. When the parties married, they had little to no assets between them, so no financial settlement was encompassed within a Consent Order as part of the divorce. However, after the parties divorced, the Husband made £57million from his green energy company. The Wife would now like a share of her former Husband’s post-divorce wealth. The Husband has described his ex-wife’s actions as like ‘cashing in an old lottery ticket’.
To prevent a historical claim after you have divorced, you must reach a financial settlement. 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.
Your solicitor will advise you on the best way to structure such an agreement and will transfer the agreement into a Consent Order which will then be sent to the Court for sealing. Please contact Lynn Gooch on 020 8502 3991 for further information.