divorce uk marriage law

Stop me if you’ve heard this one: A lawyer gets married to a lawyer. Once they divorce, one of them gets half the assets plus £400,000 extra for no longer being a lawyer.

More seriously: There was a recent example in case law judged by Mr Justice Philip sMoor, in which a couple met at a firm. She was an in-house lawyer by the time they were engaged, and was considered to have ‘a good chance’ of eventually becoming a partner at the law firm. The husband did not wish for her to remain at the firm when they married, and she accepted this outcome.

They first met in September 1999, when he was an associate solicitor and she was a trainee. She became an associate in March 2001, and their relationship initiated by 2002, and soon after the husband was made an equity partner. She was promoted to managing associate in 2006, and moved away from the office to work at a bank as an in-house lawyer in 2007. They married in 2008.

Since then they had been married for a decade with two children.

Justice Moor stated that while it was “unusual to find significant relationship generated disadvantage that may lead to a claim for compensation,” but this was such a case in which “the wife gave up her legal career, with the support of the husband.”

He added “He was somewhat ungallant as to the wife’s abilities, telling me that he did not think she was an exceptional candidate despite her two exceptional grades in her 2006 and 2007 appraisals. He has clearly convinced himself that her frailties mean she would never have been made a partner at the firm.”

The wife agreed that “compromises had to be made” when they got married, and she agreed to “put her career to one side for the children”. She considered herself “incredibly driven” and “it was very difficult for her to leave the firm”, not wanting to give up “her financial security or the ‘badge of honour’” she noted in the evidence that the husband “did not make her give up her career” – it was all by her own volition.

I am satisfied that, by the time the decision was taken to leave, she had formulated her plan which involved both marriage and, hopefully, children. She viewed herself as the parent who would take primary responsibility for the children. The husband’s career took precedence,” Justice Moore said in the judgement.

Mr. Justice Moor noted that this should not be a case that opens the way for other relationship-generated disadvantage claims.

He said: “I have already made the point that, in many of these cases, the assets will be such that any loss is already covered by the applicant’s sharing claim. In other cases, the assets/income will be insufficient to justify such a claim in the first place. It follows that litigants should think long and hard before launching a claim for relationship-generated disadvantage and they should not take this judgment as any sort of “green light” to do so unless the circumstances are truly exceptional.”

 

The Concept of Redress in UK Law

The obvious answer to the question in the title is: No, of course not.

When during a marriage one partner must take a step back to put family ahead of ambition and earning power, this is usually reflected in the division of assets and maintenance. While one may find material success in their career, the less tangible support offered by the other partner in emotional and mental needs should not be discounted either. Would the breadwinner have gone so far if they did not have their family to allow them to set down their burdens and/or prevent burnout? Taking care of children and one’s home used to be a full-time activity and being a mother remains a career in itself worthy of respect.

The concept of redress is to give compensation or payment for a wrong that has been done. Not usually is marriage considered a ‘wrong’ done to somebody. Relationship-generated disadvantage is already often compensated for, and any additional claims are usually awarded only for sake of child maintenance or when the relationship has things involved that are more abusive or criminal in nature.

Where compensation does look similar comes from the nature of damages awarded in personal injuries – the claims cover not just hospital bills and suffering, but also wages lost and potential future earning potential in the case of permanent personal injuries.

Thus, in a way, the answer is also somewhat… yes? If you get married and get a divorce, it is inevitable of course that you have to sacrifice something. You’re supposed to both be putting something into the marriage as equal partners and not everything can be so easily given a monetary value.

In this particular instance, the woman gave up a particularly lucrative career, earning £100,000 a year before she left. Many eligible men now also fear marriage as something that will hack away half their net worth when they get divorced. However, being taken to the cleaners by a gold-digger is nothing new either. It is symptomatic of a relationship of un-equals.

For every high-flying international billionaire like say, Elon Musk, there’s also a similar sanity check Bill and Melinda Gates. Treating marriage as a potentially adversarial partnership will make it a self-fulfilling prophecy.

 

Relationship Disadvantage in Median Households

The case, as Justice Moor stated, should not open the floodgates to other similar claims. Most median households would not apply. This is not so much a ‘rich people exemption’ but that the potential earning power of both partners in the marriage would be close enough that it would not matter.

Only matrimonial assets can be divided as part of financial remedy proceedings. After a divorce with children, one of the spouse will be made to continue maintenance payments for their children.

It’s not only financial adversity that affects couples in divorce, but when involving children it’s not just the welfare of children that should be considered but also parental separation and adult psychological distress. The one with the children needs additional upkeep in order to raise their children, but additionally paying maintenance continues to give the other parent rights to equitably access their children and play a substantial role in their lives.

 

No Weight Given to Pre-Nuptial Agreement

Now, when one thinks of preserving one’s assets in marriage, one usually thinks of pre-nuptial agreements. Some might think that the division of assets and spousal maintenance after a divorce is biased towards the woman. They would be wrong.

It is biased against big money. Relationship-generated disadvantage can be most clearly seen with prenuptial agreements that treat marriage and time spent together as little more than a contract-based relationship.

Let’s take the example of Morgan McConnell, the great-granddaughter of the founder of Avon Products, and Anil Ipekci, whom she met when he worked as a concierge at Le Parker Meridien in New York. They first met in 2003 and began co-habiting in January of 2005. They decided to marry.

A pre-nuptial agreement was drafted by McConnel’s private lawyer and another lawyer was found in order to give Ipekci independent legal advice. It just so happened that this lawyer was the solicitor that acted for McConnel in her divorce for her first husband. He first met the lawyer on the 3rd of November 2005, and by then the marriage had already been fixed to commence on 26th of the same month of 2005.

The draft had surprising qualities, which as Mr Justice Mostyn noted:

“The husband must have been very surprised by what it contained. First and foremost, it provided that the agreement was deemed to have been made under the laws of the State of New York and that its validity and effect and construction should be determined in accordance with those laws regardless of where either party resided or was domiciled at the time of death or divorce or separation. Second, it provided that the parties wished any proceedings relating to the marriage to be determined in accordance with the laws of the State of New York and that they submitted to the exclusive jurisdiction of the courts of that State.”

Among the provisions given to Ipekci (in event of marriage lasting at least three years and with two children) was that any increase in the value of three properties in the name of the wife that were sited within Barnes, Hanwell, and New York, would be divided equally between the parties on divorce. The husband would not be entitled to claim any alimony or any other money from the wife. In the agreement the three properties were attributed with the value of $1.6 million or at present £1.24 million.

The husband was counseled that the agreement was slanted heavily in favour of the wife. Nonetheless, he signed it on 11 November 2005 and the parties were properly married 15 days later.

Now what actually happened was that the proceeds of the three properties were folded into their existing family home in Barnes, which had a net value of £1.074 million. There being no increase in value for both parties to share, under the agreement the husband would receive nothing at all.

Mr Justice Mostyn held that it would be wholly unfair to hold the husband to the agreement he signed for several reasons:

  • The contract specifically stated that the agreement would be governed by New York law. Astoundingly, the agreement was not accompanied by a certificate that it conformed with the local law it attested, and thus the agreement in New York would have “minimal weight, if any” citing a previous case in the New York Appeal Court that a document “would carry no legal force except for the minor impact of its historical voice”.
  • It would therefore be unjustifiable to attribute weight to the agreement when under the law that both parties signed it under it would not be granted any weight,
  • While it could not be said that the husband was afforded a full appreciation of the legal implications of the document, and it was not proven satisfactory that the solicitor who gave the advice was not compromised. The situation showed apparent bias.
  • The agreement didn’t serve any needs of the husband,
  • Thus Justice Mostyn attributed no weight to the pre-nuptial agreement.

Since all of the assets in the case either were or had their origin in non-matrimonial property, the claim was decided solely by reference to the principle of needs.

Mr Justice Mostyn said:

“The following are relevant considerations in determining the reasonable needs of the husband:

  1. i) This was a 12-year cohabitative relationship.
  2. ii) As a result of the way that the parties organised their married life the husband has made no provision for himself from his earnings either by way of savings or pension.iii) The standard of living, whilst not by any means a determinative factor, is relevant and was in this case reasonably high.
  3. iv) It is in the interests of the two children of the marriage that their father has a reasonable home in which they can stay with him comfortably and that they do not perceive him as being in some way the poor relation.
  4. v) The husband will not be making any contribution to the maintenance of the children or to their school fees – they will be supported entirely by the wife save in respect of those incidental expenses met by the husband during the time that the children spend with him.vi) In respect of the sum allowed for the husband’s housing it is not necessary for all of it to be provided to him outright. There was agreement at the Bar that it would be reasonable for half of the housing sum awarded to be charged back in favour of the wife (or her estate) on the death of the husband.”

He awarded the husband a lump sum of £1,333,500 of which £375,000 was subject to a charge-back.

The English court is not bound to make an order in the same terms as a prenuptial agreement. While it could make a good defense against financial claims, at certain necessary times the court may make orders different to them.

Pre-nuptial agreements can be reviewed, they are not set in stone. A rational marriage can decide for itself if people should be held to the terms of a historic agreement and avoid costly litigation.

Or in summary, if big money wants to play silly buggers with contract law the courts will have none of that mischief and works with what is most realistic.

 

Money and Property after a Marriage Ends

The court in the UK will general divide things in half, but that is merely the starting point. Matrimonial assets refer to money and properties that were gained during the course of the marriage, which may include

  • Family home
  • Other real estate
  • Pensions
  • Savings
  • Vehicles
  • Furniture & appliances
  • Stocks, bonds and mutual funds
  • Businesses

The court aims to divide assets in a fair and equal manner, but this doesn’t mean a mathematically equal measure. The court will seek to provide for

  1. The relative needs of each party – the spouse with the weaker economic situation may be given more as part of the settlement, such as the home, etc., unlike the spouse who can afford multiple properties.
  2. Child custody – the spouse who is responsible for primarily caring for the children would need to be awarded more to secure their welfare.
  3. Compensation for future earnings – the spouse who sacrificed their career in order to care for their family and children may be awarded more in capital in order to get back on their feet and prepare to rejoin the workforce.

Also do note that it’s not just assets that can be distributed, but also debts. Everything accrued during the marriage period may be split during the decision. This may include mortgages, credit cards, loans, and other commitments.

It is not easy to quantify the worth of being a good mother or father, but such a thing has a far greater influence than merely the number of properties or figures in the bank account. The UK courts recognize the value of the physical, emotional, and psychological support provided by the non-working party in a relationship.

redundant business woman

Enhanced Redundancy Protections 2020

Will you be removed from your job for redundancy in 2020? It’s an ever-more pressing fear in the looming environment of economic uncertainty, but as an employee you too have rights and options. There are some new legislation coming that may help to address some of these issues.

Defining Redundancy

Before you can appraise if you have a valid reason to claim or contest redundancy, first we must define what redundancy is. According to the Employment Rights Act 1996, an employee has been dismissed for redundancy if the reason is that:

  • the employer ceases to carry on the business in which the employee was employed;
  • the employer ceases to carry on that business in the place where the employee was employed;
  • the needs of the business for employees to carry out work of a particular kind cease or diminish; or
  • the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.

Note how this means a need for the same amount workers to do a particular job has diminished, not that the need to perform a job has diminished. If a task can be done with fewer employees, or if a company must move or restructure, then that is a valid case for redundancy. If there simply is less incoming work for employees to do, that is not redundancy. If you are doing a job and then they get someone new to fill that job, that is not redundancy! Redundancy happens when the job you are supposed to be doing no longer exists.

It is illegal in the UK to use redundancy as a reason for a dismissal when there no legitimate issues with employee performance.

Redundancy is often used as a convenient excuse for firing employees for reasons less sensitive to voice. It may be a matter of job performance, friction in the workplace, business income failing to support the number of employees, or some form of discrimination. If you get a notice that you may be let go for reasons of redundancy, it may be prudent to look behind that for the real reason.

There are upcoming laws in 2020 that make the excuse of redundancy easier to challenge. It is also sometimes advantageous for an employee to claim redundancy, since there are enhanced redundancy pay arrangements for long-serving employees. Get all that you are entitled to in a dismissal.

 

woring beyond Retirement Age

Working Beyond Retirement Age

The UK does not have a default retirement age anymore, and employers may no longer force employees to retire. Now, a company may have its own retirement cut-off age policy, but all dismissals must come from a justifiable basis instead of simply entitled discrimination, age-related or otherwise.

In a recent judgment of Ewart v The Chancellor, Master and Scholars of the University of Oxford, the Employer Justified Retirement Age policy was meant to provide a proportionate means of creating opportunities of employment for younger and more diverse staff. However, the statistical evidence provided by the claimant proved that the policy only created a small number of vacancies. It was decided by the tribunal that the University did not show sufficiently that the policy contributed to the achievement of its legitimate aims to an extent that it can justify the discriminatory effect.

State pension age in the UK is increasing, and age discrimination is something that concerns many employees who are at approaching an age where finding a new job is quite unlikely if dismissed.

 

Maternity Leave

Pregnancy and Maternity Leave Protection

Many employers don’t like paying out for maternity leave because it is a long period of time of reduced productivity, and there is an urgent need to find someone else to perform the job that the pregnant employee must leave behind. Then once the new normal has settled in, is there a need anymore for the previous employee? This is why women need stronger maternity protections as the mere mention of ‘pregnancy’ sends alarm bells ringing for employers.

According to a government report, one in nine women had been fired or made redundant when returning to work after having a child, or were forced out from unfair treatment. Research estimated that up to 54,000 women a year felt they had to leave their jobs due to maternity discrimination.

Maternity discrimination is of course illegal, and those on maternity leave have special protections in a redundancy situation. Under the Good Work Plan of 2020, there will be expanded redundancy protections – six months after return to work, and up to two years in total for the maternity period.

According to Regulation 10 of the Maternity and Parental Leave Regulations 1999, if your job is at risk of redundancy but you need to be present for interviews – if for health reasons you cannot be present, you do not have to attend interviews. Regulation 10 says that you should be given first refusal over suitable alternative jobs that are not substantially less favorable than your original job, over other employees being made redundant.

Sefton Borough Council v Wainwright EAT 2014 notes that a woman on maternity leave should be considered alongside other employees when assigning employees into other posts.

Men also have protections under Shared Parental Leave in the first year after birth or adoption to be immediately offered suitable alternative employment.

Dismissal Comes before Redundancy Trial Periods

The case of East London NHS Foundation Trust v O’Connor has Mr. O’Connor working as a Psycho-Social Intervention (PSI) worker for an NHS trust. In March 2017 he was informed that the role was being deleted under restructuring on 3rd of July 2017 and he was offered an alternative role of Care Co-ordinator. He began a trial of the role on that date.

O’Connor raised a grievance that the role was not a suitable alternative and the trust agreed to extend the trial period until this was resolved. In Nov 2017 his appeal was rejected and he declined the offer of the Care Coordinator role again. He was dismissed on Dec 2017, and the trust refused to make statutory redundancy payments on the grounds that it believed that the alternative employment had been unreasonably refused.

A tribunal decided that O’Connor had not actually been dismissed until December, and as such the trial period was not in actuality a statutory trial period.

If you are given notice that your role is being deleted, there is no rule of law that the notice of deletion was inevitably amount to a dismissal. Employment solicitors have noted that an employer must also carefully follow procedures in removing employees for redundancy instead of assuming things.

What if the Whole Company Goes Bust?

How will you get redundancy payments when your employer or company turned insolvent and now completely unable to pay your wages? Then you can claim it from the Redundancy Payments Office and the National Insurance Fund.

The Redundancy Payments Service was started to allow employees to receive their Statutory Redundancy Pay in a much more timely manner than having to wait for their employer’s assets to be liquidated.

You may claim your:

  • redundancy pay
  • holiday pay
  • unpaid wages/overtime
  • statutory notice pay

You may apply online at https://www.gov.uk/claim-redundancy.

same sex marriage - lovely lesbians kissing on a beach

Unexpectedly, same-sex marriage might force Northern Ireland to have a government again

England, Wales and Scotland all legalized same-sex unions in 2014. The Republic of Ireland voted in a referendum to legalize it in 2015. Northern Ireland remains one of the few territories within the EU zone that still bans same-sex marriages. Northern Ireland however possesses its own parliament, and their own independent judiciary and court system, though the highest court of appeal remains the UK Supreme Court. Northern Ireland also has its own unique issues, such as the fact that it doesn’t quite have a government right now.

The British Parliament decided to slide past the collapsed Northern Irish Assembly to force the government of Northern Ireland to legalize both abortion and same-sex marriages. Landslide votes in the House of Commons do not yet automatically change the law in Northern Ireland. However, since the Assembly in Stormont, East Belfast remains defunct since its collapse in 2017, if this assembly doesn’t resume its duties by the deadline of October 21, the amendments will stand and come to force.

MPs from the Democratic Unionist Party (DUP) voted against and argued that the parliament in London was drastically overreaching their grasp and such matters should remain to be resolved by Stormont. And they will. If the DUP and Sinn Fein could come back to terms in the assembly and restore the government.

2 gay men in sea water

Unexpectedly, many different-sex couples want to have the right to have Civil Partnerships over Marriage too

Prior to the legalization of same-sex marriage in the UK, there was Civil Partnership Act 2004 that allowed them to enter into civil partnerships rather than marriages. Over time the rights assigned to civil partnerships have been much the same as marriage. Unexpectedly, it was raised that the Civil Partnerships Act 2004 might be against the EU Convention on Human Rights for being discriminatory.

The Civil Partnerships, Marriage and Deaths (Registration etc.) Act 2019 will formalize options allowed to heterosexual couples who wish to enter into a civil partnership rather than marriage. Why would they prefer this form of civil union? Here are some reasons:

  1. Marriage carries with it the historical and religious ‘baggage’ that the couple may feel uncomfortable with endorsing.
  2. Marriage is a rite that involves inviting family and friends and hosting a celebration afterwards, some may feel this is too expensive or an invasion of their privacy.
  3. Cohabiting couples are surprised to learn that they don’t actually have as many protections equivalent to marriage as they had assumed.
  4. This will allow transition from or into marriage if one of the couple undergoes a sex change operation.
  5. Legitimacy for children born at a time parents were not formally married.
  6. The recognition of overseas relationships.
  7. Etc.

Voiding a civil partnership is similar to divorcing, often served by the same form and assisted by the same divorce solicitors. There are some peculiarities to civil partnerships however, such as adultery by itself not a valid ground for dissolution, and of course that it may be voided by entering into marriage.

Expectedly, No Fault Divorce will make divorce easier and less costly

The current system of divorce is adversarial, which induce unnecessary stress on the family. Regulations state that one party must be at fault, or that living with them is intolerable. Couples must live apart for at least two years before they may separate fully. Also, one party may deny the divorce – but if they live apart for five years only then will consent no longer be required.

The consultation paper Reducing Family Conflict: Reform of the Legal Requirements for Divorce also stated how the current law aggravates family conflict.

  • A. The question of fault forces couples to take up hostile positions

The need to cite evidence means digging up whatever allegations necessary to prove fault, which may aggravate and humiliate the respondent that the marriage itself becomes irreparable. The defense process increases acrimony, instead of a solution to family justice.

Once the petition has been filed – because of the need to prove fault and the provisions that require lengthy separation before a non-acrimonious dissolution is granted – this strictly works against agreement and reconciliation that could have saved the marriage.

  • B. The law doesn’t actually address the reasons why the marriage breaks down

The divorce petition is concerned only with the fact that the marriage has broken down, not why. The reasons given in the petition may not even be true, but simply the easiest and fastest option for both concerned. Adultery, separation, and other acts that may be grounds for divorce could be simply symptomatic of a desire to dissolve the matrimony.

  • C. The law is open to manipulation

The current law was remarked to be ‘procedurally unfair’, with only 2.28% of all petitions are actually contested in court. Due to the need to provide evidence, even if respondents may agree to the divorce, they may feel it is necessary to disagree vehemently with the allegations in particular used to support the petition.

In practice, many family lawyers and judges feel that the defense is costly, unhelpful, and ultimately futile and imposes unnecessary burden on the courts. Furthermore, outcomes usually reflect the relative bargaining capacity of both parties, and can be misused by vindictive spouses to make the divorce unnecessarily difficult. Divorce terms can be financially abusive even after escaping an emotionally abusive marriage.

Divorce petitions can be considered not a legal issue in itself but a means to construct a narrative that would secure a legal divorce. Those involved, even when they both agree, are highly incentivized to manufacture ‘facts’ to support their petition.

  • D. The current law does not support the emotional needs of children

Research has shown that although children are inevitably affected when their parents separate, it is a far greater cause for social and behavioural problems to see the hostility between them. Where children have been encouraged to take sides, their relationship with both parents are instead impacted severely as from the conflict of loyalties and a child’s keen awareness of hypocrisy.

Furthermore, due to the artificial requirements of consensual separation as grounds for divorce, many are forced by financial reasons to live ‘separately’ as two households under one roof. This creates an artificial atmosphere that is confusion and harmful to children.

Proposed changes to reform the divorce process are concerned with three main outcomes.

  • That the decision to divorce is a measured one, that gives spouses all opportunity to change course.
  • That they are not put to legal requirements and hardship that do not serve their or the state’s interests.
  • To avoid ongoing conflict and poor outcomes for children.

Couple in London, UK

Unexpectedly, the UK actually sees the lowest level of divorce rates in 45 years

According to the Office of National Statistics, in 2017, there were 101,699 divorces down from 106,959 of 2016. This is the lowest since 1973. Divorces peaked in 1993 with 165,018; 1985 with 160, 300; and first in 1972 with 119, 025. However what is missing is that 1972 was also the record highest in marriages with 426, 241 marriages that year. There were much less divorce rates prior to the Divorce Reform Act of 1969, effective 1971, for obvious reasons.

All this shows is the ongoing decline in couples choosing to get married, which means overall there are fewer couples to divorce,” spoke Frank Young, head of family policy at the Centre for Social Justice, explaining that the drop in divorce rates was no reason to celebrate. “Marriage is increasingly a middle-class perk with 87 per cent of higher earners getting married compared to only 24 per cent of lower earners.

Since the 1970s, marriage rates have been decreasing while the divorce rates have more or less managed to remain stable. Waxing nostalgic about 33% of divorces happens when there are 426, 249 marriages to merely 119,025 divorces. In recent years over 45% of marriages end in divorce because since the 1990s, marriages dropped hard below the 300,000 per year rate while divorces hovered around the 160,000 per year rate. 2015 was the best of recent years at 42%, with 239, 020 marriages compared to 101,055 divorces.

It is hoped that by making marriage easier, and making it less painful to separate, this might encourage more marriages that promote stability in the family; wherein there are two partners facing the same challenges and giving support to their children.

Women should not need marriage for financial security and social status and, increasingly, they don’t. Often, marriage makes women poorer, because it creates dependents,” Tanya Gold wrote for The Observer.