How Do You Value Company Shares for Divorce?
How do you value company shares to reach a financial settlement? Our Manchester divorce solicitors have to answer this question when looking at divorce and the family business and negotiating financial settlements.
If a husband and wife cannot agree on the value of company shares, the husband or wife can start financial court proceedings. In the financial court case, a judge can order the valuation of shares by an independent forensic accountant. Ultimately, it is for the family judge to decide on what is a fair value of any company shares and to make a financial court order.
A fair financial settlement
The family court objective is to reach a fair financial settlement.
What amounts to a ‘’fair financial settlement’’ is subjective. A husband's opinion on a fair financial settlement may vary wildly to that of his estranged wife.
When deciding how to split family assets the court applies statutory factors, such as the length of the marriage and the husband and wife's ages, to reach what the court considers a fair result.
Although the court looks at statutory criteria when making a financial court order, the judge can exercise discretion. That discretion partially explains the number of appeals against financial court orders. The other reason spouses are often disgruntled with a financial court order is that they do not perceive the financial settlement to be fair as fairness is ‘’in the eye of the holder’’.
Valuing company shares to get a fair financial settlement
The fairness of the financial settlement depends on assets, such as property or company shares, being valued correctly.
To add to the complexity of valuing company shares, frequently our divorce solicitors need to ask experts to value the company shares at different dates.
For example, a forensic accountant may be asked to value company shares at:
The date of separation; and
The date of cohabitation or marriage; and
The date the company shares were transferred of gifted to a husband or wife.
The Martin case and valuing company shares
The Martin case shows just how complicated it can be to value shares in a non-listed company.
Last year a judge had to decide how to split the Martin family fortune of roughly 182 million. Mr Justice Mostyn decided Mrs Martin should get about £73 million of the family assets. That is about forty percent of the family assets.
After a long marriage, Manchester divorce solicitors start from the premise that family assets should be divided equally on divorce. Equality can be departed from if there are good reasons to do so.
Mrs Martin therefore thought that the financial court order was unfair and that she should get more. Mr Martin was also of the view that the financial settlement was unfair.
Accordingly, Mrs Martin appealed to the court of appeal and Mr Martin cross-appealed.
The facts of the Martin case
Mr and Mrs Martin had been married for 29 years and had two adult children. This was a long marriage.
At the time of their marriage, Mr Martin owned shares in the family company and Mrs Martin was a shop floor employee. There were no prenuptial agreements in place. If there had been a prenuptial agreement this could have potentially avoided the contested court proceedings or narrowed the issues.
Valuing a company in divorce and financial settlement proceedings
The appeal centred on the valuation of the shares in the company, Dextra Group PLC, at the time that Mr and Mrs Martin began to cohabit.
At the time the couple began to live together the company was not listed. An expert was instructed to prepare a report on the value of the shares.
Mrs Martin valued the shares at 1.6 million at the date of cohabitation. The judge decided the shares were worth 44 million.
The valuation of the company shares at the date of cohabitation was key to deciding if Mrs Martin’s 73 million was a fair financial settlement. That is because Mr Martin said the value of the company shares he owned at the date of cohabitation should be ‘’ring-fenced’’ and not shared with Mrs Martin.
The Martin court of appeal decision
The court of appeal decided to refuse Mrs Martin’s request for more than 73 million of assets.
The court of appeal concluded that the first judge had reached a fair decision. Their view was that a judge is entitled to take a view on the value of the assets and wealth that a husband or wife brings into a marriage.
In other words, the court of appeal rejected the idea that judges should just focus on the accountant’s figure for the value of the company shares at the time of cohabitation.
The court said that a financial settlement '’ involves a holistic, necessarily retrospective, appraisal of all the facts and then the application of a subjective conception of fairness, overlaid by a legal analysis.’'
The court of appeal has reconfirmed to divorce solicitors that the financial settlement fairness test is subjective.
That subjective approach makes it all the more important for spouses to take early specialist legal advice from divorce solicitors who are experienced in divorces involving family businesses and in assessing what a court is likely to determine as a fair financial settlement .
How can Evolve Family Law Solicitors help?
For expert legal assistance with divorce and financial settlements, contact us.
Robin Charrot
Jun 13, 2019
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5 minute read
Should We Separate or Divorce?
Deciding whether to separate is never straightforward, whatever your circumstances. Sometimes the decision is not of your making and that can be as difficult to come to terms with.
At Evolve Family Law, we talk to clients who are:
• Not sure of what they want to do; or
• Clear that divorce is the right option for them; or
• Have been separated for many years and want advice on changing or enforcing financial or children court orders.
Many people are wary about taking divorce advice because they think they should know what they want to do before they see a solicitor. That is not the case. Experienced solicitors always like to discuss options so you can make an informed decision about what is right for you.
Should we separate?
That is a tough decision that only you can make. As experienced Manchester divorce solicitors, we can talk to you about your legal options and potential outcomes. Many people canvass views from friends and family when deciding whether to separate. Everyone has his or her own experiences and agenda but what Evolve Family Law will not do is push you into a separation or divorce.
When should I tell my partner?
Timing can be crucial, as you may want to think about making sure that you have access to funds, your paperwork and possessions before talking to your partner. You may also want to make sure that you or your partner can have space away from one another. For some people that involves making sure they can stay with friends or family or that their partner can do so. If you are worried about your partner’s reaction, you may need an injunction.
Talking to the children
Ideally, parents should talk to children together so that the children know that both parents are going to continue to look after them, but in separate households. There is a lot of information and support available for both parents and children to help parents answer children’s questions in an age appropriate way.
Leaving the family home
It is always sensible to take legal advice from a Manchester divorce solicitor before leaving the family home. Many people think that if you leave the family home you will lose your claim to a share of the property. That is not the case but the decision to leave the family home can have a big impact on the children and on how long it can take to reach an agreement. Legal advice is therefore key to making the right decision, rather than feeling pressurised or desperate to leave, as you do not know your options.
Secure your computer and your documents
If you take the decision is taken to separate you may want to keep some information private. Think about changing passwords for your phone, laptop or computer.
At a later stage, you will need to provide your financial documents and paperwork. If you are concerned that your partner may remove your paperwork make sure that you put it in a safe place as it can take time to obtain duplicate information.
Joint bank accounts and credit cards
If you and your partner have joint bank accounts and credit cards you may want to think about making sure that funds are not taken from the accounts. Ideally, this is something that should be agreed. However, if you fear that funds could be taken then accounts can be frozen or overdraft or credit facilities reduced.
Many couples who are able to split up on an amicable basis continue to use a joint account until they reach a financial settlement. This is not appropriate for all families.
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Maintenance and child-support
People worry about paying bills if they split up from a partner. Ideally, after taking legal advice, you and your partner will discuss financial support to include spousal maintenance or child maintenance until you decide, on a long-term basis, how assets and property should be split.
Taking advice from a Manchester divorce solicitor will help you know what is fair and reasonable. If you cannot reach agreement then mediation may help you sort out temporary financial arrangements. If you and your partner struggle to agree then the court can make temporary financial support orders.
Whether you decide to separate, divorce or stay Evolve Family Law can help you explore your legal options so you can make an informed decision.
For legal help with divorce proceedings and financial claims or childcare arrangements please call Contact Us Today
Robin Charrot
Feb 19, 2019
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4 minute read
Enforcing Financial Court Orders
As a Manchester divorce and family finance solicitor I spend my days negotiating financial settlements or representing clients in divorce and financial court proceedings. However, after many years of experience in family law, I appreciate that even after you have secured a financial court order it is not over until a husband or wife has received their divorce financial settlement.
The high profile case of Farkhad and Tatiana Akhmedova really emphasises just how difficult it can be to enforce a court order and get the money after a divorce financial settlement.
The case of Farkhad and Tatiana Akhmedova
In 2016, an oil and gas tycoon, Mr Akhmedov, was ordered to pay about 40% of his wealth to his wife, Tatiana. The award by the high court in London was hailed as one of the biggest divorce settlements at the time that it was made .That is because the Russian billionaire had been told by a London judge to hand over about 453 million to his ex-wife.
Roll on two years; Mr and Mrs Akhmedov have hit the headlines again. Mrs Akhmedov has finally received some of her divorce financial settlement. The path to her getting the money has been far from straightforward. Mr Akhmedov reportedly did not agree with the court decision, believing it to be wrong.
That left Mrs Akhmedov with a financial court order that said she should get a 90 million-art collection, property in England worth 2.5 million, a £350,000 car and a 350 million cash payment. However, the reality was that she had little more than a piece of paper from the court that was only worth anything if it could be enforced.
Applying for a freezing order after the settlement
As Mr Akhmedov had not complied with the financial court order and handed over the cash and property in accordance with the financial court order Mrs Akhmedov applied for a freezing order. She then employed specialist asset tracers to try to locate and unravel ownership of assets to ensure that she got her financial settlement.
Although the figures for Mr and Mrs Akhmedov are eye watering it is nonetheless the case that freezing orders have to be considered either during or after financial court proceedings. After all, there is little point in obtaining a financial court order if it cannot be enforced because the assets have disappeared through sale or transfer to third parties.
Recovery of assets after the divorce settlement
The asset tracers employed on behalf of Mrs Akhmedov have recovered a helicopter that was used to transport people to Mr Akhmedov’s yacht. It is reported that the sale of the helicopter has raised just under 5 million. The yacht is impounded in Dubai. There is ongoing legal argument over seizure of the 300 million super yacht and the recovery of other assets.
Enforcing the court order
You may wonder why Mr and Mrs Akhmedov are locked in such an expensive court battle. The rationale behind Mr Akhmedov’s objection to complying with the London financial court order is, at its simplest, that he does not believe the London high court had jurisdiction to make the financial court order for a variety of reasons. Furthermore, Mr Akhmedov maintains that the assets are held in trust or by companies and therefore the financial court order cannot be enforced against them.
Enforcing court orders: getting the money after a divorce financial settlement
You may question how the case of Mr and Mrs Akhmedov is of relevance to anyone other than Russian oligarchs. However, the principles of enforcing court orders and getting the money after a divorce financial settlement are just the same whether you are seeking to recover multi millions or thousands of pounds.
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Tips on enforcing court orders after a financial settlement
In my experience when it comes to getting your money after a financial court order it is sensible to:
Plan ahead : ideally you should take legal advice before you separate so that you know where you may stand financially ;
Get a tenacious solicitor : you will need a solicitor who is proactive and a specialist family lawyer if you need to try and find assets during the financial court proceedings and recover assets after the financial court order has been made;
Think about enforcement and recovery when negotiating the financial settlement: sometimes you want the holiday property in Barbados as part of your divorce settlement. It does however reap rewards if you think about how easy it will be to enforce the court order before you finalise the financial settlement;
Take advice on injunctions to preserve assets: if you fear your spouse will deliberately sell or transfer assets to defeat your financial claims you can apply for what is known as a section 37-injunction order;
Take care with the wording of the financial court order: make sure that the order is expertly drawn up to help with enforceability. For example , if the court order says the family home is to be sold anticipate issues and have clauses put in about how the sale price will be determined or what happens if you receive offers on the property and cannot agree on the sale price;
Do not delay: if you have a financial court order and it has not been complied with in the court ordered timetable do not delay in enforcing the court order. Delay may be very prejudicial to you, for example if your spouse is at risk of bankruptcy or might leave the UK making it harder and more expensive to trace assets.
It goes without saying that as well as needing a tenacious divorce and family finance solicitor you also need to be equally tenacious and patient. These are skills that Mrs Akhmedov has probably had to learn since her 2016 financial court order.
For legal help with financial claims in divorce proceedings or enforcing financial court orders please Contact Us Now
Robin Charrot
Feb 11, 2019
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5 minute read
What Is Domestic Abuse?
You would think that in the 21 century we would all know what domestic abuse is. Sadly, that is still not the case. As a divorce and children solicitor, I still come across spouses and other legal professionals who talk of ‘a bit of a push' or seem to think that the inappropriate behaviour was ok because the children did not see it.
The good news is that domestic violence is now in the news for the right reasons as the government is introducing a new bill that will:
Introduce a legal definition of domestic abuse to include economic abuse, as well as controlling and manipulative non-physical abuse; and
Stop the cross-examination of domestic violence victims by their abusive ex-partners in the family courts ; and
Make domestic violence perpetrators go into behaviour-changing rehabilitation programmes ; and
Make victims of domestic violence automatically able to get protection when they give evidence in criminal trials ; and
Clarify how “Clare's Law” should work. This law lets the police tell a member of the public if there are concerns over about previous violence committed by their partner ; and
The creation of the role of national domestic abuse commissioner. They will improve the public services response and support for victims of domestic violence.
What is domestic abuse?
Some forms of domestic abuse are obvious but I will list them all:
Physical abuse ; this can range from extreme violence to a punch , shove or push;
Sexual abuse; this can be all forms of unwanted sexual contact;
Psychological or mental abuse; this can range from extreme mind games to derogatory remarks , for example ,telling someone they are a ‘’nutter’’ ;
Harassment ; this can range from stalking type behaviour outside someone’s home to online harassment on social media accounts;
Coercion and control; this can take many forms; from not allowing a spouse to leave the family home unaccompanied to financial control and restricting a spouse’s access to funds.
Some people will not recognise all of those behaviours as abusive but they are.
Response to domestic abuse
As a divorce and children solicitor, I meet husband and wives’ who have been subjected to domestic abuse. Their response can be:
Accepting of the behaviour ; often a spouse will be told that the domestic abuse is their fault , for example , if only they did not ‘‘wind them up’’ it would not happen;
Normalising the behaviour ; thinking that it is’’ just a bit of a slap’’;
Denying the behaviour ; thinking that the domestic abuse is ‘’ all in their mind,’’ often after having been repeatedly told that they are the ones with the mental illness;
Responding to the behaviour ; by starting to become abusive to their spouse or others as domestic abuse has become the ‘’norm’’ within the household;
Justifying the behaviour; for example saying that the domestic abuse only happens because of a spouse’s stressful job or family pressures.
However, someone responds to domestic abuse they will need help and support to come to terms with the impact of domestic abuse.
The impact of domestic abuse
Most experts are agreed that being subjected to or witnessing domestic abuse can lead to:
Low self-esteem;
Low mood;
Isolation from friends and family;
Indecisiveness.
Often spouses take the decision to leave when they see the impact that adult domestic abuse is having on the children. A parent can be a loving mum or dad to their children but abuse their spouse. Even if the children do not always see the abuse, the atmosphere and tension can be very damaging to their welfare.
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Injunction court orders
An injunction order is just one means of protecting a spouse or children from domestic abuse.
An injunction is a court order stopping a named person from taking a step or ordering a step to be taken, such as:
Stopping an assault or harassment by an ex- partner (called a non-molestation order);
Ordering one spouse to leave a family home until the court decides what should happen long term with the family home (called an occupation order );
Removing a child from one parent’s care if child abduction is a fear;
Preventing one spouse from taking money and assets until the court decides how property and assets is split in the financial settlement (called a freezing order).
If you are concerned about your children, the court can also make an urgent child arrangements order. This order settles with whom the children should live and whether they should have contact with the other parent. In a crisis, the court can make temporary orders in addition to injunction orders.
How do you get an injunction order?
You, or your solicitor, have to make a court application, supported by a statement and evidence. The evidence you need depends on what you are trying to stop or prevent.
What are the grounds for an injunction order?
The grounds depend on the injunction order that is requested from the court.
If you are worried about your safety or the physical or emotional safety of your child, Evolve Family Law can assess your options, including the option of applying for an injunction order.
Is an injunction order permanent?
Normally injunctions are temporary court orders designed to help a family until they or, if necessary, the court is able to make long-term decisions about the custody and contact arrangements for a child or the sale or transfer of the family home. However, an injunction order can be an essential protective measure that is needed before long term decisions can be made.
Legal help with domestic abuse
If you need help to apply for or oppose an injunction or children application then our specialist team of family solicitors can help take urgent steps to protect you and your family. Contact Us Today
Louise Halford
Jan 22, 2019
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5 minute read
Divorce and Family Money Held in Trust
It is often assumed that divorce and family money in trust is the preserve of the ultra-wealthy but that isn’t always the case as was established by the court proceedings concerning Henry and Ellen Wodehouse. It is reported that the money placed in trust by the late Earl amounted to about £600,000 but the trust fund was a discretionary trust with 15 potential beneficiaries including Mr Wodehouse’s stepmother.
Henry Wodehouse, the third son of the Earl of Kimberley, whose claim to fame was that he was the most married UK peer having tied the knot 6 times before his death , has hit the headlines as a result of his own divorce. Why is that newsworthy? Henry Wodehouse’s divorce has hit the headlines because the financial battle between him and his estranged wife centred on money held in trust, set up under the terms of his late father’s Will.
The case of Henry and Ellen Wodehouse was the subject of media reporting after it was said that Mrs Wodehouse was reduced to living on her brother’s boat after losing a Court of Appeal case that centred on whether she should get a £90,000 payment.
Trusts are also often thought of as ‘’old money’’ but in Mr Wodehouse’s case the money had been placed in trust by his late father, rather than generations earlier.
When a family court considers divorce and trusts the court’s first consideration is whether the trust is a nuptial trust or a non-nuptial trust. If the court finds that the trust is a nuptial trust the court has wide powers and can change who benefits from the money in the trust. If the trust fund is found to be a non-nuptial trust then the family court powers are far more limited. Normally the court would focus on awarding the spouse who was not a beneficiary of the trust fund all or a greater share of the family assets , on the basis that the spouse who was a discretionary beneficiary of the trust fund would likely receive either capital or income distributions from the trust fund.
Sadly that solution didn’t work for Mrs Wodehouse as, other than her husband's very modest pension, there were no other assets as all the equity in the family home had been eaten up by secured debt, leaving the trust fund as the only asset of substance until the Court of Appeal ruled that the particular trust was of a type that could not be ordered to pay Mrs Wodehouse a lump sum payment or be ordered to pay the amount to Mr Wodehouse to then hand over to his ex-wife.
Mr and Mrs Wodehouse married in 1992 and separated in 2011. During the marriage Mr Wodehouse had his share of financial difficulties, being made bankrupt in 1990 and 2010. Mrs Wodehouse had health problems making working difficult. The couple went to court to sort out how their property and money should be split. It was ascertained that whilst they owned a family home there was no money in it as there was more debt secured against the house than equity in it. Where did that leave Mrs Wodehouse? The first judge said she should get a lump sum payment and a share of her husband's pension. Mr Wodehouse appealed to the Court of Appeal saying that he had no money to pay the lump sum and that the court could not expect the trust fund to pay the amount of £90,000 to Mrs Wodehouse. His barrister argued that the trust fund was a discretionary fund, Mr Wodehouse had no entitlement to the trust money and the trust had not been a party to the original financial court proceedings.
The Court of Appeal, whilst expressing sympathy for Mrs Wodehouse’s financial predicament quashed the lump sum payment but it did maintain the pension sharing order that provides for Mrs Wodehouse to receive half of her former husband's police pension. The income from the pension is modest and will not go anywhere towards discharging the reported family debt.
How can Evolve Family Law Manchester Divorce Solicitors Help?
The Wodehouse case is a cautionary tale but it should not deter spouses from making financial claims involving trusts. Equally the case highlights the importance of estate planning. Had the money not been placed in trust by Henry Wodehouse’s late father it is debatable as to whether the money would still have been available for Mr and Mrs Wodehouse to litigate over given the creditor’s claims but, through use of estate planning, money has been preserved.
For legal assistance with trusts and financial claims on divorce or any other aspect of family law please contact us.
Appointments available in Manchester and Cheshire.
Robin Charrot
Dec 20, 2018
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4 minute read
Who Gets The Dog in a Divorce?
Few of us can't have been moved by the sight of photographs of Ant McPartlin being greeted by what appeared to be his rather boisterous Labrador dog after the two of them had spent time apart following his separation from his wife, Lisa.
All specialist divorce and children solicitors know the theory behind child attachment and the damage that can be done if, as a result of a separation, one parent loses touch with a child. In an age where we treat our pets as mini humans, with doggie day care, and a vast array of outfits and treats, not to mention the doggie Christmas stocking, it really isn't surprising that as an experienced Manchester divorce solicitor I am increasingly asked 'who gets the dog' as part of the divorce and financial settlement negotiations. On many occasions I have gained the impression that the dog is just as important as money considerations. Many people without pets, and some family solicitors and judges, just don't get that.
In my experience sometimes a husband or wife wants the dog as a means of hurting their spouse, knowing just how important the animal is to their husband or wife, or as a means of continuing control through allowing the occasional access visit. For other couples it is a genuine dilemma with both husband and wife thinking that the dog is better off with them. So if a couple just can't reach an agreement over who should get the dog then it can be left to a judge to make a decision as to the dog’s future.
The Law On Who Gets Custody Of The Dog
For dog lovers it is hard to credit but when it comes to divorce and financial settlement negotiations or court proceedings a dog is treated, in legal terms, as if he or she is a piece of furniture that just happens to be a living and breathing creature. What does that mean for the dog? Well it means that a divorce judge will not be able to decide on if the dog should stay with the husband or wife based on the judge’s assessment of the spouse who is most likely to meet the dog’s physical and emotional needs in the short and long term.
Factors The Court Considers When Deciding Who Gets The Dog?
What the court will not be influenced by is the doleful eyes and whimper. Instead the divorce court will look at factors such as:
Who paid for the dog; and
Was the dog given to the other spouse as a gift; and
Who has paid to look after the dog, for example paid for the daily doggie day care or the vet’s fees?
Nowhere on that list is the dog’s preference if he or she could have a say or even vote with their feet.
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Using The Dog As A Bargaining Tool
Using a child and threats of child custody battles as a bargaining tool in financial settlement negotiations is depreciated but as an experienced Manchester divorce and financial settlement solicitor I still see cases where the dog is being used as a powerful bargaining tool in a divorce settlement. You can imagine the conversation, ‘’ you get Rover, and I get to keep the house’’. Some spouses feel backed into a corner knowing that if a judge had to decide who gets the dog then the judge would not find in their favour, despite the dog being better off with them.
Shared Custody Of The Dog
It isn't that uncommon for a spouse to offer to share the care of the dog, often in a last ditch attempt to try and reach an agreement. For some couples that arrangement might work, especially where there are children and the dog and the children follow the same shared care parenting regime. For other households sharing the care of the dog would just add to the animal’s confusion, especially if there is no consistency in the dog’s routine or diet.
What Can You Do To Gain Custody?
When it comes to sorting out who the dog should live with you may need a tough negotiator, a solicitor who can stand back from the emotions and guide you on your legal options and the likely prospects of success if you were to pursue a court application for the dog.
Robin Charrot
Dec 11, 2018
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4 minute read
How To Get An Online Financial Court Order?
Evolve divorce solicitors are delighted to announce that Evolve divorce solicitors have been asked to join a pilot scheme arranged by the Court service to lodge agreed Financial Court Orders online.
All the divorce solicitors at Evolve Family Law think that it is great news that Evolve Family Law has been asked to participate in the Court led projects to file divorce petitions and now Financial Court Orders online. Why? Well online filing of Financial Court Order applications and all the supporting paperwork is a massive step forward for client service, something that the divorce solicitors at Evolve Family Law strive to improve by using the latest digital technology in a client friendly way to progress divorce documents as quickly and as efficiently as possible. That means that if a client is very techy, Evolve Family Law can contact them with secure online email and with paperwork for online approval. If clients aren’t technologically minded, our divorce solicitors are equally happy to meet clients and pick up the phone and chat. The inclusion of Evolve Family Law in the Court digital project is good news for all our divorce clients.
Prior to being invited to join the Court’s latest online project Evolve divorce solicitors had to send Financial Court Orders to the Court by post. Assuming the post arrived at the correct Court department the Financial Court Order paperwork would then be sent to a judge to look at. Some weeks later, subject to the vagaries of the postal service, a reply might be received at Evolve divorce solicitors; either asking for additional documents, seeking further explanation or clarification of the husband's and wife's financial or personal circumstances or asking for the Financial Court Order to be drawn up and then sent back in the post to the Court for sealing and return to Evolve Family Law solicitors. At times the process of getting the Court to approve a financial document agreed upon by a husband and wife was painfully slow
Why Does a Delay in Getting Your Financial Court Order matter?
From the point of view of the divorce solicitors at Evolve Family Law it is a question of pride in our professionalism and client service. We all want clients to feel that they have had an efficient but personal service and when things go astray in the post or there are delays in receiving letters we believe it reflects badly on us. From a client’s point of view the delay in getting a Financial Court Order matters because:
Until the Financial Court Order is approved by the Court and sealed by a Court official you can't apply to the Court to enforce all or part of the Financial Court Order if it isn’t complied with;
If the Financial Court Order contains a pension sharing order the sealed Financial Court Order has to be sent to the pension administrator to implement the order before the pension can be shared;
If the financial agreement included an agreement to sell or transfer property to a spouse it may be the case that the property sale or transfer can't go ahead until the Financial Court Order is received;
Sometimes a husband or wife will refuse to apply for the Decree Absolute of divorce until the Financial Court Order has been sealed by the Court.
So although the delay in getting a Financial Court Order can be a bit frustrating to some clients to other divorce clients the wait to send and receive the Financial Court Order through the post can cost them money as well as adding to the stress of the divorce proceedings.
Online Financial Court Orders
In the 21st century, online production of Financial Court Orders must be a good thing for both divorce solicitors and clients. Evolve Family Law welcomes the opportunity to take part in the Court pilot project for the filing of online Financial Court Orders. We hope that the pilot project will establish that use of technology, combined with a personal legal service from caring and committed divorce solicitors, is the right way forward for divorcees.
How much does a Financial Court Order cost?
If you have reached a financial agreement with your husband or wife over how you want to split your assets and you want the security of a Financial Court Order then the cost of obtaining a straightforward Financial Court Order is £866. There are no hidden extras – that amount includes VAT and the Court fee. If your finances are more complex and you need your Financial Court Order to cover pension sharing and / or spousal maintenance then the fixed costs are higher or, if you can't reach a financial agreement with your husband or wife Evolve divorce solicitors can give you a bespoke quote for representation in Court proceedings.
Contact our team today for more information
Robin Charrot
Oct 22, 2018
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5 minute read
What Are My Rights Regarding Family Business & Divorce?
As a divorce solicitor specialising in resolving financial settlements, I spend a lot of time looking at business assets within financial court proceedings when it comes to family business and divorce. Many people assume that if they split up from their spouse that their business assets are ring fenced and won't form part of the financial settlement. That isn’t the case. As part of the divorce proceedings the court can order the valuation of a business and order the sale or transfer of company shares, or it can force the company to come up with money to fund a settlement. It is therefore important to get specialist advice from a Manchester divorce solicitor on business assets within divorce proceedings.
Tips for family business and divorce:
Assign a correct value to the entire family business on divorce. Should the business value be net assets, and if so, are the assets valued correctly in the business accounts? Or should the valuation be a multiple of profit, in which case is the profit over or under-stated in the accounts, and what is the correct multiple? Should the opinion of the business’s accountants be relied upon, or does an independent accountant need to be brought in;
Find out how to assess the value of a spouse’s shares in the family business on divorce. This is particularly difficult if they are a minority shareholder, or where other family members hold the other shares;
A spouse who was a ‘sleeping partner’ in the business during the marriage, in order to maximise tax advantages, may suddenly ‘wake up’ on divorce and attempt to interfere with the running of the company, or challenge past transactions;
Where a spouse is also an employee of the family business the spouse has rights and claims as an employee, as well as potential spousal maintenance claims;
Any dispute between spouses over a family business tends to unsettle the other directors, shareholders and employees of the business, and could even destroy the business itself;
What is the right solution to the spouse’s claims against the business? Should they get shares, or cash? If cash is preferred, how can it be released from the family business on divorce (there are many ways) and the tax treatment of each method needs to be weighed up.
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Family Business Protection and Divorce
When a husband and wife agree to separate but want to continue to operate the family business together, it is vital that this agreement is properly documented to avoid disputes and to minimise the risk of a future falling out. Protection can be in the form of written employment contracts, a shareholder agreement and a family financial court order. These documents provide checks and balances, such as recording the agreed policy on declaring dividends or the policy on employing new staff ensuring both spouses have legal protection. With these documents in place, many spouses are able to successfully work together even if they can't continue to live together.
Prenuptial Agreements and Protecting the Family Business on Divorce
As a Manchester divorce solicitor, I am often consulted by business owners where they (or one of the other shareholders) are getting married, and they want to protect the business from the kind of risk and uncertainty which any divorce would create. A prenuptial (or postnuptial agreement if a couple are already married ) can sometimes be the perfect solution, as prenuptial and postnuptial agreements can potentially ring-fence the business completely from claims on divorce, or if this is not possible, the prenuptial agreement or postnuptial agreement can have a number of provisions which protect the family business on divorce.
When it comes to the business of divorce it pays to get the right help from a qualified and experienced divorce solicitors like Evolve Family Law.
Robin Charrot
Oct 18, 2018
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4 minute read
Can the Court Refuse a Divorce?
We are always reading in the press about celebrities getting 'quickie divorces’. Today’s news that a woman whose divorce was refused by the Supreme Court ‘ will come as a surprise to many who assume that in the 21st century if you want to get divorced you can go ahead and do so. Read the full news story.
As divorce solicitors, obtaining divorces on a daily basis we know that getting divorced isn’t plain sailing.
The grounds for divorce
Why did the Supreme Court refuse 68 year old Tini Owen’s request for a Decree Nisi of divorce from her husband? The 3 Judges agreed that the marriage had broken down, with Mr and Mrs Owen living in separate houses and there being no prospect of a reconciliation between the couple. However under current divorce law a petitioner or divorce solicitors asking the Court for a divorce not only have to establish that the marriage has broken down but also that the failure of the marriage is down to one of five specified reasons:
• Adultery;
• Unreasonable behaviour;
• Separation for 2 years with your husband or wife's agreement to the divorce;
• Desertion;
• Separation for 5 years – you then don’t need your husband or wife's consent to the divorce.
Can you get divorced?
The Supreme Court Judges have decided Mrs Owens can't get a divorce based on her current divorce petition. Why? Well although it was agreed that the Owen marriage had broken down the Court wasn’t satisfied that Mrs Owen had established that Mr Owen had behaved unreasonably. As Mr Owen won't agree to a divorce based on 2 years separation that means Mrs Owen will need to wait until 2020, when she will have been separated 5 years, to start fresh divorce proceedings against Mr Owen.Ultimately Mrs Owen will get her divorce but if divorce solicitors are asked then the answer at the moment to the question ‘’can you get divorced’’ is not necessarily and not yet.
What do divorce solicitors and family Courts consider to be unreasonable behaviour?
Mrs Owen didn’t get her divorce because the Supreme Court wasn’t satisfied that Mr Owen had behaved unreasonably. Usually when a husband or wife starts divorce proceedings on the basis of unreasonable behaviour their spouse doesn’t challenge the reasons stated in the divorce proceedings. That is because the spouse sees the divorce paperwork as a means to a common goal of a divorce and a financial settlement. In Mrs Owen’s case her husband objected to the divorce and said he hadn’t behaved unreasonably.
It has long been established by divorce Courts that unreasonable behaviour isn’t falling out of love or drifting apart from a spouse. There has to be some behaviour on the part of the spouse that is so unreasonable a divorce is justified.
Lots of people assume unreasonable behaviour has to be pretty extreme such as an assault but divorce solicitors know that unreasonable behaviour comes in many different forms such as:
• Financially controlling your husband or wife;
• Belittling or demeaning your spouse;
• Refusing to communicate or socialise with your husband or wife;
• Failing to support your spouse, this could be emotionally, financially or in bringing up the children.
There are numerous other examples of unreasonable behaviour. It is important to get legal advice from divorce solicitors before you start divorce proceedings. Why? Well it is important to detail enough allegations of unreasonable behaviour to make sure that the Court is satisfied that a spouse has behaved unreasonably but, on the other hand, the divorce petition shouldn’t be too extreme. If the allegations are too strong it may make it a lot harder to reach a parenting agreement and a financial settlement with your husband or wife.
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Will the allegations in the divorce proceedings affect the childcare arrangements or financial settlement?
This question is often asked of divorce solicitors. It is very understandable as people fear that if they accept the unreasonable behaviour allegations in a divorce petition and don’t contest the divorce that they will end up not seeing the children or the Court will take into account the unreasonable behaviour allegations when deciding how the assets and property are split up.
That is why it is important to get advice from divorce solicitors before you start divorce proceedings or agree to a divorce. Divorce solicitors can agree that although you are not contesting the divorce petition as you both want a divorce that if the allegations in the divorce petition are raised in any future financial or children Court proceedings you can contest and challenge what is said about you. In other words agreeing to the divorce petition is a means to an end whilst preserving your legal rights.
For help from expert divorce solicitors on any aspect of divorce proceedings or for information on financial claims on divorce, contact us.
Robin Charrot
Jul 26, 2018
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5 minute read
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