A man has won a financial divorce settlement in the UK High Court that will see his ex-wife pay off his “significant debt” because he had received no financial support from her during their marriage.
UK law firm Irwin Mitchell said partner Nathaniel Groarke and solicitor Emma Bates managed the legal affairs of the husband, who was declared bankrupt during the proceedings.
The case saw divorce proceedings collide with insolvency law; following allegations by the wife that the husband had hidden assets and failure by the wife to disclose assets and international complexities.
The pre-nup was also only made five days before the wedding.
The judge decided, based on the husband’s needs, that the wife should pay off the significant debt the husband had accrued as it was determined he had received no financial support from her during the marriage, causing the debt to accrue.
The wife was ordered to pay the sum of £675,000 ($834,375, €772,864) to pay off the debt and purchase him a property, which will revert back to the wife once he dies.
He will also receive 60% of her pension.
Acrimonious divorce
Groarke said: “We are delighted that our client has been given a fair outcome from the divorce, where he otherwise would have been left in serious financial trouble.
“The case was highly acrimonious on both sides and was hugely complex because of the non-disclosure allegations that were made, as well as the international aspects of the case.
“We’re pleased the judge recognised our client’s financial needs should be met to give him a comfortable retirement given the wife’s significantly greater wealth.
“It is, of course, never a happy situation when relations become so difficult between two parties.
“There are many lessons to be learned from these proceedings, namely that proper legal advice is always recommended when it comes to documents like pre-nups, and that if one of the parties is bankrupt then they will still be able to get financial support in a divorce if needed.”
Details
It was a second marriage for both parties, and both had children from other relationships.
The wife was significantly wealthier than the husband, and had assets worth £3m and a net income of more than £100,000 per annum.
Five days before the wedding in 2010, a pre-nuptial agreement was signed abroad with neither party taking legal advice before signing.
They wanted married life to be in the UK, where the wife had a successful business and her children were being educated.
The wife employed her husband part-time in her business, but his main responsibility was taking care of the wife’s twin daughters.
Divorce
The unnamed wife issued a divorce petition in September 2016, after six and a half years of marriage, and the decree absolute was granted in July 2019.
The financial remedy proceedings were first started in 2017, where the wife wanted a full range of financial relief relying on the pre-nuptial agreement.
The proceedings spanned some three years, finally culminating at trial in January 2020.
Advisers beware
Irwin Mitchell’s Groarke added: “Ideally, even though your client might feel it to be harsh, if you do not maintain your spouse pending finalisation of the division of the finances and they end up bankrupt, they could end up spending more.
“So, from a cash flow perspective, it’s something to bear in mind when spouses are considering a divorce.
“In terms of how to avoid a situation like this, make sure that the financial weaker party is able to meet their needs and where debts are mounting, check with the other side’s solicitors that there is no prospect of bankruptcy.
“If there is a risk, ask that they give you notice in advance, so discussions can take place with their financial advisers about whether they need to do anything.”
