A City trader has successfully challenged a divorce judgment awarding her ex-husband of four years £2.7m in a ruling that lawyers say ‘gives couples more to bicker about’.
Mr and Mrs Sharp were married for four years. They had no children together and both worked full-time earning approximately £100,000 per year each. Mrs Sharp, however, did receive significant bonuses amounting to over £10 million during the marriage. Throughout the course of their marriage, the couple kept their finances separate, although they did purchase property together and shared in the costs of acquiring and refurbishing those properties.
Upon Mrs Sharp finding out Mr Sharp was having an affair in 2013, she issued divorce proceedings and the financial elements of those proceedings were initially determined by the court in November 2015. The Judge decided that Mr Sharp was entitled to exactly half of the matrimonial pot, which amounted to £2.75 million. This decision was very much in line with the long-established sharing principle upon divorce. Mrs Sharp appealed that decision and argued that the equal sharing of the matrimonial assets, which were mostly built up by her, was unfair.
The Court of Appeal have recently found in Mrs Sharp’s favour and decreased the award to Mr Sharp to £2million, which is less than 50% of the matrimonial pot. This decision is a significant departure from the long-established principle of splitting the matrimonial assets down the middle upon divorce, despite the length of the marriage.
Lord Justice McFarlane, one of the three Appeal Court Judges, found that in this case there was no impediment to depart from the established principle of equal division and he concluded that in a short, dual career marriage in which the couple had kept their finances separate, it was indeed justified.
This decision creates further uncertainty in the law and conflicts with the general principle of an equal split upon divorce. This case concentrates on the fairness of the outcome in the circumstances of this couple’s situation and clearly reflects the position that the courts will not apply an automatic split down the middle in every case and that the couple’s circumstances must be considered in each and every case.
For the legal world, this now poses the question: How long is a short marriage?
Mr and Mrs Sharp were married for four years; is this now thought to be the benchmark for the definition of a ‘short marriage’? Only time and further case law will tell.
For more information relating to divorce law, finances and how Pinney Talfourd can help, please contact our Family Law department – Call on 01708 229444 or email us using the form to the right. This article was written by Jennifer Herbert, Associate in the Family Law department at Pinney Talfourd LLP Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as of June 2017