Are you safe from Financial Claims by your Ex Husband or Ex Wife?
The media have recently focused on the story of millionaire Dale Vince who faces claims from the wife he divorced 20 years ago. He and his former wife had very little when they were together; they lived in a caravan and neither had a regular job, so when they got divorced they just went their separate ways. His way turned out to be a rather fortunate one, he became a multi millionaire by developing an idea for wind turbines and now enjoys a very good life with his new wife.
His ex wife has not done so well, and decided to claim some of his fortune. That fortune was of course built up entirely after they separated. Despite that, the Supreme Court has ruled that she could make claims and he now faces a court battle to decide how much he must give to her.
This case confirms the advice we have always given to our clients. Financial claims do not stop on divorce, and there is no law that sets a time limit on making financial claims against an ex spouse or even their estate after they die. The only thing that can sometimes restrict claims is remarriage, but not in every case and not against every asset.
If you and your spouse can agree financial matters on divorce, it is a very simple procedure to ask the court to make an order confirming that agreement and dismissing the right to make financial claims in the future. It will add a little to the costs of the divorce, but as Mr Vince would no doubt tell you, it is well worth the extra expense. It could have saved him millions! The case shows that although you may feel this is not worthwhile now, you never know what fortune the future may bring. And if you can't agree matters, it is well worth seeking legal advice to try to negotiate a settlement or ultimately take the matter to court for a final decision.
A financial order can be applied for during the divorce or afterwards. So even if you divorced a little while ago and would like to have protection against financial claims by your former spouse, you should still seek legal advice.
For more information please contact Dawn Coller (01842 756103 dawn.coller@mcp-law.co.uk) or Steve Welcomme (01945 482017 steve.welcomme@mcp-law.co.uk)