Charman v Charman [2007] EWCA Civ 503, [2007] All ER (D) 425 (May)
In ancillary relief proceedings where the court was carrying out the statutory balancing exercise under s 25 of the Matrimonial Causes Act 1973, consideration of the “sharing principle” is no longer required to be postponed until the end of the statutory balancing exercise. The principle is that property should be shared equally in the absence of a good reason for departure from equality. The inquiry is always in two stages: computation and distribution.
A court should first consider the matters set out in s 25(2)(a)—the property, income (including earning capacity) and other financial resources which the parties have and are likely to have in the foreseeable future. Likely future income always has to be appraised. The three main principles which together form the second stage of the inquiry—need, compensation and sharing—have to be applied in the light of the size and nature of all the computed resources.
The principle of need requires consideration of the financial needs, obligations and responsibilities of the parties, of
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