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Return of the divorced

19 June 2015
Issue: 7657 / Categories: Legal News
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Recovering economy spurs rise in claims for more money

The number of divorced people returning to court to claim more money from their ex has more than doubled in the past year.

Some 29,060 people made a post-divorce financial claim in 2014, compared to 14,690 people in 2013, according to figures collected by law firm Hugh James.

The reason many ex-spouses return to court is that couples often fail to obtain a court order to formalise their financial agreement when they divorce, for example, where they reach their own informal settlement, according to Hugh James. Without this order, an ex can bring a new claim even years after their marriage was dissolved. Earlier this year, for example, the impoverished ex-wife of the multi-millionaire founder of Ecotricity brought a claim against him more than 20 years after they divorced, even though he was a penniless hippy living in a van during their marriage, in Wyatt v Vince [2015] UKSC 14.

During the recession, couples often preferred to make an informal division of assets in order to keep costs down. The number of claims brought outside the divorce process also dipped, to just 3,620 in 2011. Without a binding legal agreement, however, there is no time limit on one partner pursuing a further financial claim.

Meanwhile, the recovering economy has made such disputes more likely.

Charlotte Leyshon, associate at Hugh James, says: “The final step of having an agreement reached through mediation or arbitration formalised and adopted as a court order is crucial.

“Failure to do so leaves the door open to an unexpected future financial claim. Claims over pensions are a common reason for ex-spouses going back to court after a divorce. Since they are complex and not always relevant to immediate financial needs, they often don’t get the attention they should.”

 
Issue: 7657 / Categories: Legal News
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