AR v AR [2011] EWHC 2717 (Fam) (11 August 2011)

AR v AR [2011] EWHC 2717 (Fam) (11 August 2011)

Where the wealth is overwhelmingly non-matrimonial and inherited, and there are no factors diminishing the weight of that source, the needs principle is determinative. The sharing principle does not justify an enhanced award. The wife's award should be based on a generous assessment of her needs, including housing and income, with a flexible application of Duxbury to provide some additional financial security, but not to the level of a purchased life annuity.

Citation
[2011] EWHC 2717 (Fam)
Parties
Applicant: AR; Respondent: AR
Jurisdiction
England and Wales
Judgment Date
11 August 2011
Procedural Posture
Ancillary Relief (financial Remedy) Following Divorce / Final Judgment
Outcome
Application granted in part; lump sum awarded to wife based on needs, not sharing.
Legal Topics
Ancillary Relief, Financial Provision, Matrimonial Property, Needs Principle, Sharing Principle, Duxbury Calculation, Non Matrimonial Assets, Section 25 Matrimonial Causes Act 1973
Family Law Ancillary Relief Financial Provision Matrimonial Property Needs Principle Sharing Principle Duxbury Calculation Non Matrimonial Assets +1 more

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Parties

AR

Applicant

AR

Respondent

Procedural Posture

Ancillary Relief (financial Remedy) Following Divorce / Final Judgment

Legal Issues

  1. 1 How should the court exercise its discretion in ancillary relief where most wealth is inherited/gifted and non-matrimonial?
  2. 2 Does the sharing principle apply to non-matrimonial property in this case?
  3. 3 What is the appropriate assessment of the wife's housing and income needs?

Ratio Decidendi

Where the wealth is overwhelmingly non-matrimonial and inherited, and there are no factors diminishing the weight of that source, the needs principle is determinative. The sharing principle does not justify an enhanced award. The wife's award should be based on a generous assessment of her needs, including housing and income, with a flexible application of Duxbury to provide some additional financial security, but not to the level of a purchased life annuity.

Court Disposition

Application granted in part; lump sum awarded to wife based on needs, not sharing.

Orders

  • Husband to pay wife a lump sum of £3.3 million, calculated as £1.1 million for housing and £3.2 million for income fund (less wife's own assets of £1 million).