BD v FD (No 2) (Application of the Principle of Need)

BD v FD (No 2) (Application of the Principle of Need)

The wife's financial remedy is determined by the principle of need, not sharing, given the husband's wealth is inherited and not marital property. Her housing and income needs are assessed by reference to the marital standard of living, with some allowance for increased expenditure as children age, but not at the level claimed. An add-back is applied for profligate expenditure. The award is £8.8 million, reflecting fair provision for her needs for life.

Parties
Applicant: BD; Respondent: FD
Jurisdiction
England and Wales
Judgment Date
17 March 2016
Procedural Posture
Financial Remedy Application / Final Judgment
Outcome
Application granted in part; financial remedy awarded based on needs.
Legal Topics
Financial Remedies, Matrimonial Property, Needs Principle, Inherited Wealth, Child Maintenance
Family Law Financial Remedies Matrimonial Property Needs Principle Inherited Wealth Child Maintenance

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Parties

BD

Applicant

FD

Respondent

Procedural Posture

Financial Remedy Application / Final Judgment

Legal Issues

  1. 1 Assessment of wife's financial needs
  2. 2 Application of needs versus sharing principle
  3. 3 Impact of inherited wealth on financial remedy

Ratio Decidendi

The wife's financial remedy is determined by the principle of need, not sharing, given the husband's wealth is inherited and not marital property. Her housing and income needs are assessed by reference to the marital standard of living, with some allowance for increased expenditure as children age, but not at the level claimed. An add-back is applied for profligate expenditure. The award is £8.8 million, reflecting fair provision for her needs for life.

Court Disposition

Application granted in part; financial remedy awarded based on needs.

Orders

  • Wife awarded £8.8 million lump sum for housing and income needs for life.
  • Child maintenance ordered at £15,000 per year per child until completion of tertiary education.