GA v EL (No 2) (Post Separation Accrual)

GA v EL (No 2) (Post Separation Accrual)

A proportionate division of the proceeds of the business is justified, with 42.5% to the Wife and 57.5% to the Husband, reflecting the significant post-separation active contribution of the Husband to the growth in value of X Ltd, the presence of passive growth, market factors, and the Wife's increased domestic contribution. The court rejects a strictly formulaic or equal division, instead applying a 'by and large' approach to achieve fairness in light of the evidence and legal principles.

Parties
Applicant: GA; Respondent: EL
Jurisdiction
England and Wales
Judgment Date
12 September 2023
Procedural Posture
Financial Remedy Application (matrimonial) / Final Judgment
Outcome
Proportionate division of business proceeds: 42.5% to Wife, 57.5% to Husband.
Legal Topics
Financial Remedies, Division of Matrimonial Property, Post Separation Accrual, Matrimonial and Non Matrimonial Property, Contributions During Marriage, Passive and Active Growth, Section 25 Matrimonial Causes Act 1973
Family Law Financial Remedies Division of Matrimonial Property Post Separation Accrual Matrimonial and Non Matrimonial Property Contributions During Marriage Passive and Active Growth Section 25 Matrimonial Causes Act 1973

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Parties

GA

Applicant

EL

Respondent

Procedural Posture

Financial Remedy Application (matrimonial) / Final Judgment

Legal Issues

  1. 1 How should the proceeds of sale of a business started during marriage be divided between spouses after separation?
  2. 2 To what extent is post-separation increase in value of a matrimonial business non-matrimonial property?
  3. 3 What is the appropriate approach to post-separation accrual in financial remedy proceedings?

Ratio Decidendi

A proportionate division of the proceeds of the business is justified, with 42.5% to the Wife and 57.5% to the Husband, reflecting the significant post-separation active contribution of the Husband to the growth in value of X Ltd, the presence of passive growth, market factors, and the Wife's increased domestic contribution. The court rejects a strictly formulaic or equal division, instead applying a 'by and large' approach to achieve fairness in light of the evidence and legal principles.

Court Disposition

Proportionate division of business proceeds: 42.5% to Wife, 57.5% to Husband.

Orders

  • Wife to receive 42.5% of the net receipts across each class of compensation from the sale of X Ltd and dissolution of Y Ltd.
  • Wife to be paid approximately £2.585m promptly to achieve the 42.5% share of net cash receipts to date.