WM v HM

WM v HM

The court held that a linear time apportionment is the fairest method to determine the non-matrimonial value of the business at the start of the relationship, resulting in £44,490,350 as non-matrimonial and £176,634,650 as matrimonial. The husband's contributions, while significant, did not meet the threshold for special contribution. The marital assets, net of taxes and costs, should be divided equally, with the wife receiving a combination of property, cash, and an increased shareholding in the business, part of which is deferred to allow the husband to continue operating the business.

Parties
Applicant: WM; Respondent: HM
Jurisdiction
England and Wales
Judgment Date
09 May 2017
Procedural Posture
Divorce Financial Remedy / Final Judgment
Outcome
Decree for equal division of marital assets; no special contribution found; clean break upon payment.
Legal Topics
Division of Matrimonial Assets, Non Matrimonial Property, Special Contribution, Clean Break, Valuation of Business Assets, Deferred Lump Sum Payments
Family Law Division of Matrimonial Assets Non Matrimonial Property Special Contribution Clean Break Valuation of Business Assets Deferred Lump Sum Payments

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Parties

WM

Applicant

HM

Respondent

Procedural Posture

Divorce Financial Remedy / Final Judgment

Legal Issues

  1. 1 How should the value of a business founded before marriage be apportioned between matrimonial and non-matrimonial property?
  2. 2 Does the husband's contribution justify a departure from equality (special contribution)?
  3. 3 What is the fair method for division and payment of assets, including deferred payments and share transfers?

Ratio Decidendi

The court held that a linear time apportionment is the fairest method to determine the non-matrimonial value of the business at the start of the relationship, resulting in £44,490,350 as non-matrimonial and £176,634,650 as matrimonial. The husband's contributions, while significant, did not meet the threshold for special contribution. The marital assets, net of taxes and costs, should be divided equally, with the wife receiving a combination of property, cash, and an increased shareholding in the business, part of which is deferred to allow the husband to continue operating the business.

Court Disposition

Decree for equal division of marital assets; no special contribution found; clean break upon payment.

Orders

  • Wife to receive Hampshire House, Kings Rd, Teignmouth, specified bank accounts, £184,000 pension, and £40 million from declared dividend (with £20 million deferred for up to two years, secured by charge over husband's shares).
  • Wife's shareholding in XG to increase from 1% to 17.5% upon full payment of deferred lump sum.