SW v TW [2013] ScotCS CSOH_136 (08 July 2013)

SW v TW [2013] ScotCS CSOH_136 (08 July 2013)

The court held that the net value of the matrimonial property should be shared equally, with no additional capital sum for economic advantage/disadvantage as any advantage to the defender from the pursuer's involvement in X Limited was balanced by her own shareholding. The court allowed a 10% deduction from the value of shares transferred to the defender to account for prospective capital gains tax liability, but rejected further deductions for income tax on dividends. The court preferred the pursuer's expert evidence on the value of the matrimonial home and determined the value of the pursuer's shares in X Limited based on a compromise multiplier. The court ordered transfer of the...

Citation
[2013] ScotCS CSOH_136
Parties
Pursuer: SW; Defender: TW
Jurisdiction
Scotland
Judgment Date
08 July 2013
Procedural Posture
Divorce and Financial Provision / Final Judgment After Proof
Outcome
Decree of divorce granted; orders for transfer of assets and payment of capital sum made.
Legal Topics
Divorce, Financial Provision, Matrimonial Property, Valuation of Assets, Capital Gains Tax, Equal Sharing, Economic Advantage/disadvantage
Family Law Divorce Financial Provision Matrimonial Property Valuation of Assets Capital Gains Tax Equal Sharing Economic Advantage/disadvantage

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Parties

SW

Pursuer

TW

Defender

Procedural Posture

Divorce and Financial Provision / Final Judgment After Proof

Legal Issues

  1. 1 What is the fair division of matrimonial property, including business shares and the matrimonial home, upon divorce?
  2. 2 Is either party entitled to additional financial provision for economic advantage/disadvantage under section 9(1)(b) of the Family Law (Scotland) Act 1985?
  3. 3 Should adjustments be made for prospective tax liabilities in the division of assets?

Ratio Decidendi

The court held that the net value of the matrimonial property should be shared equally, with no additional capital sum for economic advantage/disadvantage as any advantage to the defender from the pursuer's involvement in X Limited was balanced by her own shareholding. The court allowed a 10% deduction from the value of shares transferred to the defender to account for prospective capital gains tax liability, but rejected further deductions for income tax on dividends. The court preferred the pursuer's expert evidence on the value of the matrimonial home and determined the value of the pursuer's shares in X Limited based on a compromise multiplier. The court ordered transfer of the...

Court Disposition

Decree of divorce granted; orders for transfer of assets and payment of capital sum made.

Orders

  • Decree of divorce granted on ground of irretrievable breakdown due to defender's behaviour.
  • Transfer of defender's one half share of the former matrimonial home to the pursuer.