Ex-wife won’t share in husband’s future earnings

Many men fear the odds are stacked against them when it comes to divorce but now a new High Court ruling has shifted the balance a little in their favour – at least in certain circumstances.

It follows the case of a couple who divorced after 20 years of marriage. The husband was a high-earning City banker; the wife was a teacher but took long breaks away from her career to look after their four children and accompany her husband when he was obliged to work abroad.

His career flourished and by the time the marriage broke up, the couple had amassed considerable wealth. She was awarded £13m, roughly half the couple’s joint assets, but also asked for a further £1.5m as a share of the husband’s future earnings.

However, the judge refused to make the award saying that the wife had been given an adequate lump sum to ensure a clean break and she should not expect a share of money he might earn in the future. Mr Justice Charles said the wife had been a teacher and so had not given up a career that would have been likely to provide substantial income.
He added that her contribution to his future earning potential was small because his high level of income was primarily based “on his talents, hard work and good fortune in pursuing his career.”

At first glance, the ruling may seem to be out step with the case last year of Kenneth McFarlane who was ordered to pay his ex-wife £250,000 a year for life. The key difference, however, is that the McFarlanes had not accumulated enough wealth to ensure a clean break.

Mr Justice Charles said that in this latest case, the wife’s £13m half share of the couple’s total assets at the time of separation would enable her to live in great comfort for the rest of her life and so there was no reason for her to share in her husband’s future earnings.

Each couple’s circumstances are different, of course, but this latest High Court ruling should go some way to allaying men’s fears that ex-wives will be given unrealistic or unjustified settlements by the courts.

We have many years experience representing both husbands and wives during divorce proceedings. Please contact Catherine Wenborn if you would like more details.