Breaking Up In Britain: Are The UK's Divorce Laws Better for Women?

Breaking Up In Britain: Are The UK's Divorce Laws Better for Women?

London has been named “the divorce capital of the world” and not without good reason. When it comes to huge settlements following short marriages, court cases with countless celebrities and wives digging for riches, this city must take the crown. Here the Courts recognise that a wife’s contribution as mother and homemaker is equal to the hardworking businessman who makes millions.

No doubt you will have read about the well publicised pay-outs of Heather Mills McCartney (who received £24 million pounds following a marriage of some five years to Paul McCartney) and Guy Ritchie (who was reported to have received about £50 million in cash and property following a marriage of eight years to Madonna). Before that, the highest divorce payout awarded by a British court was £48 million in 2006 to Beverley Charman, who was married for 28 years to the insurance magnate John Charman. The sum was based on the couple's total assets of £131 million.

However, the vast majority of divorces in this county occur among working/ middle class couples who are then faced with the difficult task of trying to divide the assets from one household into two.

Breaking up in Britain

Regardless of the amount of a family’s income or capital, the divorce laws in England differ from those in the US. As a divorce lawyer in London, used to dealing with all types of difficult cases and highly fraught battles, I am writing this piece to help provide an insight into the legal ramifications of getting divorced here.

The divorce laws in this country just might suit those of you stay-at-home Mums who gave up a career to look after the children and the household as a backbone to your husbands who have become financially successful in their chosen professions.

For instance, a highly publicised case in 2000 changed the legal landscape for divorcing couples in this country. The Court decided that in the future the outcome for divorcing couples should be balanced against a “yardstick of equality”. Therefore, in most marriages, regardless of length and regardless of each party’s contribution to the finances, the Court is under a duty to consider equality as a starting point on divorce and that equal division of assets should apply unless there is good reason to depart from it.

This principle has helped to prevent discrimination against those Mums who stay at home looking after children rather than go out to work, despite any non-financial contribution to the marriage. Even those assets created independently by your high earning husbands or inherited by them may be taken into account and divided equally on divorce.

In 2006, the Courts agreed that there should be three “strands” for achieving fairness and for giving “each party an equal start on the road to independent living” — which are meeting needs, providing compensation and, finally, sharing the fruits of the marriage partnership. In this way, English law may take into account your valued contribution and the potential “financial loss” you may have suffered by sacrificing your own career for the good of the family.

Furthermore, the law in this country provides (under the Matrimonial Causes Act 1973) that wives (as well as husbands) may make various claims on divorce — to spousal maintenance (the English word for alimony), maintenance for children, a cash payment (in other words, a lump sum), a property, and also a share of any pension.

Are English divorce laws right for you?

Many people find the prospect of getting divorced in this country daunting, especially since the legal costs can be high. Furthermore, to make full disclosure of your assets which will be scrutinised and questioned along the way, is not a task to be embarked upon lightly. For those individuals with a high net worth who are anxious, under any circumstances, to safeguard their savings and ring fence their riches, divorcing across the pond can be a risky venture.

However, if you believe that the divorce laws in England might give you a larger “bite of the cherry” than in the US, there are certain criteria you need to meet in order to start the ball rolling here. First, you must be living here for a period of one year. Alternatively, you must be domiciled here (meaning that you pay your taxes here and have given up your residence abroad) and residing here for a period of 6 months. If you own property or assets in England or Wales, these could be supporting factors. Therefore, it may well be that an extended holiday abroad could lead to you being in a position to obtain a divorce in this country rather than in America if you convince the Court that you have given up your residence abroad.

On a general note, whilst England may not be a jurisdiction open to you to divorce or appropriate for your circumstances, it is important and worthwhile to ensure that you have considered what other jurisdictions may be available before you take steps to start your divorce in the US. Being forewarned is forearmed and knowledge of your possible entitlement abroad could make all the difference to your final settlement.