Substantial Divorce Settlement Secured in Complex Financial Case

Director and Family Law Solicitor John Clegg represented a wife in a complex and high net worth divorce, which included financial remedy proceedings, following the breakdown of a marriage lasting more than 60 years.

Both were retired and had built up significant assets during their marriage, including the family home, and several other properties and substantial savings. They disagreed over how everything should be divided and how much income each of them would have to live on after the divorce.

The husband’s position was that, as the main earner throughout the marriage, he had contributed more to the couple’s wealth and should receive a greater share of their assets. He also wanted to keep the family home rather than sell or divide it.

John Clegg advised the wife on her position and acted on her behalf throughout the financial remedy proceedings.

Dealing With Non-Disclosure and Complex Financial Assets

One of the main challenges John Clegg faced was making sure there was a clear and accurate picture of the couple’s finances.

There were concerns that not everything had initially been disclosed. This included a savings account containing a six figure sum from the sale of an overseas property that was only established following further scrutiny of the husband’s disclosure. There were also concerns about how some of the couple’s assets had been dealt with after they separated.

The couple also disagreed over the value of some of their properties and there were potential tax issues, including Capital Gains Tax, that needed to be considered.

John Clegg worked through these issues to establish the couple’s true financial position before a settlement could be agreed.

Reaching a Settlement at the FDR Hearing

As the couple could not reach an agreement, the case went to court and eventually reached a Financial Dispute Resolution (FDR) hearing.

At the FDR hearing, a settlement was agreed which broadly divided the couple’s assets equally. This included arrangements for properties to be sold so that their value could be divided between them.

John Clegg also secured an immediate lump sum payment for his client to help with her short-term financial needs.

Another important issue was the difference between the couple’s retirement incomes. The husband received considerably more income in retirement, so the settlement included a pension sharing order in his wife’s favour. She also received maintenance while the wider financial arrangements were being put into place.

Overall, the settlement gave John Clegg’s client the financial security she needed to find suitable housing and meet her future needs, while also giving her a retirement income similar to her former husband’s.

What Does This Case Demonstrate?

Dividing finances after a long marriage can be complicated, particularly when a couple owns several properties, has pensions and savings, or there are concerns that some assets have not been disclosed.

In this case, John Clegg dealt with a range of issues including property, pensions, savings, an overseas asset, financial disclosure and potential tax liabilities.

The case also shows why it is important to look at what each person will have to live on after the divorce, rather than focusing only on how property and savings are divided. This can be particularly important when both people are retired, and one has a much higher pension income than the other.

What Happens if Assets Are Not Disclosed During Divorce?

Both people are expected to be open about their finances when sorting out a financial settlement following divorce.

If there are concerns that savings, property or other assets have not been disclosed, further investigation may be needed to understand what is actually available before a fair settlement can be reached.

In this case, John Clegg dealt with an initially undisclosed savings account containing a substantial sum from the sale of an overseas property. This formed part of establishing a clearer picture of the couple’s finances before the case could be settled and indicated the importance of solicitor led scrutiny into the financial affairs of a former partner to ensure all assets can be divided fairly.

How Are Assets Divided After a Long Marriage?

There is no one-size-fits-all approach to dividing assets in a divorce. The outcome will depend on the couple’s individual circumstances.

In this case, the husband argued that because he had been the main earner during the marriage, he had contributed more financially and should therefore receive a larger share of the couple’s assets.

Following a marriage of more than 60 years, the settlement ultimately provided for the couple’s assets to be divided broadly equally. It also addressed the difference between their retirement incomes.

Can Pensions Be Divided as Part of a Divorce Settlement?

Yes, pensions can be an important part of a divorce settlement, particularly when a couple is already retired or approaching retirement.

In this case, the husband had a much higher retirement income. The settlement included a pension sharing order in John Clegg’s client’s favour, helping to give her a retirement income similar to her former husband’s.

Need Advice About Finances Following Divorce?

Sorting out finances after a long marriage can feel overwhelming, particularly when there are properties, savings, pensions and other significant assets to consider.

Our family law team advises on financial settlements following divorce, including cases involving multiple properties, pensions, overseas assets, disagreements over valuations and concerns that assets have not been fully disclosed.

If you are considering divorce or have already separated and are worried about your financial position, contact Howells to speak to our Family Law team.

About John Clegg

John Clegg is a Director and Family Law Solicitor at Howells, advising clients on divorce and complex financial matters following relationship breakdown.

In this case, John Clegg represented the wife throughout a complex financial dispute involving a marriage of more than 60 years, multiple properties, pensions, disputed financial disclosure and tax considerations. He guided his client through financial remedy proceedings and the FDR process, ultimately helping her secure a substantial settlement addressing both her immediate financial needs and longer-term housing and retirement income.