Limited Maintenance Payments: Judges Clamp Down on ‘Meal Ticket’ Divorces

Divorce lawyers are seeing a significant increase in cases in which family courts agree that former wives receive maintenance from their ex-husband only for a limited period rather than a traditional indefinite settlement. Lawyers say that courts are now more reluctant to see divorce awards as a source of income for life – particularly for couples who have more modest assets to divide and where a woman could return to work.

Former wife told she has no right to be supported for life

In 2015, an Appeal Court judge told the former wife of a millionaire horse surgeon to seek employment, advising her that she has no right to expect “an income for life” at her ex-husband’s expense.

Lord Justice Pitchford rejected a challenge by mother-of-two Tracey Wright to a previous decision by a family court judge to cut her future maintenance. Ms Wright, a former legal secretary and riding instructor, opted not to be a working mother when she split with her husband Ian in 2008 after 11 years of marriage.

On divorcing, the couple’s £1.3m home was ordered to be sold and the proceeds divided. Ms Wright came away with a £450,000 mortgage-free house and stabling for her horse and her daughters’ ponies. Her former husband, who was also ordered to pay £75,000-a-year in maintenance and school fees, went to the High Court to seek a cut in his payments. He said that it was unfair that he be expected to support his ex-wife indefinitely, even after his retirement, while she made “no effort whatsoever to seek work.” The High Court judge agreed, ordered that Ms Wright’s personal maintenance payments must cease, with a tailing-off in the years leading up to Mr Wright’s retirement, and urged that she go out to work to support herself.

Lord Justice Pitchford rejected Ms Wright’s challenge to the High Court’s decision to cut her future maintenance and said that it is now “imperative that the wife go out to work and support herself”.

Former top model wins £53m divorce settlement

Although the Wright case has been described as a landmark that will likely have wider ramifications for the ex-partners of wealthy spouses, the English court system still awards generous settlements to former wives in divorce cases.

Former Pirelli calendar model Christina Estrada was awarded a £53m lump sum after a divorce battle with her billionaire ex-husband.

Ms Estrada had asked for £196m from Saudi businessman Sheikh Walid Juffali to meet her “needs” – including £1m a year on clothes. The eventual total settlement, which takes into account her own assets, is about £75m. Although Ms Estrada’s lawyers said she had received the largest “needs award” ever made by an English court, larger total payouts have in fact been made: In 2014, a court said Jamie Cooper-Hohn should receive £337m in her divorce from London financier Sir Chris Hohn, and three years earlier, the late Russian oligarch Boris Berezovsky’s former wife Galina Besharova reportedly agreed to accept between £165m and £220m as part of a settlement.

This case will confirm London’s reputation as the divorce capital of the world, where high net worth ex-wives can be confident of winning more generous settlements as well as speedy justice for those who can afford large legal fees.

Buckinghamshire’s family law experts

If you would like to discuss any aspect of family law, are considering divorce proceedings or a trial separation, or want to draw up a pre or post-nuptial agreement, call us in absolute confidence on 01494 790058 or 01494 790047. Alternatively, email us at familylaw@ibblaw.co.uk.

You may also be interested in

Older Couples Make Up Over 50% of Divorces in England and Wales

Women More Likely to Seek Divorce Due to a Lack of Gender Equality in their Relationship