Wyatt v Vince
Many divorcing couples particularly those with minimal or no assets or income are reluctant to incur the expense of obtaining a financial order, relying on an informal agreement between them and their former spouse not to bring any further claims against each other in the future.
Of course circumstances change and it is very important to record any agreement into a legally binding financial order, even if it is simply to formalise an order dismissing future claims between them. Otherwise they could be facing potentially years of litigation, financial uncertainty and exorbitant legal fees.
This recent case highlights the importance of taking advice regarding and dealing with the financial aspects of the divorce, when dissolving the marriage.
Kathleen Wyatt (wife) and Dale Vince (husband) married on 18 December 1981, there was one child from the wife’s previous relationship, Emily (who was treated as part of the family) and also one child from the marriage, Dale. They led a new age traveller lifestyle during their marriage and had no assets or income.
They separated in 1984. The children resided with the wife, who was in receipt of state benefits. The husband provided no financial support for the children as he continued with his new age traveller lifestyle and had no income.
They divorced on 26 October 1992.
In 1993 the wife commenced a new relationship and had two children with her new partner and continued to have a modest lifestyle.
In 1995 (3 years after the divorce and 11 years since the separation) the husband formed a green energy wind turbine business generating electricity from recycled materials, Ecotricity, which is now worth at least £57 million and he subsequently became a multi-millionaire.
The court file in relation to the divorce was mislaid and there was no evidence that a financial order had been made alongside the divorce.
On 19 May 2011 (19 years after the divorce and 27 years since separation) the wife applied to the Court for a financial order against the husband. This was initially struck out, then appealed by the wife to the High Court. Then appealed by the husband to the Court of Appeal. The wife then appealed to the Supreme Court, who on 11th March 2015 (23 years after the divorce and 31 years since separation) gave the wife permission to continue with her application but confirmed that it may not be for the £1.9 million lump sum payment that she was seeking, confirming that she faced “formidable difficulties”.
In October 2015 this matter was listed for a Financial Dispute Resolution Appointment where they were provided with a non binding adjudication from a Judge in an attempt to encourage settlement, which was not achieved. However, on 24th March 2016 the terms of settlement were agreed for a lump sum payment to the wife of £300 000 in addition to £325 000 towards her legal fees (as a result of her successful appeals and costs awards).
