#4917 - High Net Worth Financial Orders - Family Law

High Net Worth Financial Orders 1) How HNW cases differ to a general financial order case 1) Needs is not such an issue 2) There is more likely to be a distinction between marital and non-marital assets 3) Pre-Nupital Agreements are used in HNW 4) Compensation 5) Contribution / Special Contribution 6) Clean break more likely to be achieved 7) Capitalisation of periodical payments to achieve clean break 1) Compile a Schedule of Assets and Liabilities Where can the financial information be found? a) The scenario b) The two parties' Form E's 2) Compile a Schedule of Income and Outgoings Where can the financial information be found? a) The scenario b) The two parties' Form E's 3) The factors the court will consider to decide an appropriate package 1) All the circumstances of the case The court must have regard to all the circumstances of the case - s.25(1) MCA 1973 2) The first consideration - Welfare of the child The court will consider all the circumstances but the first consideration should be the welfare of any child of the family under the age of 18 - s.25(1) MCA 1973 3) s.25(2) MCA 1973 Factors 1) Income, earning capacity, property (assets) and resources of both parties - s.25(2)(a) MCA 1973 a) Consider whether property will be divided into matrimonial and non-matrimonial property. Miller / MacFarlane - Established three principles: 1) The principle of equal division of matrimonial property may not apply to non-matrimonial property with the same force, especially where needs have been met 2) When deciding whether property falls into the matrimonial pot the court should consider these factors: a) Needs of both parties b) Duration of the marriage c) Mingling of assets d) Fairness 3) Divide the assets into matrimonial and non-matrimonial assets * Non-matrimonial assets will either belong solely to the owning party or the principle of equality will simply be less vigorously applied b) Potential non-marital property can be divided into four categories 1) Pre-marital assets 2) Property acquired by gift or inheritance 3) Assets acquired post separation due to one party's efforts 4) Business or investment assets generated by one party c) Inherited assets Rossi v Rossi * Again duration of the marriage, mingling and needs are relevant factors KvL * Court awarded husband PS5 million from shares of PS59 million * Equality can be departed from given the exceptional contribution in inherited wealth brought to the marriage by the wife