ANCILLARY RELIEF: 'large degree of ambiguity' about what couples can expect after split


Family practitioners have backed Sir Mark Potter's call for reform of ancilliary relief laws during the judgment in which he upheld the largest sum awarded to a wife in a big-money divorce.



Dismissing the appeal by John Charman against the decision to award his wife Beverly Charman £48 million of the £131 million assets, the President of the Family Division said the law was in need of modernisation and called on the Law Commission to review section 25 of the Matrimonial Causes Act 1973. Sir Mark also signalled his support for the legally binding prenuptial agreements.



Upholding the decision of Mr Justice Coleridge, the Court of Appeal held that trust assets should be treated as part of the matrimonial property. The court said property should be shared in equal proportions unless there was a good reason to depart from equality, and confirmed that special contribution remained a reason for departing from an equal division of assets.



Manches partner Helen Ward, who represented Mrs Charman, said: 'This is a significant judgment and brings welcome clarity to a number of important aspects of the law relating to the distribution of assets on divorce. The solicitors' profession will positively embrace the court's suggestion for a broad review and reform in this area to create modern law reflecting today's modern society.'



But Mark Harper, the partner at Withers who represented Mr Charman, said the ruling had not clarified the law and would lead to more successful people fighting to avoid divorce in London and clogging up the courts.



Jane McCulloch, chairwoman of family law group Resolution, said the case highlighted the lack of clarity in the law. 'The uncertainty created by a number of high-profile and sometimes contradictory judgments around financial settlement has introduced a large degree of ambiguity into what divorcing couples can expect to pay and receive,' she said.



Mr Charman was refused permission to go to the House of Lords, but may apply directly.



Catherine Baksi