Future-Proof Your Divorce: The Wyatt v Vince Warning.
Imagine, turning a pioneering idea into £57m empire. Winning awards, creating history, and all odds against you. Now imagine your ex-spouse, of nearly two-decades, emerging after your divorce to demand £1.9m of your hard-earned success. Sounds impossible? The landmark case of Wyatt v Vince [2015] proves otherwise, highlighting a crucial warning about divorce and financial claims.
The Case of Wyatt v Vince[2015]
Background
Dale Vince and Kathleen Wyatt married in 1981, embracing a new age traveller lifestyle. They had a son together, and Vince treated Wyatt’s daughter from a previous relationship as his own. Their marriage lasted three years, with their divorce being grated in 1992. At the time of the divorce neither party had substantial or significant assets, therefore they chose not to proceed with obtaining a formal financial order. Instead, they simply parted ways once in receipt of the Final Order Divorce papers.
Post-divorce, their lives took a change. Wyatt proceeded to raise the children under significant financial strain. Meanwhile, Vince founded Ecotricity, a pioneering green energy company. The company’s value grew to at least £57m, and consequently, Vince became a multimillionaire. In 2011, almost 20 years after the date of divorce, Wyatt made an application to claim against Vince for financial provision. Wyatt’s application requested a total of £1.9m from Vince.
The Court’s Decision
Despite the 19 year delay, the Court unanimously granted her appeal, allowing Wyatt to pursue the financial claim. The Court considered both Wyatt and Vince’s involvement to the welfare of their family, including looking after the home or caring for the family both during and after the marriage.
The financial claim was ultimately settled outside of court. With consideration as to the change in financial circumstances post-divorce, in conjunction with the financial circumstances at the time of divorce, the case settled at £300,000 in favour of Wyatt.
Why Does This Matter to You
The Legal Principle
In England and Wales, only a court-approved financial order can formally sever financial ties between spouses. Many couples still decide against pursuing formal financial orders. Instead, choosing to resolve matters through other means, including direct negotiation, inter-solicitor negotiation or mediation. No matter how final agreements are found, the formalisation, generally a legally binding Consent Order, is crucial. Without one, you may beat risk of a future financial claim from a former partner.
The Wyatt v Vince [2015] case indicates this is regardless of:
· Time elapsed since divorced;
· Whether you had any assets during the marriage;
· If your wealth was accumulated after separation.
Protecting Your Future
Why You Need a Financial Order
It is a common misconception that matrimonial financial ties automatically end upon divorce. This is not generally the case. In most cases, it is strongly encouraged to obtain a Clean Break, whether this be via formal financial arrangements through Court or through a Consent Order. Without a clean break, or any alternate legally binding Order, it may be that you are left open to receive a claim from your former spouse long after the divorce is finalised. A legal divorce is the end of the marriage, but not necessarily the end of ties and responsibilities.
Common Questions
“We don’t have any assets – do we still need a financial order?”
Yes, as demonstrated through Wyatt v Vince [2015], it is encouraged to protect any future assets by way of a Clean Break.
“We’ve agreed everything informally, is that not enough?”
No, an informal agreement is not legally binding. A legally binding Order may better protect against any future claims.
“It was years ago, is it too late?”
Better to secure your finances sooner rather than later. While it is never too late, remarriage, death and other circumstances may deem any application inappropriate and/or rejected.
Conclusion
Wyatt v Vince is an important reminder that financial obligations between divorced spouses are not, in most cases, automatically or formally severed until a formal Order is granted. Whether you are currently going through a divorce, or divorced years ago, taking action now could save significant mental and financial stress in the future. If you have any further questions, contact our family law specialist at Acumen Law today.
