Crazy Money Expenditure – Money v Sense
Picture this – a Husband and Wife married for 15 years, with two children, aged 16 and 17 are going through a divorce. Their asset pot totals £2.9 million. In the usual course of affairs this would be a decent size matrimonial pot to divide between the parties to meet their respective needs. But this particular case made it to the press for all the wrong reasons.
Staggeringly, over £920,000 was spent on legal costs! This is completely disproportionate given the total value of the matrimonial assets and I have to say absolutely ludicrous. So basically, what the parties had spent the duration of their marriage building up and establishing, it took them just under a year to throw away a third of their assets.
The settlement itself was an eye opener as the Judge decided to compensate the wife, whose lawyers cost a lot less than her husband’s legal team – by giving her a lump sum in addition to her settlement, in order to create some parity between
the parties. So, whilst you may be working all the hours to establish your business, or to maintain your senior position, in order to earn a good income to support the divided family unit, if you choose to employ an exclusive legal team, you could be penalised for the money you worked so hard to earn and chose to spend on your selected legal team. Sounds absolutely crazy, doesn’t it?
If you are going through a divorce or even contemplating separation and divorce, it is vital to get matters right from the beginning. Simply taking matters step by step – will not safeguard you – but could place you in difficulty. There is no substitute for effective planning and going through what is undoubtedly the most difficult legal process you are ever likely to be involved in. Choose your legal team carefully: they are supposed to plan and strategise with you. Speak to one of our team and you will be assured that the support you need is right here.
Pinder Reaux & Associates Ltd