Menu
 
01525 378 177
 

Request a Brochure


* required
Send my newsletter by:
 

Request Your Free Life Organiser



* required
Send my newsletter by:
 

Sign Up To Our Quarterly Newsletter



* required
Send my newsletter by:
 

Client Stories

Osborne Morris & Morgan > Case Studies > Complex Divorce Settlement reached with assistance from Osborne Morris & Morgan

Complex Divorce Settlement reached with assistance from Osborne Morris & Morgan


Posted on 13 Feb 2018
 

After suffering catastrophic brain damage in a motorcycle accident, our client Paul Jones* £800,000 compensation award was placed in a Personal Injury Trust. When his wife subsequently petitioned for divorce, the arrangements were far from straightforward, particularly as the couple also had three young children.

* not his real name

Background


motorcycle-pi-case-studyAt the time of the case coming to court, Mr and Mrs Jones were aged 36 and 38 respectively, and had been married for six years. They had three children, all under the age of 5.

Osborne Morris & Morgan were asked to advise Mr Jones on his position should the marriage break down, as his wife had indicated that she may wish to seek a divorce against him.

The situation was a complex one. Earlier during the course of the marriage, Mr Jones had suffered catastrophic brain damage as a result of a serious motorcycle accident. Subsequent litigation had resulted in a compensation claim and award of £800,000, which was placed into a Personal Injury Trust for the benefit of Mr Jones.

When Mrs Jones issued divorce proceedings against our client, there was a great deal to be negotiated and agreed.

Current needs


The matrimonial assets needed to be divided so that both parties’ income and capital needs could be adequately met.

Both parties agreed to undergo mutual financial disclosure and Form E (details of each party’s financial positions) were exchanged.

Mrs Jones needs related to being able to house herself and the three children with a weakened income position until such time as the children entered school.

Mr Jones also needed to be housed in a property which would allow him to stay in contact with his children, but also had a significantly weaker earning capacity due to his head injury.

It was further envisaged that Mr Jones would at a future stage in his life need to fund a Case Manager to assist him in daily chores, once his parents were no longer able to fulfil that role.

The marital assets


The marital assets consisted of:

  • Equity in the former marital home of approximately £240,000
  • Mr Jones’s Personal Injury Trust assets, worth approximately £500,000 (the balance having been used to purchase the former marital home itself)
  • Each party’s pension assets:
    • Mrs Jones’s (the Petitioner’s) pension value was £40,000
    • Mr Jones’s (the Respondent’s) pension value was £8,000

Further to the assets, each party had restricted working capacities. The Respondent, due to his head injury, received approximately £1,000 per month, while the Petitioner, due to a gap in her career from having the children and childcare arrangements, received approximately £1,500 per month.

The resolution


Under current law, the treatment of personal injury damages are not protected from division between the parties in cases of divorce. The potential was therefore that all assets could be equally split, despite Mr Jones having additional long-term capital and income needs that were distinctly more difficult than those of the Petitioner.

After a long period of negotiation, the parties agreed that the Petitioner’s imminent need – as a result of her primary role in the care of the children – was for a property in which they could all reside and, due to her limited income ability, on an ongoing basis.

It was agreed therefore that the former marital home would be transferred into Mrs Jones’s sole name with her keeping all of the equity. In exchange, she paid to Mr Jones a lump sum of approximately £50,000, representing approximately one third of the equity in the property being returned back into his estate.

Mr Jones retained his Trust asset in its entirety, which would be sufficient to meet his needs. An agreement based on the Child Maintenance Agency calculation was also reached between the parties and, subject to these agreements, there was a full clean break.

This was agreed by way of a court-approved Consent Order and was made legally binding.

Contact Us

Contact a member of the team today

01525 378 177

Sign up for our free quarterly newsletter and you will receive the latest news and information about up-and-coming events.

OMM Solicitors Brochure

Our brochure introduces the partners of the firm, the company’s core values and details the service we offer.

Digital Legacy Life Organiser

Give your family a helping hand and protect your digital legacy with our Life Organiser

Accreditations & Awards



Osborne Morris & Morgan have double the reason to celebrate after winning, not one, but two awards at this year’s SME Bedfordshire Business Awards.

The firm were delighted to receive the ‘Leighton Buzzard Business of the Year’ and also the ‘Training & Development’ award for their continuous commitment to investing in their employees.

 
Headway Corporate Supporter Lexcel Law Society Accredited Certainty the National Will Register
Law Society Conveyancing Quality Accredited
Clinical Negligence Accredited - The Law Society
Bedfordshire Businesswomen Finalist 2018
riliance excellence in compliance resolution logo
Bedfordshire Business Enterprise Awards Winner
Top Ranked Chambers UK 2015
Top Ranked Leading Firm - Chambers UK
apil logo
AVMA logo Cyber Essentials logo