Increase in female breadwinners in the UK and financial settlements

Over the past few years studies have shown more women than ever are the main breadwinners in their families. According to a study undertaken by the Institute for Public Policy Research two million working mothers are the biggest earners in their families and this is a rise of 80% in the last 15 years. With divorce rates increasing many breadwinners are concerned about where they stand when it comes to a financial settlement.

In a recent case, the husband of a successful accountant was awarded spousal maintenance of approximately £50,000 per year along with a lump sum of £300,000 as reported by the London Evening Standard. However, the husband is now seeking to appeal this decision as he was told that the lump sum was to be partly funded by the sale of the former matrimonial home and that his maintenance would be discounted by his earning capacity, which the Judge believed would be £36,000 a year and his maintenance was reduced by that amount. The husband has been granted permission to appeal this ruling and he is seeking to stay in the former matrimonial home and for maintenance payments to be increased to more than £85,000 a year.

The landmark decision of House of Lords in White v White held that financial settlements in big money cases should recognise the role of the partner who has stayed at home and been the primary carer and the contribution that they make to the wellbeing of the family. The Lords said that the objective is to ensure that a financial settlement is fair and that the starting point in such cases should be the principle of equality.

The objective of the court is to enable each spouse to have eventual financial independence. If you are going through a separation you will need to reach an agreement about your finances. Our experienced legal team can advise you of your options and help you to decide what is the best way to proceed. Please contact us on 0161 927 3118 for a free 20 minute consultation.