Landmark ‘Divorce’ Settlement in Civil Partnership Breakdown
For the first time the Court of Appeal has adjusted a settlement between two men following a civil partnership breakdown.
Originally Mrs Justice Parker ruled that Mr Donald Gallagher should be awarded a £1.7m ‘divorce’ settlement. However, three Appeal Court judges reduced this sum by more than £250,000.
The parties entered in to their relationship from two very different financial positions. Mr Lawrence’s counsel said that Mr Lawrence’s £2.4m London flat should not have been included in the partnership ‘pool’ of assets and described such a decision as “flawed and bizarre.”
Mrs Justice Parker originally included the London flat and a five – bedroom country home worth £900,000 in the ‘pool’ of partnership assets. Mr Lawrence’s counsel argued that Mr Lawrence had always owned the flat even before he had entered in to a relationship with Mr Gallagher.
Lord Justice Thorpe allowed the appeal in part and said that taking the London property out of the ‘pool’ of partnership assets all together was quite “unrealistic.” He stated: “although this is a Civil Partnership and not a Marriage the same rules apply.”
Lord Justice Thorpe assessed the parties needs and stated that each party of course needed a property of their own. Mr Lawrence kept the London Flat as it pre dated the relationship and was deemed necessary for his work. Mr Gallagher was awarded the country home, as he would have the ability to use the property as a Bed and Breakfast and earn some income.
It was also necessary to consider what funds were required for both parties to “live comfortably in their own homes.” Mr Lawrence was considered to be self-sufficient based on his earnings and pension.
Lord Justice Thorpe stated that there was no rationality in Mrs Justice Parker’s decision to give Mr Gallagher a lump sum of £577,778 and suggested a fairer figure of £350,000.
Mr Gallagher’s counsel argued that Mr Gallagher played the “major domestic and home making role” in the partnership. He said that his client not only maintained the home but also helped to create a home in the London flat and “significantly enhanced the couple’s enjoyment of the flat as their mutual home.”
Despite this argument by Mr Gallagher’s counsel Mr Lawrence successfully appealed the order made by Mrs Justice Parker, ultimately reducing the amount he has to pay to his ex partner.
Here at Lewis Rodgers Solicitors our family solicitors deal with numerous areas of law including finances in divorce. Contact us to make an appointment today at our: Winsford Office on: 01606 861 858 or our Macclesfield office.