The rise and rise of the gold digger

7/1/2010

David Pickering, family partner at DWF LLP takes a closer look at the spouses ‘cashing in' on changes in the law:

"Lies, deceit, arguments and accusations, not just common symptoms of a marriage under strain but a familiar sight in divorce courts across the country. There's no getting around it, divorce is often very emotional and when there are significant sums of money at stake it can turn a stressful event into a nightmare.

"Flick through any tabloid newspaper or glossy magazine and it's more likely to be the end of a marriage dominating the headlines than one just beginning. Look behind the celebrity façade and you'll find many ordinary but successful businessmen and women in the predicament of dealing with a divorce with high value assets to be considered.

"Every year DWF works on a variety of cases for high net-worth individuals whose marriage has come to an end, this can range from assets of half a million, up to £100 million. In these situations, the determination by negotiation or order of the Court of any settlement figure can sometimes last months, requiring skill and expertise to resolve complex financial issues'.

"With a rise in the number of shorter marriages breaking down, businessmen and women in the country are falling victim to developments in marital law. The advent of ‘marital acquest' means that all assets acquired during marriage or which grow in value during the marriage, including business and investment assets, as well as the matrimonial home are to be divided. The law now appears to give less weight to the length of marriage when settling divorce claims which seems to have led to a number of marriages resulting in divorce after only a short time. Such a trend may raise a few eyebrows however, with a major concern being that this emphasis in the law on the "marital acquest" may encourage some of the ‘gold diggers' out there to seek out more affluent individuals for a quick gain.

"Whatever the motive, divorce has become a prominent part of British life. In 2008 over 136,000 couples filed for divorce in the UK. As we slowly pull out of recession this is a figure we can expect to rise, as the value of assets gradually recovers and people feel more financially ‘ready' to divorce."

ENDS

Picture caption: David Pickering, partner, family, DWF LLP

Notes to editors

DWF LLP is one of the fastest growing law firms in the UK. With over 1,100 people based in Leeds, Liverpool, London, Manchester and Preston, DWF provides a range of services grouped in the following sectors:

Corporate

Finance & Restructuring

Litigation

Real Estate

People

Insurance

Private Client

Media enquiries to:

Fiona Whyatt or Alex Henshall

Bell Pottinger North

Tel: 01625 506444 or 07810 795053 / 07920 252 464

Email: fwhyatt@bellpottingernorth.co.uk or ahenshall@bellpottingernorth.co.uk