Co-parenting on Mother’s Day

Posted on 7th March 20247th March 2024 by McAlister Family Law

Co-parenting on Mother’s Day

Whilst Mother’s Day is a special time of year, celebrating the enduring love and connection between mothers and their children, for many families, it can be a difficult day. Here, Charlotte Procter looks at how communication, flexibility and planning can keep the best interest of the Child/ren at heart when Co-parenting on Mother’s Day.

There are now over 2.5 million separated families in the UK and this occasion can especially present practical challenges and emotional complexities for families post-separation.

Research consistently underscores the benefits of children maintaining positive relationships with both parents post-separation. These benefits include improved emotional resilience, academic performance, and overall well-being.

It is important that parents remain focused on what is best for the children and take into consideration their wishes and feelings. It is also important to bear in mind the emotional impact on the child if they were not to see their mother on Mother’s Day, and equally if they were not able to see their father on Father’s Day.

An unamicable breakup can involve emotions and resentment. It is important for parents not to allow these feelings to impact their child’s relationship with their other parent. If a child is aware of hostility between their parents, this can have a negative impact on their relationship with their parents.

Special occasions such as Mother’s Day can often be overlooked by parents when making agreements in relation to contact, and making these agreements can be a big task for parents who are not on amicable terms.

Planning in Advance

It is therefore beneficial that discussions about special occasions are had in advance, allowing arrangements to be made in enough time. Having a clear and agreed plan will benefit the children and remove any uncertainty.

Communication is Key

It is also important that parents maintain open and respectful communication whilst making these arrangements. Co-parenting apps, such as talking parents, can assist parents in agreeing contact arrangements for the children.

Remain Flexible

Parents will need to remain flexible with the arrangements made and ensure they remain child focused as changes may need to be made to these arrangements as the children get older.

It may be that the parents already have an agreement in place and Mother’s Day may fall on a day when the child is meant to be with their father. It may therefore be necessary for parents to swap or change weekends to allow the child to spend time with their mother on Mother’s Day, and equally for them to spend time with their father on Father’s Day.

These arrangements can be even more difficult for LGBTQ families as they may need to consider whether to split the day or alternate years.

Encouragement

It is important for parents to support their children in expressing their love and appreciation for their other parent on special occasions, and if they are able to, to help them plan thoughtful gestures or gifts.

Another important consideration is ensuring that children feel like they have the endorsement of the other parent to have a good time, to enable them to make positive memories on important special occasions like Mother’s Day.

Other Options Available

If parents cannot reach an agreement between themselves, going to mediation may be useful. This is a cheaper alternative than going to court and the mediators can help the parents to reach an agreement.

Another useful option, before considering seeking assistance from the courts, may be to seek advice from a qualified solicitor or legal professional.

However, in situations where an agreement has broken down or cannot be reached, it may be necessary for parents to look to the family to court to help them define the time that the children spend with each parent. The child’s welfare is of paramount importance within the family court and so, as part of the court procedures, the child’s wishes and feeling are taken into account.

Regardless of how parents may feel about one another co-parenting is a collaborative effort. By prioritising open communication and making practical agreements, separated parents can create meaningful Mother’s Day celebrations ensuring their children make positive memories with both parents.

If you need advice on this topic, or any other matters concerning divorce or family law, please get in touch with our team at McAlister Family Law.

A second bite at the cherry- will it get harder after Potanina v Potanin?

Posted on 19th February 2024 by McAlister Family Law

A second bite at the cherry- will it get harder after Potanina v Potanin?

There has long been a (legitimate) practice of parties who have international links choosing a jurisdiction for divorce which suits them best. Often this relates to a particular jurisdiction’s approach to maintenance or specific types of assets, such as inherited, pre-acquired assets and so on. It is commonly known as “forum shopping”. Here, Lisa Brown looks at the ongoing case of Potanina v Potanin and their multi-million-pound separation.

The recent appeal decision in Potanina v Potanin [2023] UKSC 3, however, is an example of something slightly different. Put simply, this is having “another go” in England and Wales if the jurisdiction in which you originally divorced may not have resulted in a favourable financial settlement.

Legal basis

Part III of the Matrimonial and Family Proceedings Act 1984 allows a party to make an application to the family court in England and Wales, even where there has been a divorce and financial settlement elsewhere. In order to do so, there must be a substantial connection with England and Wales and the purpose, per the case of Agbaje, is to alleviate the adverse consequences of no, or no adequate, financial provision being made in a foreign court.

Background to Potanina v Potanin

Both parties in this case were Russian nationals. They met as teenagers and married in Russia in 1983. They had 3 children who were brought up in Russia and they divorced in Russia in 2014. It was only after the dissolution of their marriage that Natalia Potanina moved to London.

In the early days of the marriage, they were not well off but, in the 1990s, Vladimir Potanin became hugely wealthy.

Between 2014 and 2018 there were 5 separate proceedings litigated in the Russian courts, there were also proceeding in the US and Cyprus.

The central issue, in terms of the provision by the Russian courts, was that whilst marital assets were divided equally, this only included assets legally owned by the parties and excluded the various trusts and companies in which the husband held almost all of his wealth.

The result ultimately was that Natalia Potanina received payments to her that she says totalled $41.5m and Vladimir Potanin says totalled $84m- in either case a fraction of what she would have received if all of the beneficially owned assets had been included.

English proceedings

On 8 October 2018 Natalia Potanina issued an application under section 13 of the 1984 Act for leave to apply for financial relief under Part III (on the basis she had been habitually resident here for 1 year).

The application was made without notice by Cohen J on 25 January 2019. Whilst the judge’s strong inclination was to order a hearing on notice to Mr Potanin, he was ultimately persuaded by Leading Counsel not to, and he granted leave.

As the application was granted without notice Mr Potanin had 7 days to apply to set this aside which he duly did. His application was heard by Cohen J on 3 and 4 October who then dismissed the wife’s application commenting that:

“if this claim is allowed to proceed then there is effectively no limit to divorce tourism”

Natalia Potanin then appealed this decision and her appeal was allowed by King LJ on the basis that whilst she felt the way it should have been dealt with was a hearing with both parties present, having made the decision not to do that, there were limitations on the judge’s ability to set aside his original decision which effectively meant that unless the court had been misled or a decisive authority overlooked the application to set aside should be adjourned to be heard with the main application. The initial order granting leave was restored.

The Supreme Court (2 judges dissenting), however, did not feel that the law did/ should presently restrict a judge’s powers on a set aside application in the way described by King LJ. They felt that on a such an application the court should consider whether the application should be set aside because the conditions for leave are not met. They were, however, not critical of the Court of Appeal’s approach in the circumstances and given the procedural history (set out in the judgment).

So where are we now?

The test on an application to set aside leave in these types of cases should be to decide a fresh hearing both sides whether the order should be made or not. It may be there is now procedural reform in respect of these types of application.

The case has been hailed as a “win” for Vladimir Potanin but, for Natalia Potanina, all was not lost as she had also challenged the set aside decision on the basis that:

She has satisfied the test for the granting of leave in any event.
The application shouldn’t be dismissed insofar as the court has jurisdiction under Maintenance Regulation.

These points of appeal have gone back to the Court of Appeal to be decided and so the case goes on….

The court did point out that the facts of this case were probably an unreliable guide for most people given the husband was on of the richest people in the world and the wife already has many millions of US dollars. Put simply, in their case all this litigation and the costs that go with it are worth it in terms of what there is to lose/ gain.

For most people that may not be the case and therefore if the test for leave is effectively to be “harder” it is all the more important to get early advice from a specialist family solicitor with experience in jurisdiction issues.

If you need advice on this topic, or any other matters concerning divorce or family law, please get in touch with our team at McAlister Family Law.

Will Britney Spears be protected by prenup in third divorce?

Posted on 17th August 2023 by McAlister Family Law

I’m getting divorced, do I have to go to Court?

News of Britney Spears’ pending divorce from her third husband, Sam Asghari, has been widely reported in the press. Sadly, only a year after their wedding, their marriage appears to be over, with Sam filing for divorce in Los Angeles. Here, McAlister Family Law’s Divorce and Finance Partner, Fiona Wood, looks at the divorce application and questions if Britney’s prenup will protect her.

It is understood that Sam has asked the court to provide him with “spousal support”, which is maintenance from Britney to meet Sam’s income needs whilst they sort out their divorce, and for her to provide him with money to pay his legal fees.

These applications made by Sam to the US court are the equivalent of making an application for interim maintenance and for a Legal Services Payment Order in England. If one spouse cannot meet their reasonable income needs during the divorce and the other spouse can afford to fund these, a judge can order the wealthier spouse to pay interim maintenance to the other spouse until a financial settlement is reached in their divorce.

It is also possible in England to make an application to court that your spouse provide you with money to fund your ongoing legal fees – known as a Legal Services Payment Order. To make this application successfully you have to show that you cannot afford to fund your own legal fees, you cannot obtain a commercial loan from two lenders to fund your legal fees and that your spouse can afford to pay them.

It is reported that Britney and Sam signed a prenuptial agreement before their wedding, to protect the wealth that Britney accumulated before they married. Under Californian Law the prenuptial agreement is thought to be “ironclad”. However, there is speculation that Sam will try to renegotiate the terms of the prenuptial agreement by threatening to release embarrassing information about Britney.

The law in England regarding prenuptial agreements is different to that in other countries, but they are still an important way of protecting assets if you divorce. Here a prenuptial agreement is not automatically binding if a couple divorce. It is an important factor that the court will take into account when consider a fair financial settlement. The reported cases show that as long as both spouse’s needs can be met, the divorce court is likely to uphold the terms of their prenuptial agreement or if it does not fully uphold it, the presence of the prenuptial agreement will reduce the settlement received by one spouse from what they would have received if no prenuptial agreement had been signed.

If you or someone you know is affected by the issues raised in this blog post, we can provide you with expert legal advice. For more information, please get in touch with our specialist team at hello@mcalisterfamilylaw.co.uk

I’m getting divorced, do I have to go to Court?

Posted on 3rd August 2023 by McAlister Family Law

I’m getting divorced, do I have to go to Court?

Separating from your spouse and getting divorced can be a very difficult and stressful experience for many reasons. You will probably have many questions. Here, Weronika Husejko takes a closer look at one of our most frequently asked questions by those about to go through the divorce process – do I have to go to Court?

In terms of the divorce itself, it is very rare that you will have to attend Court. The new ‘no fault’ divorce procedure does not allow for your spouse to dispute the divorce generally, unless they do not agree that the Court has jurisdiction or that the marriage was valid. This was not the case previously.

Prior to the no fault divorce procedure, the spouse applying for the divorce could apply for a Costs Order against the other spouse, effectively asking the Court that an Order is made that they pay all of their divorce costs. This was another reason for dispute in the past. However, the Court will now only make Costs Orders in divorce proceedings in very rare circumstances. As a result, there are now fewer opportunities for dispute in divorce proceedings, which significantly reduces the chance of any Court attendance.

When you are going through a divorce, the financial element is usually dealt with separately. Many couples are able to negotiate and reach a financial settlement outside of the Court arena e.g. via solicitors, mediation or between themselves. This would usually mean that you do not have to attend Court, unless you are already in Court proceedings at the time that you reach the agreement. When a financial settlement is reached in this way, a Consent Order reflecting your agreement can be submitted to the Court alongside a form which summarises your respective financial positions. The Court will usually consider this type of application on paper in the couple’s absence. They may request that the couple attend Court in rare circumstances, for example, if they have serious concerns regarding the proposed division of the assets.

If one spouse makes an application to the Court for a financial remedy order, (this is an application asking the court to deal with the financial aspects of their divorce), this may result in both spouses having to attend Court. This is the most common reason for Court attendance generally within a divorce. This is because when financial remedy Court proceedings are issued, the case will automatically be listed for a ‘First Appointment’. This is an administrative hearing. However, more frequently these days, the need for this type of hearing is circumvented by the spouses agreeing the ‘directions’ which are needed to move the case forward e.g. the instruction of a surveyor to value a property.

The second hearing is the ‘Financial Dispute Resolution Appointment’. This is a negotiation hearing whereby both spouses will usually attend Court with their legal representatives. If the spouses do not reach an agreement at this hearing, the case will be listed for a ‘Final Hearing’, whereby they will have to attend Court to give evidence. However, this is less common as most cases settle at the negotiation hearing.

The short answer is that you do not necessarily have to attend Court in order to get a divorce. Whilst it is not always possible to avoid Court proceedings, divorcing couples are generally encouraged to try to reach an agreement outside of the Court arena. The best outcome in a divorce is arguably a financial settlement which the couple have agreed, as opposed to a decision which has been imposed upon them by a Judge.

What will I stand to get out of the matrimonial assets?

Posted on 15th December 2022 by McAlister Family Law

What will I stand to get out of the matrimonial assets?

With the United Kingdom on the cusp of a cost-of-living crisis and inflation at record highs, divorcing couples will likely face concerns now more than ever as to how finances are to be treated upon divorce. The biggest question on the minds of divorcing couples is often, ‘what will I stand to get out of the matrimonial assets?’ Here, Aaron Williams looks at what the court considers when looking at how to divide assets on divorce and how they aim to meet the ‘needs’ of each party involved.

So, what does the Court consider when looking at how to divide assets on divorce?

As with many things, there is no one size fits all answer to separating matrimonial assets. The principal aim of the court is to ensure that there is ‘fairness’. Unfortunately, fairness has a broad horizon in the context of family law, and it is largely left to the discretion of the judge as to the outcome of the matter.

The court has a duty to consider all circumstances of a case, this is done so using the principal piece of legislation in divorce; that of the Matrimonial Causes Act 1973, in particular the factors listed in section 25(2)(a) – (h) which can be found here: – https://www.legislation.gov.uk/ukpga/1973/18/section/25

The phrase ‘needs trumps all’ is often cited when assets are limited assets in matrimonial finance cases. The starting point in any matrimonial finance case is to consider an equal division of what has been built up by the parties during the marriage; however, an equal division of assets is not always appropriate in every case to achieve fairness.

So where does that leave separating couples? Well matters largely come down to the circumstances of the parties, the standard of living and the resources available to meet needs. What was enough to meet the needs of one household may not necessarily be enough to meet two.

When settling the matrimonial assets, there is no discrimination between separating couples regarding their respective roles in the relationship. For example, where one party has typically taken the breadwinner role, whilst the other party is the home maker, their roles are to be regarded as equal irrespective of what they have contributed financially.

So, how does the court implement section 25 of the matrimonial causes act?

When assessing how to separate who should have what proportion of the assets of the marriage, the first consideration of the court is that of the needs of any children.

The court then look to meeting the needs of both parties, principally looking to ensure that each person’s housing needs, and income needs are met.

Looking at the matter holistically the court will principally consider the financial needs, obligations, and responsibilities which each of the parties to the marriage have or is likely to have in the foreseeable future (s.25(2)(b) MCA 1973). The court will look at the general resources of the parties and will broadly separate the needs of parties into capital needs and income needs. Capital needs, is often that of significant single capital outlays, purchasing a property, furnishings, replacement car etc. Income needs is that of the day-to-day costs that parties require on a monthly basis to live.

When trying to determine whether the parties have the means to meet these needs, the court will consider Income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future. Commonly referred to as the financial disclosure process, the parties are expected to provide ‘full and frank’ financial disclosure. This includes determining through the assistance of expert evidence or agreeing by consent, the value of any assets owned by the parties, including property, businesses, trust assets, chattels, and pensions. The court will also need to ascertain the parties’ respective incomes, whether they have to capacity to increase their income, receive a bonus etc. The process ultimately aims to ensure that no stone is left unturned.

With all this in consideration the court has a great deal of flexibility to in their approach to financial settlement, which in turn allows the court to ensure (as far as possible) that an outcome reached is fair to both parties, and that neither party nor dependent children are left in need. However, this level of flexibility also carries its own disadvantages as it can be difficult for parties to envisage how a judge may determine the respective parties’ needs.

If you are affected by any of the issues raised here, please get in touch today. We are here to help.

Love is blind… but what if it’s short?

Posted on 16th November 202224th January 2023 by McAlister Family Law

Love is blind… but what if it’s short?

With both Nick Thompson & Danielle Ruhl (Love is Blind season 2) and Mackenzie Scott & Dan Jewett (the ex-wife of Jeff Bezos and her new husband) set to divorce, the topic of short marriages is one that is bound to be on their minds. Both couples married in 2021 and are in the process of bringing their marriages to a legal end. Here, Heather Lucy looks at how the length of a marriage may affect how assets are split upon divorce.

Both of the couples named above are based in the US but those thinking of divorce in England and Wales may be wondering whether the length of their marriage might impact their potential financial settlements on divorce.

There are no hard and fast rules, or formulas, that state how assets should be divided on divorce. The starting point for the court is that the assets should be divided equally, but they will then consider if there are reasons for moving away from an equal split, for example if assets are considered to be non-matrimonial, such as inherited assets or potentially assets acquired before the marriage. The court will also look at whether each person’s needs would be met by an even split. In making their decision, the court looks at the factors in Section 25 of the Matrimonial Causes Act 1973 which is a checklist of what they should consider. The primary consideration will be the welfare of any children of the marriage and other factors include the couple’s ages and the standard of living during the marriage. The latter would likely bode well for Mr Jewett if he were divorcing in England and Wales considering Ms Scott’s circa $34 billion net worth.

One of the factors to be considered under the Section 25 checklist is the length of the marriage. For the purposes of divorce, any time spent living together immediately prior to the marriage is added to the length of time since ‘I do’ to work out the length of the relationship. There are no set definitions of ‘long marriages’ or ‘short marriages’. Marriages of 10 + years may be seen to be in the ‘long marriage’ territory and one lasting 5 years or less is generally seen to fit the description of a short marriage.

Spouses in a long marriage are seen to have more financial interconnectedness and their assets are more likely to be considered ‘mingled’. This means that the court is more likely to be persuaded that an equal division of the assets is the right approach.

If spouses in a short marriage have no children and are both earning, the court may decide that it is fair to move away from splitting their assets down the middle and instead try return each person to the financial position they were in prior to the marriage. This is made even more likely if the couple had kept their finances separate during the marriage. It is also more likely that divorcing spouses will be able to ‘ring-fence’ assets/property they have brought to the marriage which means that they are kept out of the ‘pot’ being divided. The court will also heavily favour a ‘clean break’ if the marriage was short, if there are no young children, as they will want to cut financial ties between the divorcing couple. This means that it is unlikely that regular payments from one person to the other (maintenance) would be ordered, though it is not impossible.

It is important to remember that the court will look at what each person needs. You might have a short marriage and have no children but, if a move away from equality would mean the other person cannot meet this housing and income needs, the court are unlikely to be persuaded that an equal division of the assets is not the right course of action.

The cost-of-living crisis and its impact on financial remedy proceedings

Posted on 20th October 202224th January 2023 by McAlister Family Law

The cost-of-living crisis and its impact on financial remedy proceedings

One of the most discussed topics over the last few months has been the anticipated increase to the cost of living in the UK. The Office for National Statistics state that 9 in 10 adults in Britain have reported an increase in their cost of living. Here, Weronika Husejko takes a closer look at the impact of the cost-of-living crisis and how it will impact financial remedy proceedings.

What impact will this have?

Whilst the Government have recently announced measures to help tackle the crisis, including tax cuts and a £400 energy discount, there are other factors such as inflation which will inevitably increase all of our expenditure going forward.

The cost-of-living crisis is expected to see individuals fall into more debt than usual, experiencing difficulties meeting their standard outgoings and ability to afford other activities such as holidays.

This will be ever more relevant for those going through the process of separation, in particular those with a mid to low income. They will be amongst those most impacted by the significant increase in expenditure, one of the reasons being that it can be very difficult to adjust from a household with two incomes to that of one. Outgoings naturally increase upon separation as there are two households to upkeep as opposed to one.

Will this be taken into consideration within financial remedy proceedings?

When financial remedy proceedings are issued, the Court will direct that both parties are to complete a Form E of their financial disclosure. Within that form, there is a section relating to the income needs of yourself and your children.

Your income needs are your general expenditure, whether that be on an annual, monthly or weekly basis. This involves detailing a list of your regular outgoings such as rent, utility bills, food and clothing. This is an important part of financial remedy proceedings as it allows the Court to see what your outgoings are and how much you need to meet them. They can then compare it to how much income you have.

You are given the opportunity to state not only your ‘current’ income needs, but also your ‘future expected’ income needs. This is because the Court consider both current and future needs. Therefore, in circumstances where you expect your income needs to change, whether that be higher or lower, you can make this clear to the Court within your Form E.

The Form E also includes a ‘liabilities’ section which allows you to disclose any debts you have. Generally, ‘hard’ loans e.g. bank loans or credit cards will be taken into account by the Court, even if they have been incurred post-separation. As a result, if your debts increase due to the current economic circumstances, this may be relevant within financial proceedings.

It follows that if you have been or are going to be impacted by the cost-of-living increase, this may be taken into consideration by the Court within financial remedy proceedings.

The legitimacy of Court-Appointed ‘Experts’ in parental alienation cases

Posted on 18th October 202224th January 2023 by McAlister Family Law

The legitimacy of Court-Appointed ‘Experts’ in parental alienation cases

Ruth Hetherington, Partner and Head of the Private Children Team at McAlister Family Law, and a Specialist in Children matters welcomes the announcement that the President of the Family Courts, Sir Andrew McFarlane will be overseeing an Appeal later this month in which issues of parental alienation and the use of experts will hopefully be reviewed.

What is parental alienation?

Parental alienation has been a hot topic for many years now. There is no legal definition of parental alienation, but the concept has evolved through cases that are heard in the Family Courts. Cafcass, the independent body appointed by the Court, defines parental alienation as ‘when a child’s resistance/hostility towards one parent is not justified and is the result of psychological manipulation by one parent’.

In my experience sadly, it is becoming a very common feature in cases where parents have separated and one parent, whether directly or indirectly, displays to a child or children unjustified negativity aimed at the other parent.

What are the repercussions of parental alienation?

In such cases the relationship between parent and child can be lost altogether and the courts have been struggling to deal with such cases as quite often the alienation can be subtle, difficult to identify and can take place over several months if not years.

I have acted for both parents and children in these types of situations and I have seen first-hand the harm that children suffer as a result, which can be long term and affect children in developing healthy relationships themselves.

From my point of view trying to establish that parental alienation exists is a difficult task and as such the Courts have allowed Experts (generally Psychologists) to be appointed to assist in evaluating negative behaviours.

The use of Experts in cases of suspected parental alienation.

In the case that is to be overseen by the President of the Family Courts, Sir Andrew McFarlane, later this month, the qualifications of the Expert who was appointed, will be under scrutiny. The Expert believed parental alienation had taken place, but there is concern from the Court that this Expert may not have been appropriately qualified and was not regulated by any professional body.

In my opinion the regulation of court appointed Experts is something that needs to be addressed urgently. Therefore, the announcement of this Appeal is very much welcomed, and I sincerely hope that the concept of “parental alienation” is also addressed. Although professionals who deal with matters such as these have their own working hypothesis, there needs to be clear guidance given to both professionals, parents and anyone who cares for children about how the Court will deal with cases where a parent/carer of children behaviour is not what it should be.

What needs to change?

Parental alienation can have detrimental effects on a child’s mental health and wellbeing, right into adulthood. It is my view that parents/carers need to have their children at the forefront of their minds in everything that they say and do, to protect them from what will be a sad and upsetting experience of their parents separating. It is sometimes hard for parents to hide their own feelings and as a result they lose sight of the fact that their children will pick up on their parent’s behaviours.

In my opinion children often get outlooked when ‘battle lines’ are drawn between the parents, and it is for these reasons that the Court will be assisted by an Expert. The Court’s paramount consideration is always the welfare of the children, and it is therefore understandable that the need for the Court to be guided by Experts is sometimes required.

Final thoughts

It is my hope that as awareness is raised around the detrimental impact parental alienation can have on the whole family, particularly on the children, we will get to a point where the use of Experts will be evaluated and scrutinised to ensure that the Expert is right for that particular family, appropriately qualified and only used where absolutely necessary.

It is crucial for any parent who has concerns over child arrangements, or feels they are victim to parental alienation, to instruct a lawyer who is highly specialised in children matters. This will ensure that that all matters can be addressed and will ensure that the child’s welfare is at the heart of any decision that a parent may take, which will ultimately inform the Court’s overall final decision for the arrangements of any child.

How would Stallone’s alleged misconduct sit with the Courts of England and Wales?

Posted on 1st September 202224th January 2023 by McAlister Family Law

How would Stallone’s alleged misconduct sit with the Courts of England and Wales?

Sylvester Stallone hit the headlines once again recently, after news broke that his wife of some 25 years, Jennifer Flavin, had filed for divorce. In his latest blog post, George Wilson takes a closer look at how Stallone’s alleged misconduct would sit with the Courts of England and Wales.

The divorce suit was filed just days before a video emerged of Stallone, now 76 years old, covering up a tattoo of Flavin on his bicep with a picture of Butkus, the bull mastiff from the Rocky film franchise. Although Stallone was not shy about disclosing the video to the world at large, it has been alleged by Flavin that he hasn’t quite disclosed things he should have and has hidden marital assets within the divorce proceedings. Flavin’s legal team further state that the Stallone has:

“engaged in the intentional dissipation, depletion and/or waste of marital assets which has had an adverse economic impact on the marital estate”

Naturally, Stallone’s solicitors have denied any sort of misconduct.

How would Stallone’s alleged misconduct sit with the Courts of England and Wales?

In the jurisdiction of England and Wales, all parties to financial remedy proceedings within divorce owe a duty of full and frank financial disclosure to the Court and, in turn, their spouse. Essentially, parties within the proceedings must disclose all of the available information about their assets and income, by way of detailed financial disclosure, usually on the standard document used for such disclosure, Form E. Such disclosure will include evidence of the value of properties parties have an interest in, copies of bank statements linked to bank accounts in their name, evidence of their income and income needs, evidence of other assets such as investments and ISAs, valuable chattels such as artwork, jewellery, and watches, and motor vehicles.

Parties will also need to provide evidence of dividend counterfoils, company accounts, tax returns, and any liabilities they might have against their name. This list is by no means exhaustive, and parties are often shocked at how much detail they are required to provide within their financial disclosure. A blank Form E can be found at this link for ease of reference.

If parties to a divorce refuse, or fail to provide the required disclosure, the consequences (and remedies available to the Court and their spouse) are very serious. The court is likely to draw “adverse inferences” about parties who fail to provide the required disclosure. Essentially, this means that the Court can, and will, assume a spouse has something to hide and can make robust assumptions about the trust value of their assets and level of their income. Furthermore, if the divorce (and financial remedy proceedings) has concluded and one spouse believes that their ex-spouse had hidden assets, it may be possible to reopen the case. The court can reopen any case if it finds there has been deliberate and fraudulent non-disclosure of assets by one spouse.

Such assets, now visible and disclosed, will come under scrutiny, and the court can decide as to how the same should be divided. Perhaps the worst outcome of being found ‘guilty’ of non-disclosure, is the Court finding that a spouse has been in contempt of court and if the contempt has been deliberate, then the guilty spouse can be fined or even have a custodial sentence forced upon them. It is therefore of paramount important to work with a solicitor to ensure that the disclosure you provide is full and frank.

Stallone has also been accused of dissipating marital assets. Dissipation of assets occurs when one spouse has used, given away or otherwise transferred, converted, wasted, mismanaged, or adversely affected assets that would have been subject to division and distribution. Dissipation of assets may be in the form of the quick sale of assets such as property, stocks and shares, or other chattels such as artwork. Dissipation can also be more subtle and can be in the form of significant ‘gifts’ to friends and family, substantial cash withdrawals, gambling, or other unusual and possible reckless purchases. The court will see such dissipation of assets as an act of litigation misconduct.

Under the Matrimonial Causes Act 1973, it is possible for one spouse to apply to freeze certain assets belonging to the other, to reduce the risk that they are dissipated. In such circumstances, it is essential to act quickly, with the assistance of solicitor, should you suspect that your spouse intends to dissipate assets, as it is much more difficult to deal with the assets once they have been dissipated.