SEPARATING couples may find it easier to make a clean financial break when their relationships end, following an important family-law judgement made by Supreme Court judge Adrian Hardiman.
While Irish divorce law does not allow 'cleanbreak divorce', Hardiman found that a Co Cork woman was not entitled to any claim on her husband's finances and assets which had been generated after their 1993 separation. The husband was worth over 7m when the divorce case was heard in 2004.
The husband and wife were each born into substantial farming families in Co Cork in the 1950s.
Their families were neighbours. They married in 1978 but had no children. They acquired a substantial land holding in Co Cork through inheritance and bank finance purchases. By the early 1980s, they jointly owned a farm of 204 acres, while the husband had another 67 acres in his name and the wife had 80 acres in her name.
The marriage ended in 1988, although they did not formally separate at that time. As Hardiman said in his judgement, they "were in effect living separate and apart but in the same house".
The husband was, however, spending more time in his mother's house. In 1991, he moved out of the family home. When a detailed separation agreement was signed on 8 April 1993, the wife was 40 years old and the husband was four years older.
"The standard of living enjoyed by the parties before separation seems to me to have been one of comfortable but unostentatious sufficiency on a farm of approximately 350 acres, " Hardiman concluded.
The separation agreement was seen, at that time, as "a full and final settlement between the parties". The wife received 178 acres along with farm equipment and buildings as well as the family home. The husband received 174 acres without any buildings or equipment. Sixty-three cattle were sold to clear some bank debts.
After 1993, the husband was involved in another relationship and became the father of two sons. That relationship had, however, ended by 2004. His financial position "prospered exceedingly" according to Hardiman's judgement. "This is substantially as a result of the shrewd acquisition and sale of property near the expanding city of Cork, " the judge said. The husband was helped by his mother, who Hardiman observed, "although now in her middle-80s, was stated to be a shrewd and formidable businesswoman." The husband received 3.3m in early 2003 from a trust established by his mother. By the end of 2004, Hardiman estimated the husband's net worth to be in the region of 7m.
The financial position of the wife was less successful. Two experts told the court that she farmed her 170 acres with its milk quota and stock in "the most inefficient and expensive manner possible". During the late 1990s, the wife embarked on a series of land sales including the family home. Part of this money was used to build a new four-bedroom house described by her accountant as "fabulous" and by the wife as "built and fitted out to the highest standard". By the end of 2004, Hardiman estimated the wife's net worth to be in the region of 1.3m.
The wife made no approach to her husband for financial support after the 1993 separation agreement until he issued divorce proceedings in 2004.
While Irish law does not allow for separating couples to adopt a 'clean break', Hardiman in his judgement considered a number of cases from the English family law courts. The judge concluded that the wife was entitled to no claim on her husband's finances and assets generated after the 1993 separation. "It cannot be said that the wife made any direct or indirect contribution to the great commercial success which the husband has enjoyed in recent times, " he said.
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