I gave up work to look after the children – can I get compensation from my spouse?
A recent High Court case ordered a solicitor husband to pay £400,000 “compensation” to a wife who gave up her career as a solicitor in order to care for children. However, as the judgment made clear, this was a truly exceptional case.
Firstly, the parties assets could more than meet their respective needs. For the majority of people all their assets are required to meet their needs for housing (in particular), savings, provision for retirement and income. Where the assets do not meet all parties’ needs, then the settlement depends on who needs what.
Secondly the circumstances were extreme. The Judge said ‘It is agreed that the husband did not want her to remain at the firm if they were to marry and she accepted that she could not remain. I am satisfied that, by the time the decision was taken to leave, she had formulated her plan which involved both marriage and, hopefully, children. She viewed herself as the parent who would take primary responsibility for the children. The husband’s career took precedence.’
The parties had agreed, albeit reluctantly to this prior to their marriage. The Judge stated the wife could potentially have become a partner at the firm at which she was training.
Thirdly her mental health had been significantly impacted following the separation with psychiatric hospitalisation and suicidal attempts. She was unlikely to be in a position to return to the career that she had left behind.
So, in answer to the question in the heading, the answer is: it is highly unlikely. Primarily matrimonial assets are used to meet needs. Only when needs are satisfied will the court look at issues such as compensation. After that the Court will look at the sharing principle. However, the basic principle is that after a divorce each party should be financially independent. The settlement should allocate capital fairly and going forward each will earn their own income. There are always exceptions however and each case turns on its facts so if in doubt please make an appointment for advice.
