FYI – Top 10 Divorce Settlements

news source : Telegraph.co.uk

Here is a list of what is thought to be the highest divorce settlements

In 1994, Neil Diamond and Marcia Murphy separated Photo: AP

According to Russian news sources, Irina Abramovich settled for $300m (£155m) Photo: GETTY

 

1. Rupert and Anna Murdoch – $1.7 billion

Rupert married Anna in the 1960s, with the pair remaining together for 32 years, having three children. They split amicably in 1998. The divorce was finalized in June 1999 when he agreed to let her leave with $1.7 billion. 17 days later he married Wendi Deng.

 

2. Adnan and Soraya Khashoggi – $874 million

Saudi businessman Adnan made his money as an international arms dealer for the Saudi royal family. He then launched his company Triad, based in Switzerland, owning banks hotels and real estate across the world. He married Soraya in 1961. Their 1982 divorce resulted in an estimated $874 million settlement.

 

3. Craig and Wendy McCaw – $460 million

Craig made his money turning a failing TV cable service into a successful business, eventually selling for $755 million. In 1981 he then acquired cellular phone licenses, eventually selling to phone company AT&T for approximately $12 billion, becoming its largest single shareholder.

The pair met at Stanford University when she tutored him, with them marrying in 1974. In 1995 divorce proceedings were initiated with Wendy wanting her share to support a $200,000 a month lifestyle.

 

4. Roman and Irina Abramovich – $300 million

It had been speculated that the settlement could have left her the world’s richest ever divorcee. But according to Russian news sources, Mrs Abramovich settled for $300m (£155m). The figure included the value of homes in Britain and Moscow, as well as a yacht and private plane. At one point it was thought he would have to pay a settlement of at least $1 billion.

 

5. Michael and Maya Polsky – $184 million

According to court records, the couple married in the Ukraine in 1975, coming to the US in 1976 with “only four suitcases and $500 in cash. After sighting irreconcilable difference in 2003, Maya Polsky filed for divorce from energy magnate Michael Polsky. In October 2006 a Chicago judge said Mrs Polsky was entitled to at least half of the couple’s assets.

 

6. John ‘Jack’ Welch and Jane Beasley – $180 million

Welch is the former Chairman and CEO of General Electric, the technology and service conglomerate in New York, now ranked as the world’s largest company. The couple married in April 1989, divorcing in 2003. While Welch had reportedly written a prenuptial agreement, there was a 10-year time limit. Beasley reportedly left with amount to be in the range of $180 million.

 

7. Michael and Juanita Jordan – $168million

The most expensive celebrity divorce in history. The former Chicago Bulls basketball superstar married Juanita Vanoy in 1989. They divorced in 2007. It is thought negotiations between the couple added £20 million to the final deal from an initial settlement. The marriage had shown signs of trouble in the past with Juanita filing for divorce in 2002, although they announced a reconciliation.

 

8. Neil Diamond and Marcia Murphey – $150 million

When Diamond met Marcia Murphey, he was already married to his first wife. In 1994, they separated, she citing “irreconcilable difference”. The singer claims he willingly gave her the money.

 

9. Steven Spielberg and Amy Irving – $100 million

Amy Irving shot to fame in 1976 when she played the lone teen survivor in Carrie. Spielberg began to make a name for himself in Hollywood, following Jaws. The pair married in 1985, but the pair broke up four years later. He gave Irving, the mother of their son Max $100 million.

 

10. John and Beverly Charman – $95 million

The pair met in 1969 at school. When they married in 1976 neither had significant resources. In November 2003, Mr Charman, nicknamed “King of the London Insurance Market”, told his wife he was setting up residence in Bermuda and their marriage was over. He initially offered her £6 million cash, but she argued that the sum was not enough. The judge decreed a fair settlement would involve him giving 37 per cent of his assets. Mr Charman had a subsequent appeal dismissed. It is thought to be Britain’s highest divorce settlement.

Separation Agreement – Facts Revealed!

A separation agreement is not a divorce. This tends to confuse people when they talk about it.

A separation Agreement or what is commonly called as a ‘Judicial Separation’ is only an order of Court that, if granted, breaks up the commitments or benefits brought out by a marriage. The more common forms however of a separation agreement without any court intervention is whereby the parties agree beforehand about any financial agreements, the children and the planned divorce. This agreement is binding on both parties until the divorce commences during which time the parties can ask for the courts to make an order confirming the terms of the separation agreement.

There are many organisations in London and Wales who belong to the United Kingdom College of Family Mediators. With a mediator in place you and your spouse can proceed to contact your solicitors and begin the process of the separation agreement. The agreement is rather simple and not very complex in nature. It identifies the parties to the agreement and confirms that both parties have taken legal advice on the matter. Both parties will agree that the marriage has broken down irretrievably and that they are planning their divorce. It is important not to attribute blame during the agreement though.

Child custody is very important and both parties would need to find middle ground in order for it to work. Decide with whom the children will live during the term of the agreement and depending on the children’s age, at which age they can decide for themselves with which parent they would want to live with. Also agree beforehand on the visitation hours and days which the other party can visit the children and access to the children on public holidays, birthdays and school vacations. Remember if your children live with you, you can claim income support or a Jobseekers allowance from the Child Support Agency. Also contact the Inland Revenue Tax Credit office to inform them of your separation agreement and your current status as you can also claim Child Tax Credit.

Decide on who pays for the school and any extra mural activities that they may take part in, Should both parents still reside in the same location the children will stay in the same school, however if one parent moves out of the area, decide before hand, what will happen to the children’s schooling. More importantly, include a clause which will state that should one of the parents die, the other will have full custody of the children and the children will reside with that parent at the discretion of the parent. In the event that both parties die, choose custodians for your children beforehand.

Child support needs to be discussed. Not only the monthly payments but also on which parent’s medical plan or insurance plan the children will go. With children this is very important as they will always need dentist visits for braces and other medical services.

Property division can be a stalling point for many. Most divorces are defended on the bases of property. The best idea is to decide how the property gets divided. Each party makes a list of goods they want, be it because they use it most often or that it might have sentimental value to them. Once each party had drafted a list of what they require from the joint property. Exchange lists and see what concessions need to be made. The remainder of the property you can then divided down the middle or sold off to raise money which can then be divided. Make a list of who gets what and attach it to your separation agreement.

Last but not least is the issue of the home you live in. Who will make the mortgage or bond payments and what will happen to this property after the divorce. You might decide that the children may live in it until you are divorced after which it will be sold and the money divided equally.

A separation agreement has a softer tone that that of a divorce. Both parties still interact with each other and this normally makes for an undefended and easier divorce. It also provides the children with time to adjust to the new arrangements without any anger from any of the parents.

Pre-nuptial agreements given recognition in English law!

News Source : telegraph

Pre-nuptial agreements were given significant recognition in English law for the first time yesterday after a wealthy German heiress won a landmark legal battle with her former husband. 

Three Appeal Court judges ruled that the assets of Katrin Radmacher – a paper industry heiress said to be worth £100 million – should be protected from her French ex-husband because of the pre-nuptial contract they signed before they married.

They said that in future cases, judges deciding the division of marriage assets should give “due weight” to pre-nuptial contracts freely entered into by the parties.

In what one divorce solicitor described as a judgment that was “hell-bent” on enshrining pre-nups in law, the judges even suggested the agreements could be an alternative to the “stress, anxieties and expense” of divorce hearings in the courts.

Miss Radmacher, 39, had brought her case to Court of Appeal to challenge an earlier ruling in the High Court that she should give £5.85 million to Nicolas Granatino, despite him having signed a contract vowing never to make claims on her if they split up.

That ruling had been made by Mrs Justice Baron, in the Family Division, who had said it would be “manifestly unfair” to hold Mr Granatino to the pre-nuptial contract as such agreements had never been legally binding in this country.

Although the agreement was signed in Germany, the couple married in London in 1998 which was why the case was being heard in England.

The couple lived together in the UK and in New York before the marriage broke down in 2003 when Mr Granatino, 37, left his well-paid banking job to become a £30,000-a-year biotechnology researcher at Oxford University. They divorced in 2006.

In yesterday’s landmark ruling, Mr Granatino’s settlement was cut to about £1 million as a lump sum in lieu of maintenance, with a fund of £2.5 million for a house which will be returned to Miss Radmacher when the youngest of their two daughters, who is six, reaches 22.

His debts of about £700,000 are to be paid off by the heiress, who had always agreed to this settlement.

But the ruling made clear the court was awarding the money for the children – which the pre-nup always stated fell outside its remit.

Lord Justice Thorpe, sitting with Lord Justice Rix and Lord Justice Wilson, said that in any future cases, judges should give “due weight” to pre-nuptial contracts freely entered into.

He said: “In so far as the rule that such contracts are void survives, it seems to me to be increasingly unrealistic.

“It reflects the laws and morals of earlier generations. It does not sufficiently recognise the rights of autonomous adults to govern their future financial relationship by agreement in an age when marriage is not generally regarded as a sacrament and divorce is a statistical commonplace.”

The wording suggests the judges were persuaded by barrister Richard Todd, for Miss Radmacher, who in April argued that the freedom to agree a contract was “at the heart of all modern commercial and legal systems”.

Lord Justice Thorpe stressed that “a carefully fashioned contract should be available as an alternative to the stress, anxieties and expense of a submission to the width of the judicial discretion.”

Emphasising how English matrimonial law was out-of-step with Europe, he also said courts here were “in danger of isolation” on the issue. In France or Germany, Mr Granatino would have been awarded nothing because of the pre-nuptial contract.

The contracts are still not binding under English law, as there is no provision for them under Section 25 of the 1973 Matrimonial Causes Act.

In the 47-page judgment, Lord Justice Rix called for Parliament to clarify the law on them, saying he could see “great force” in the argument that they be treated as “presumptively valid”.

The Law Commission is due to report on the matter by 2012 and draft legislation is expected to follow.

David Lister, a partner in matrimonial law at solicitors Mischon de Reya, said it was the most important ruling on pre-nups to date because the judges made clear they wanted it applied across the board.

“They appear to be hell-bent on creating a judgment that says ‘Please take pre-nups more seriously,” he said.

“It is saying they are more likely to be binding then they were before.”

Vanessa Lloyd Platt, another leading divorce lawyer, warned that those who signed pre-nups thinking they were worthless would now be making “a seriously flawed move”.

Although it would take an act of Parliament to “enshrine” them in law, she said the judgment had “effectively created a situation where that is the case”.

“This will open the floodgates for people asking for pre-nups,” she said, noting: “It’s not just the wealthy, it’s filtered down to the middle classes.”

“Lawyers will be advising, ‘It’s better to have one that not.’ ”

In a statement outside court, Miss Radmacher said: “I am delighted that the court accepts that the agreement Nicolas and I entered into as intelligent adults before our marriage should be honoured.

Breaking up is no longer hard to do … but why?

News Source : The Herald

Marriages don’t last,” the American comedian Rita Rudner once said. “When I meet a guy, the first question I ask myself is: Is this the man I want my children to spend their weekends with?’”

It is certainly true that the wagon of marriage has never seemed as rickety as it does today. On Monday, Hollywood actor Mel Gibson became the latest celebrity to take a tumble, as his wife Robyn filed for divorce after 28 years of marriage and seven children.

Mrs Gibson cited irreconcilable differences as the grounds for her petition. If the case goes to court, she could be in line to receive half of the fortune her husband has amassed during a three-decade career – make that £320m.

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The Gibsons have joined a long line of famous couples who have taken the well-trodden road to the divorce court. Some, like Madonna and Guy Ritchie, have been able to resolve the matter with relative ease. For others, such as Sir Paul McCartney and Heather Mills, the process has been a lot more painful.

The Hollywood divorce epidemic is one that has, in recent years, been mirrored in Scotland. Almost 13,000 couples were granted a divorce in 2007, and although this was down fractionally on the previous year, this reflects a far larger decline in the number of marriages, which has fallen by almost a third in the past 40 years.

Moreover, the true extent of family break-up is far greater than this, as the figures do not show the number of co-habiting couples who split up. More than half of all children in Scotland are born to unmarried parents. Scotland is fast becoming the home of the broken home.

According to Ruth Alexander, an associate at Edinburgh lawyers Russel and Aitken, the business of divorce has never been busier: “There are certainly more people coming forward to seek advice. Also, there are more couples having agreements drafted to regulate what will happen in the event that they separate.”

To a large extent, says Kirsten Gronning, co-director of relationship advice service Breakup Angels, the procession of celebrity divorce cases has made divorce a more acceptable option for ordinary people. However, she warns that the adversarial nature of celebrity divorces helps to create unrealistic expectations of divorce proceedings: “There’s still a stigma about divorce because of religious beliefs and so on, but the adverse side of this is that the money these people are arguing over has no relationship with most people’s lives. When people hear about celebrity divorces where they’re fighting over huge sums, it makes them greedy.”

In an attempt to bring divorce law into line with modern living arrangements, the Scottish Government introduced the Family Law (Scotland) Act in 2006. It introduced a number of changes in seeking to end the polarising culture of divorce cases.

The act provided greater legal safeguards for the children of cohabiting couples in the case of separation, and established rights for unmarried fathers who jointly registered the child’s birth.

Critics claimed the act made divorce easier. However, lawyers claim it has been so poorly publicised that many Scots are still unaware of their rights under the act, and as such its powers have not been fully tested in court.

Anne McKeown, a partner at Thorntons law firm in Arbroath, said: “It’s been approached quite gingerly. People are still clearly in the dark about their rights and entitlements; there’s an uncertainty about it. Under the new law, the required separation period for divorce has been reduced from two years to one year with consent, and from five years to two without consent. I don’t think a lot of people realise that.”

Elizabeth Welsh, chair of the Family Law Association, which represents family law solicitors in Scotland, believes the lack of information leads to women being exploited: “On pension rights, women – and it’s mostly women – tell me they don’t want to take their husband’s pension, even though they’re entitled to it. Often they’ll be given the house and think that’s a good offer, until they realise that the equity in the house is worth £20,000 and the pension is worth £200,000.”

The Family Law Association want specialist family courts with dedicated sheriffs to be set up, which would double up as sources of advice and information. Ms Welsh says: “Family law should not be something that lawyers dabble in. What is needed is for people to know where to go to get the right advice.”

5 Things You Should Consider When Choosing a Divorce Lawyer

A good divorce solicitor is a godsend. They can make the division of property, child custody decisions and every aspect of ending a marriage much simpler. There a number of qualities in a good divorce solicitor which you can look out for. These factors are easy to spot and by considering them when you are looking for a solicitor you can make your divorce much easier to deal with.

Local – It’s quite likely you will need to be in regular contact with your solicitor, for this reason its worth going for a local solicitor if one is available. It will make it much easier for you to organise to meet them and make you a more flexible & desirable client for the family law firm

Listens – The most important thing to look for in a divorce law solicitor is how good they are at listening. You are going to need to share intimate details about your relationship with this person. It needs to be someone you can trust to listen to you. You need to feel comfortable talking to them. It’s really important to meet a divorce solicitor before committing to their services. A face to face meeting can tell you lots more about a person than a hundred phone conversations.

Experienced – Much like you wouldn’t get a plumber to fix you car you want a specialist in family law. A solicitor who works solely in divorce is going to be able to advise you much better than someone who practises in every area of law. When the outcome of the divorce could drastically affect your quality of life you really don’t want a jack of all trades.

Affordable – It is worth remembering there isn’t always a direct relationship between how much something costs and how good it is.It doesn’t matter how good a solicitor is if you can’t afford them. Ask early on how much their service are going to cost you. There’s no reason to feel uncomfortable about asking the question, you wouldn’t normally buy something with no idea of how much it costs.  Just because one solicitor is more expensive than another solicitor doesn’t mean they are any better qualified to deal with your divorce.

Contactable – It important to be able to get in contact with the solicitor dealing with your divorce easily. Some solicitors are known for their evasiveness. A good tip is to try and contact your potential solicitor several times on the phone before signing up with them. That way you’ll get a good idea of how difficult it will be to stay in contract during the duration of your divorce.

It’s worth shopping around for a divorce solicitor. It will make your divorce go much smoother and make your life easier.

Divorce – 5 Important Steps to Take BEFORE You Separate!

It is definitely not easy when you decide to divorce your spouse or decide to separate from your spouse. In an effort to make you more prepared during this tough transition period, following are the five important steps to take before you proceed to separate or divorce.

Pre Divorce Step 1 – Cancel all Joint/Mutual Bank Accounts

Even as a legally separated couple, you are still financially responsible for all joint accounts. In addition, your spouse still has access to these accounts as well.

Pre Divorce Step 2 – Cancel All Joint/Mutual Credit Cards

As long as both names are on the credit cards, you both will still have access to them. When you have made the decision to separate, make sure that joint credit cards are the first ties to sever. Community debt is debt that occurs while two people are joined in some sort of legal contract such as marriage.

IMPORTANT – Even if the family court judge orders your spouse to pay a debt, the debtor can still come after you if your spouse doesn’t pay that debt.

Pre Divorce Step 3 – Redirect Direct Deposits

Redirect you direct incoming deposits to your personal account  immediately to ensure your money stays your money.

Pre Divorce Step 4 – Cancel All Joint Lines of Credit On Jointly-Held Property

In addition to cutting off all lines of credit to mutual properties, try to pay off any or all joint loans. This will cut back on the ties that will bind you to each other down the road.

Pre Divorce Step 5 – Get Legal Advice

Before you proceed to separate from your spouse, you need to be acknowledged with the legal advice needed to get you through this tough phase with as little damage to your life and family as possible. Having legal advice can optimize your results in the case of a divorce, especially in child custody issues.

Family legal matters can be extremely emotional, frustrating and costly. Because of this, it is important that you get the right family law advice BEFORE you take action regarding a divorce, child custody, child support, adoption, or any other important legal matter.

Get the information you need to make an intelligent, informed decision regarding your and/or your children’s lives. http://www.Osbornes.net is readily available to you to help you properly navigate the legal system in London and surrounding areas. You will be able to speak to professional family law specialist and they will be able to assist you in the right direction.

Is divorce going out of fashion?

ACCORDING TO THE LATEST FIGURES released by the Office for National Statistics, there were 144,220 divorces in the UK in 2007, 2.6% fewer than the previous year. This actually represents a 20% drop from the highest level in 1993.

At this time, we are seeing a rise in the number of so-called “City divorces”. The credit crunch inevitably puts a strain on marriage and wives are deciding to divorce before the generous bonuses of recent years become a thing of the past. Many husbands in the City who come to see us have often felt unsupported at home, particularly during a time of considerable pressure and uncertainty in the workplace; the added financial worries of school fees, hefty mortgages, credit card debts, etc. exacerbate the situation. There is no magic formula for a successful marriage but a key component is to maintain good levels of communication throughout these stressful times.

There are of course fewer marriages than in the past and people are marrying later in life. Indeed, many couples choose not to marry at all. As a specialist Family Law Practice, we offer a variety of solutions to our clients’ relationship matters, such as Cohabitation Agreements, Pre-Nuptial and Post-Nuptial Agreements, Declarations of Trust and we undertake Mediation.

If a relationship ends and a couple decides to separate, there are various methods by which agreements concerning the family finances and contact with any children can be reached; it does not automatically mean that matters will end up in Court. Recourse to the courts is the most costly solution in time, money, stress and the irreparable damage to family relationships. Negotiations can take place between solicitors without any involvement of the Court and we are able to draft a Court Order, which will be placed before a Judge reflecting the agreement reached and without the need for either party to attend in person.

Of course, there are instances where a firm hand is needed and Court proceedings are the only option. We are able to offer our own Advocacy Services to our clients, where appropriate, to save costs. Where it is necessary to instruct Counsel, we use the Leading Chambers in the country.

If your relationship has ended, the most important step is to seek advice early to enable you to assess your options. Instruct a solicitor in whom you have complete confidence and with whom you can confide, but also whose judgement you trust and who is technically able. All the Family Lawyers at Osbornes are members of Resolution. Lisa Pepper is an Associate at Osbornes. She is a member of Resolution which is an organisation of 4,700 lawyers and family justice professionals who believe in a constructive, non confrontational approach to family law matters. Lisa is a regular speaker at the London College of Law and will shortly qualify as a Collaborative Lawyer. She can be contacted on 020 7485 8811 or by email: lisapepper@osbornes.net.