Ground Breaking Divorce Ruling

Lords in favor of large payouts for wives

The Miller was a short, childless marriage lasting only 2 years and 9 months. The husband had an estimated wealth of £32m. Mrs Miller was awarded £5m by the High Court Judge and Mr Miller appealed. The award was upheld by the Court of Appeal and Mr Miller appealed again to the House of Lords. Their Lordships refused the appeal again and upheld the award in Mrs Miller's favour, albeit that their decision was based on slightly different reasoning.

The McFarlane case solely considered a spouse's entitlement to income following divorce, the parties having already agreed an equal capital division. Mr McFarlane had a net income in excess of £750,000 per annum. Mrs McFarlane argued that she should receive a share of his income which exceeded her needs in order to achieve fairness, equality and to compensate her for the fact that she gave up her high-earning career following a joint decision that she would look after the children. A range of different decisions were handed down in the lower courts but the House of Lords has today reinstated the original decision of the District Judge, namely an order for her to receive £250,000 per annum for the rest of their joint lives or until there is a further order or until she remarries. The law lords wrapped up the two cases in a single judgement that rewrites divorce law in England and Wales and is expected to have a knock-on effect in the Scottish courts, where wives are traditionally treated less generously.

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