Jake Richards, 9 Gough ChambersThis article argues that the suspension on prison visits during this period and the deficiency of measures to mitigate the impact of this on family life and to protect...
ANCILLARY RELIEF/ NON-MATRIMONIAL ASSETS: Jones v Jones  EWCA Civ 41
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Mar 3, 2011, 07:10 AM
Article ID :93709
(Court of Appeal; Wall P, Arden and Wilson LJJ; 28 January 2011)
The parties separated in 2006 after a 10 year marriage. A company founded by the husband before the marriage was valued at £2 million just before marriage. During the ancillary relief proceedings, the company was sold for £32m, of which the husband received £25m. The wife appealed the decision of Charles J in J v J  EWHC 2654 (Fam). The judge had awarded the wife £5.4m on a clean break basis, of which £400,000 was in respect of her costs. The wife sought, as she had at first instance, £10m.
Held it was not appropriate to capitalise earning capacity as at the date of the marriage and treat it as a capital asset - the judge's approach was wrong (GW v RW overturned). It was however appropriate to incorporate the spring-board effect and passive economic growth into the value of a company at the date of marriage. The court should first divide the assets into matrimonial and non-matrimonial, but often a precise division is unlikely to be required. The sharing principle should then be applied and the overall percentage division considered as a cross check.