Can my ex claim my assets after we divorce?
The short answer is yes – if you don’t secure a final financial order at or around the time of your divorce.
Choosing to leave your finances unresolved or making a private agreement with your spouse that’s not formalised in a court order is risky. No matter how amicable your divorce appears to be at the time, you leave yourself exposed to a financial claim by your ex long into the future. (Although the potential for such a claim is significantly limited if your ex gets married again.)
In this blog post, we will discuss the infamous case of Vince v Wyatt from 2015 which neatly illustrates the importance of reaching a comprehensive, court-sanctioned financial agreement.
Beyer Family Law, a London-based firm, offers bespoke legal advice, covering all aspects of divorce, including financial settlements and property division as well as child arrangements. Please contact us online or call +44 (0)20 8616 8560 to arrange an appointment. We are German-speakers and many of our clients are German nationals with a connection to the UK who wish to get divorced here.
What happened in Vince v Wyatt (2015)?
The UK Supreme Court’s ruling in Vince v Wyatt (2015) sent shockwaves through the media and family law community because it reinforced the principle that financial claims can be brought long after a divorce. This case serves as a crucial reminder of the importance of securing a so-called ‘clean break’ consent order.
Here’s a brief summary of the case.
Kathleen Wyatt and Dale Vince married in 1981. At the time, they led a modest, unconventional lifestyle, living as New Age travellers, often in caravans and buses, and embracing a countercultural, alternative way of life.
In their early years together, they travelled to India, seeking a spiritual and alternative way of living, which aligned with their rejection of mainstream society. They had their first son in 1983.
Mr Vince’s passion for renewable energy started during his New Age traveller days. In the late 1980s, he built a wind-powered generator to provide electricity at a festival, an early demonstration of his interest in sustainable energy. This experiment sparked his idea that wind power could be a viable energy source for wider use. Over time, he developed this idea into a business model.
The couple divorced in 1992, when both were still struggling financially. Crucially, no financial settlement was made at the time, as neither of them had any meaningful assets to divide. Years later when lawyers tried to get a copy of the court file from 1992 it couldn’t be located.
Dale Vince’s financial success after divorce
After their divorce, Mr Vince’s fortunes changed dramatically. He went on to found Ecotricity, a company specialising in renewable energy, particularly wind power. Ecotricity grew into a highly successful green energy company; Vince became a multi-millionaire. As of 2022, his net worth was estimated at over £100 million. His business ventures transformed him from a man living in a caravan to a prominent green energy entrepreneur, even receiving recognition from the British government for his contributions to sustainability.
Kathleen Wyatt’s financial claim – a legal battle decades after divorce
In 2011, almost 20 years after the divorce, Ms Wyatt applied for a financial order, seeking a lump sum payment from Vince. She argued that she had raised their son alone, with no financial support from Vince, while he had gone on to become incredibly wealthy.
Vince attempted to have the claim struck out, arguing that it was brought too late and was essentially an opportunistic attempt to share in wealth he built long after the marriage ended.
The Supreme Court’s Decision
In 2015, the UK Supreme Court ruled that Wyatt’s claim was legally permissible, meaning she had the right to pursue financial relief, even though over two decades had passed since the divorce. The court noted that her claim would need to be considered on its individual merits. In the event, she received a lump sum of £300,000, which was a much lower sum than she originally sought. This was perhaps an unsurprising outcome given the Supreme Court’s acknowledgment of the ‘formidable difficulties’ she faced in making out her claim. These obstacles included:
- The length of marital cohabitation was just over two years
- The marriage had ended 31 years prior
- The standard of living enjoyed by the parties prior to the breakdown could not have been lower
- The husband did not begin to create his current wealth until 13 years after the breakdown
- The wife made no contribution, directly or indirectly, to the creation of this wealth
Lessons from Vince v Wyatt
Anyone getting divorced in England and Wales should be aware of what happened in Vince v Wyatt. Here are the key takeaways:
- Do not assume that financial claims die with a divorce in England – Vince v Wyatt confirms that unless a financial order is in place, a claim remains open indefinitely (exceptions apply). This is particularly important in cases where one party may experience a significant financial change after divorce.
- Do not assume either that financial claims are time-barred after a certain number of years – as Lord Wilson bluntly puts it in the unanimous Supreme Court judgment:
Consistently with the potentially life-long obligations which attend a marriage, there is no time-limit for seeking orders for financial provision or property adjustment for the benefit of a spouse following divorce.
- Get a clean break order even if you have no assets – many people assume that because they have little or no assets at the time of divorce, there is no need for a financial order. This is a major mistake. Without a clean break order, financial claims remain open indefinitely. The case also highlights the risk of delayed financial settlements, particularly for high-net-worth individuals or those with future earning potential.
- If your net worth increases after divorce and you don’t have a clean break consent order, seek advice – at Beyer Family Law we are often able to offer favourable fixed fees for a first meeting and are happy to discuss our charges at the outset.
Comment
The Vince v Wyatt case reinforces a simple but crucial lesson: financial matters should ideally be settled at the time of divorce. Family lawyers must be diligent in advising clients on the risks of open-ended claims, and divorcing individuals must take proactive steps to secure their financial futures.
Get in touch
Kerstin Beyer and Monika Pirani are German-speaking Family Law Solicitors in London. Our firm specialises in divorce, child custody, financial disputes, mediation, pensions, maintenance and jurisdiction issues. Please call us on +44 (0)20 8616 8560 – we’d be happy to have an initial chat about your circumstances.