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Hello. In this video clip Im going to look at financial claims, and really the substance
behind them. In my earlier clip Ive looked at the procedure, the process, what steps
need to be taken to get cases ready for the negotiation stage, and how those negotiations
would take place. Whats important is no only what's at stake but what factors are relevant
and therefore how we can achieve a settlement to save time and costs. There is no presumption
in English law for a 50 50 outcome as there are in other jurisdictions. There is a case
law which suggests that we should look at the Ulstic of equality, so if 50 50 is not
going to be the outcome, then what should the outcome be, and the reasons for that?
So we are very much guided by a checklist of factors called section 25 of factors, and
although this is not an exhaustive list, relevant factors can include such things as, are there
any children? How long have the parties been married, and how old are they? Are there any
health issues which need to be taken in to account? What are the resources in the case?
What's in the pot and what are the respective earning capacities of the husband? What if
now or in the foreseeable future, what contributions have been made by the parties? They can be
financial contributions, they can also be non-financial contributions, for example being
a home-maker and carer for the children. Importantly in the vast majority of cases one of the checklist
factors which always features are needs; what do the husband and wife need? They will need
a house, and particularly relevant are whether there are children. So there are housing needs.
Practically, rather than getting bogged down in percentages, where is that house going
to be? Where is it going to cost? What are the respective borrowing capacities of each
of the parties? So therefore what mortgages are available to them and how much will that
cost? So, broadly speaking we've got what to look at housing. We've also got to look
at income; what is the income for all sources in the case, and therefore particularly with
the more vulnerable party, what is his or her maintenance needs? That can be a very
important feature in a case. Not only child maintenance, but here Im talking about spousal
maintenance; how much maintenance is to be reasonably paid? Also, again importantly,
how long should that maintenance be paid for? There will always be competing arguments as
you can see from the checklist of factors that leans itself sometimes to substantive
negotiation, but where there is dialogue and where there is communication it will often
result in a settlement. Quite clearly as I have said in my earlier video clip, it is
very important that the procedure is followed alongside so we can determine as best we can
what accurately is in the matrimonial pot, taking into account what are the assets of
the case and what are the liabilities and what can be incomed to ensure that everything
is fair, because ultimately if a court comes to look at it, then what are the judges going
to consider what is a fair outcome? Importantly at what stage can a clean break be achieved
in the case. Thank you.