50/50 for capital and income?

Writing in the Law Society’s Gazette of 5 February, Kevin Hand considered whether now the 50/50 rule is firmly established as the accepted measure for the division of capital assets on divorce, this may in future apply to the division of income. Although a traditional one-third approach is no longer followed in respect of income, a new formula has yet to be agreed. However, in a High Court ruling, against which the husband has appealed, the spectre of the 50/50 rule being applied to income arose. The judge deducted the husbands mortgage payments and school fees from his net income and awarded the wife half of the rest, in addition to her capital lump sum. Kevin Hand considered the US concept of ‘community property’, which is akin to the system in a number of EC Member States, whereby the pool of assets acquired during the marriage is divided equally between the parties. It has the advantage of certainty but removes the discretion of the court. Those in its favour argue that it also saves on costs. It would have the effect of turning financial disputes within family law into little more than a formality Attractive to some – but not to others.