Legal News

Private equity funds, trusts and non-marital resources in a sharing case (A v M)

Published on: 19 November 2021
Published by: LexisPSL
  • Private equity funds, trusts and non-marital resources in a sharing case (A v M)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?

Article summary

Family analysis: On a final hearing of the wife’s financial remedies claims, Mr Justice Mostyn held that private equity ‘carry’ is a hybrid asset, the sharing of marital assets should be limited as much as possible, parties should use their own resources (including non-marital resources) before a call is made on their ex-spouse and nominal periodical payments are contrary to the statutory duty to effect a clean break. Further, the court will add back excessive legal costs incurred by a party before equalising net assets, costs are a special case for add-back purposes and arguments to share in post-separation earnings or profits, or in assets which have already been divided and distributed, are untenable. The court reiterated that a party must negotiate openly, reasonably and responsibly otherwise they will suffer a penalty in costs. The court also held that in future cases there is no entitlement to anonymity and queried whether there ever was such an entitlement. Fiona Stewart, barrister at QEB, considers the implications. or take a trial to read the full analysis.

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