Legal News

The importance of rates of return on capital

Published on: 07 January 2015
Published by a LexisNexis Family expert

Table of contents

  • Original news
  • What does this case tell us about the court’s approach to the use of its powers under the Matrimonial Causes Act 1973, s 31(7)(a) (MCA 1973)?
  • What are the issues when considering the court’s power under MCA 1973, s 31(7B) around capitalisation?
  • What lessons can lawyers take from this case in respect of the funds and rates of return?
  • How might this decision affect future cases?
  • What should lawyers do next?

Article summary

Family analysis: How will the courts approach the issue of rates of return to be applied to capital? Philip Perrins, of 1 Garden Court Chambers, says important lessons can be learnt from a recent decision, including whether, in light of prevailing market conditions and the particular facts of the case, consideration ought to be given to applying alternative rates of return on a capital fund.

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