By Daniel Keane
The Supreme Court has preserved a €2.148 million lump-sum award to a husband in divorce proceedings, but rejected the High Court's reasoning that €1.648 million of it should compensate for a wealth gap and possible loss of self-esteem.
The anonymised couple married in 1994 and separated in 1999. A 2001 judicial separation settlement divided substantial assets and was intended to constitute proper provision in any later divorce, subject to court approval.
The wife, who had built a successful travel-related business, began divorce proceedings in 2003. The husband argued that he had not received full financial information when the 2001 settlement was negotiated and sought further provision.
The High Court found no bad faith or deliberate concealment by the wife, but concluded there had been an information deficit. It awarded the husband €500,000 on that basis. It separately awarded €1.648 million after the wife's business interests were sold in 2006, partly because of concern that a large disparity in wealth could affect the husband's self-esteem when caring for the children.
Mr Justice Fennelly, delivering the Supreme Court judgment, held that compensation for loss of self-esteem was not a proper basis for financial provision under the Family Law (Divorce) Act 1996. The High Court had already found that the husband's income and assets were sufficient and that both parties could maintain their previous standard of living.
However, the Supreme Court also found that the original €500,000 adjustment for deficient disclosure was too low. Information available by 2006 indicated that the wife's companies had been worth substantially more in 2001 than the figures then used in negotiations suggested.
Rather than send the case back for another hearing, the court treated the entire €2.148 million award as the appropriate adjustment for that information deficit. It set aside the separate €1.648 million award while substituting €2.148 million for the original €500,000 figure.
The court also left child maintenance at €7,000 per year.