This is why billionaire wives no longer get all the cash and kids in a divorce | ||
| | ||
Several recent high-profile divorces, amongst some of the richest people in Britain, appear to signal that UK matrimonial law is tipped in the favour of the woman. (Or, now that gay marriage is legal, the non-working spouse.) For example, multi-millionaire Ecotricity founder Dale Vince is currently being pursued by his ex-wife for £1.9 million ($2.9 million) — around two decades after their divorced was first settled. Until his death in 2013, Scot Young — a fixer for the super-rich who sourced boats, houses and holidays for clients who could afford it — was pursued by his former wife Michelle for more cash after she claimed a £20 million ($30.1 million) offer was a "mockery" in court. There is no single legal principle governing UK divorce law. Assets gained during the marriage are not simply split 50-50 the way they are in the US and other countries. Instead, judges have a free hand to set divorce payments based on child support needs and the continuation of lifestyles to which the parties have become accustomed. This has created fertile soil for divorce lawyers with clients who want more than they're being offered by their exes. As socialite Ivana Trump once said: "Remember girls: don't get mad, get everything." Oligarchs and international billionaires come to the British courts because London is known as the "divorce capital of the world" within law circles. Making a divorce claim in England and Wales can get you a massive payout if you can get the right judge. For example last year, hedge fund billionaire Chris Hohn had to pay more than a third of his $1.5 billion (£981 million) wealth to his American-born former wife Jamie Cooper-Hohn, after a court battle in London. However, one of Britain's most prominent divorce lawyers, Ayesha Vardag, told Business Insider that the law has significantly changed from the "amiable chauvinism" of previous decades in which wives were not expected to have careers, and thus had claims on large parts of their husbands' wealth. Now women no longer automatically get huge payouts from their husbands or gain automatic custody of their children. Vardag, who celebrates the 10th anniversary of her law firm Vardags this month, has represented some of Britain's most high-profile cases from celebrities and members of royal families to high net worth and international individuals. The British High Court's ruling on the German heiress Katrin Rachmacher case, which Vardag represented, also changed the recognition of pre-nuptial agreements in England and Wales' law. BUSINESS INSIDER: Women seem to get a better "deal" when couples divorce in the UK, is this a fair assumption? AYESHA VARDAG: There is a huge shift away from the historical generosity for dependent women. It’s a wise move because the whole thing arose from fundamental amiable chauvinism of judges from paternalistic approaches towards wives. There was this whole vision of women being “looked after” by their husbands and that women had to give up their careers once they were married and that, somehow, by being married the economic value of a women had diminished. That attitude is being whittled away and it’s becoming tougher and tougher for women to automatically receive huge payouts as people are constantly challenging these assumptions. It used to be the gold standard for kids to go with their mother if there was a custody battle in a divorce case but that doesn’t happen as much any more. This is also down to looking at who can afford to look after the child and how much time they can devote to their child or children, as some women want to get back into full time work or already have a demanding job. There is a still a lot of generosity towards dependent spouses and if the dependent spouse is a man, they do tend to get a lot less than if they were a woman. However, this is changing. BI: How about the Dale Vince case? How is it possible for a person to claim money from an ex-husband when it has been decades after a divorce? AV: If you don't close off the financial matters in a divorce case, you technically leave that door open for your former spouse to get in touch and ask for more money, if you do happen to make a lot more in the future," said Ayesha Vardag, the president of her own law firm, Vardags in London. If there is a huge financial disparity between the two parties, even later down the line, the courts like to help with wealth distribution. Sometimes the courts want to do nice things like that but fundamentally, it was a technicality at the time that led to this case going to the appeals stage. In divorce cases I have seen, some people will maybe pay a lot more money out in a divorce settlement in order to close off the ability for a former spouse to seek further financial compensation in years to come. Above all, you need to put a tick through that box to close off future claims in the settlement. BI: Pre-nuptial agreements are becoming more and more commonly used, especially amongst the world's wealthiest. But what are the misconceptions around the contracts?
AV: The biggest misconception is that pre-nuptial agreements are not legally binding in the UK or that they’re easily broken. But the Rachmacher case changed that. [In 2010, the UK Supreme Court slashed German heiress Katrin Radmacher's settlement to her ex-husband Nicolas Granatino to £1 million ($1.5 million), from £5 million ($7.6 million), after ruling their pre-nuptial agreement was binding.] In the US, pre-nuptial agreements are vigorously applied, especially in New York, amongst the wealthiest but England is no less tough on upholding pre-nups than America. England is looking to tighten up the legislation but the Supreme Court established a precedence with pre-nups after the Radmacher case. BI: So why is Britain known as the "divorce capital of the world?" AV: Generally the law in England and Wales is a very generous jurisdiction for the claiming spouse. Ireland and Scotland are different. But it’s not a “free market.” You have to still adhere to having some form of residence here. But since London is such an international city, it has everyone from oligarchs, to the world’s wealthiest having a home here, whether a second, third or fourth home, and if a couple are going through a divorce, England is the most advantageous to file a claim. England’s legal system is one of our greatest exports, if people want to use our courts, then maybe we should facilitate that. BI: What have you seen as one of the most interesting trends in divorce cases over the last year? AV: A few months before the General Election, everything went really quiet. But as soon as the results were in, we saw a big upsurge in people seeking a divorce. I suppose they were looking at who would get into power and how that party's policies would affect their fortune. Also, it gave people something to talk about. All everyone could talk about was the General Election but when that was over, some people maybe just realised that they had nothing in common and nothing to talk about. Divorces cases for the wealthy don't usually revolve around the boom and bust cycle of regular people. Women, who are usually the initiators of a divorce, feel more comfortable in doing so if there is a prospect of economic prosperity and confidence that they will be financially stable. It's a great step towards freedom and an easier way to exit a relationship knowing that there will be a good financial pay off. Join the conversation about this story » NOW WATCH: 'The Little Prince' trailer looks better than anything Pixar has made in years  | ||
| |
DR Congo opens probe after NGO accuses UK firm of bribery | ||
| | ||
Kinshasa (AFP) - Kinshasa said it had opened an investigation after an NGO alleged a British energy company paid off an army officer accused of silencing critics of exploration in a Congolese national park. Global Witness, a British NGO, on Wednesday published scans of four cheques totalling $15,600 (14,000 euros) allegedly issued by a Congolese subsidiary of Soco International to an army major posted to Virunga National Park. The park, which lies in the east of the country, is a UNESCO World Heritage Site that is home to many of the world's critically endangered mountain gorillas. The NGO also published what it said was a receipt for the cheques signed by the officer on May 15, 2014, along with another dated April 30, 2014, confirming he had received $26,650 (24,000 euros). "The government... has ordered the opening of an inquiry to verify the allegations" made by Global Witness, an official statement said. It noted that Kinshasa had made a military detachment available to Soco since the end of 2014 after the company requested improved security for its personnel and facilities following a "series of incidents". Soco has previously denied breaching British bribery laws and condemned the use of violence and intimidation, and last year appointed law firm Clifford Chance to look into the allegations surrounding the Virunga project. In a statement Wednesday, it said this review had concluded that allegations of bribery were "substantially inaccurate", and that there was no evidence the firm or its staff promoted or supported any intimidation of opponents. However, there were "non-material instances where those with whom the company worked made payments in breach of group policy. These are subject to remedial advice". Global Witness says local and international NGOs have accused the army officer they name, and the troops under him, of beating, detaining and even killing opponents of Soco's work. In 2010, the Congolese government granted French oil giant Total and British group Soco permits to explore concessions in Virunga, but the resulting outrage caused it to suspend them a year later. Total and Soco subsequently agreed not to enter into the limits of the park, although the latter said it intends to finish a seismic study requested by the government. Once this is completed in the middle of 2015, Soco says it will have no further involvement in the concession. Join the conversation about this story »  | ||
| |
Koepka seizes lead at USPGA St. Jude Classic | ||
| | ||
Memphis (AFP) - Brooks Koepka's decision to squeeze in one more tournament before next week's US Open was paying off as the American grabbed the 36-hole lead at the St. Jude Classic. Koepka on Friday fired a three-under-par 67 at TPC Southwind in Memphis for a nine-under total of 131. He had a one-stroke lead over fellow American Austin Cook, who surged up the leaderboard with a six-under 64. New Zealand's Steven Alker led during the round, but faded late, finishing with a bogey at the par-three eighth followed by a double-bogey at the ninth in a 68 for 133. "I let it slip at the end," said Alker, who had moved as low as 10-under. "That's the type of golf course it is." Alker was still pleased to find himself in Saturday's final group as he searches for a first top-25 finish this season. "It's fun," he said. "I haven't been in this position all year. A bad finish, but a lot of positives." England's Greg Owen, who shared the overnight lead with Koepka and Ryan Palmer, signed for a 70 to join a group of seven players sharing fourth place on 134. Palmer posted a one-over 71 to fall into a tie for 11th. Koepka saw his form drop off after a solid start to the season that included a victory in the Phoenix Open. He added this week's tournament at the last minute in a bid to sharpen his game for the US Open, and said he was managing to stick to his game plan of playing less aggressive, more patient golf. "I'm just playing really solid," Koepka said. "Not really too exciting, just playing solid golf -- no mistakes." Five-time major champion Phil Mickelson, also tuning up for a US Open tilt next week at Chambers Bay, posted a one-under 69 that left him three-under and six shots off Koepka's lead. Mickelson saw a few birdie chances just fail to fall, but said he couldn't call the greens unfair. "They don't owe me anything," he said. "They're trickier because they're fast." Mickelson remained optimistic about his weekend chances since he "hit a lot more good shots" to reach the greens. "There aren't holes that are just 'gimme' birdies that can kind of kick-start your round," he said. "But if I can shoot five-, six-, seven-under par, I'll be right in contention on Sunday." Join the conversation about this story »  | ||
| |
Kayes leads Bangladesh resistance vs India in rain-hit Test | ||
| | ||
Fatullah (Bangladesh) (AFP) - Bangladesh opener Imrul Kayes hit an unbeaten 59 to thwart India on the fourth morning of the rain-ruined Test match at the Khan Shaheb Osman Ali stadium in Fatullah on Saturday. India declared their first innings at their overnight score of 462 for six in a bid to force a result in a match in which just 103.3 overs were bowled over the first three days. Bangladesh were 111 for three in reply when light rain and dark overhead clouds forced the umpires to halt play and call for lunch 10 minutes before the scheduled time. Left-hander Kayes had stood firm at one end, hitting 10 boundaries. Shakib Al Hasan (0) was the other batsman at the crease. Tamim Iqbal became Bangladesh's leading Test scorer when, on seven, he surpassed former captain Habibul Bashar's tally of 3,026 runs in 50 matches. Tamim, playing his 40th Test, moved to 19 before he was stumped smartly by Wriddhiman Saha off a delivery from spinner Ravichandran Ashwin, who shared the new ball with seamer Ishant Sharma. Mominul Haque missed a chance to equal a world record when he was caught in the deep off Harbhajan Singh after making 30. The left-hander fell 20 runs short of drawing level with South African AB de Villiers' feat of scoring a half-century in 12 consecutive Tests. But Mominul may have one more chance to join De Villiers if the hosts are required to bat in the second innings. Bangladesh captain Mushfiqur Rahim fell for two just before the rain interruption when he edged Ashwin to Rohit Sharma at leg slip. With only five sessions remaining and more bad weather forecast, the Test is heading for a draw. The teams are also scheduled to play three one-day internationals in Dhaka on June 18, 21 and 24. Join the conversation about this story »  | ||
| |
Iran asks Austria to secure nuclear talks against spying | ||
| | ||
Tehran (AFP) - Iran has asked Austria's government to take immediate measures to protect the cyber security of nuclear talks, media reported Saturday after reports emerged of suspected espionage at negotiation venues. Swiss and Austrian authorities said on Thursday they had opened separate investigations into alleged spying in hotels where the nuclear talks with Iran are taking place. IT experts pointed the finger at Israel, but deputy foreign minister Tzipi Hotovely on Thursday denied that its secret services were involved. In a statement, Iran's embassy in Austria, "demanded Austria's foreign ministry immediately provide all required security measures for the talks, including enhanced security for the venues as well as better cyber protection," the ISNA news agency reported. Iranian embassies in Vienna and Bern, in separate notes, also asked the Austrian and Swiss foreign ministries to inform them of "the results of spying investigations" by both governments on nuclear talks. A Russian-based security firm said on Wednesday the malware dubbed Duqu, a sophisticated spy tool believed to have been eradicated in 2012, appeared to have been used to spy on the nuclear negotiations. The investigations come as the clock ticks down to a June 30 deadline for an accord between Iran and world powers. Iran and the P5+1 group (Britain, China, France, Russia, the United States and Germany) have held numerous rounds of discussion since November 2013, mostly in Switzerland and Austria. Deputy ministers and experts from both sides are now in Vienna seeking to clinch a deal that curtails Tehran's nuclear programme in return for relief from punishing sanctions. Iran denies western allegations that it is covertly pursuing a nuclear weapon and insists its atomic activities are for peaceful energy purposes. Join the conversation about this story »  | ||
| |
