NI v AD [2025] EWHC 2997 (Fam)

Judgment date: 31 October 2025

https://caselaw.nationalarchives.gov.uk/ewhc/fam/2025/2997

Trowell J. Wife (NI) and husband (AD) cohabited for 7 years and share 3 children, aged 11, 9 and 8 years. This is a cross application for financial relief upon their divorce. Oral evidence was heard from husband, wife and two expert forensic accountants.

Total legal costs for both parties are £1.3m, largely met by the husband.

The wife wants

• The case to be treated as a sharing case, or at least the higher of needs and sharing.
• The net proceeds of the matrimonial home (c. £2.7m) to buy a property in the Ealing area to enable her to get all the children to school.
• Global maintenance of £180k p.a. until the youngest child completes university, ideally capitalised. This includes spousal maintenance for the next 12 years and all school and university costs.
• Her outstanding legal fees of £38k paid.

The husband proposes

• Equal division of the net proceeds of the matrimonial home (£1.35m each). Wife’s share of the proceeds covers capitalised spousal maintenance, which meets housing needs.
• Child maintenance of £29k p.a.
• Pay school fees.
• Costs order against wife due to wife’s litigation conduct (i.e. late filing of documents).

Findings/considerations by the judge

• This was a short marriage (seven years of cohabitation).
• This is a needs case, due to the value of the husband’s business assets.
• The Children Act proceedings found that the relationship between the parties was ‘characterised by coercive control by the father and his family.’
• £2m would meet the wife’s housing needs.
• The husband will need to rent, as the assets he will be retaining are illiquid – this has been agreed by both parties.
• Wife will need to pay her student loan herself: it does not require immediate payment and will be met by gradual payment from income over an income threshold.
• Wife’s net (employed) income capacity is £14.5k p.a. (Y1–3) and £30k p.a. (Y4+).
• Husband’s net (dividend) income is £168k p.a.
• Most of the husband’s wealth (i.e. from the success of husband’s Company A) is derived post-separation.
• At the date of sale, the value of Company C was £6m.
• Company I is valued at £3m.
• Company J’s value is nil.
• The company E multiplier is 8 (i.e. 8 times the annual revenue).
• The minority discount is irrelevant because the husband’s two brothers are not likely to buy the husband’s shares, and a third party buyer would be at a significant disadvantage to the brothers running the business.
• Husband has a director’s loan liability of £5.6m, with additional tax payable of £1.89m. Alternatively, this liability could be treated as income and taxed as such, or it could be paid off by the sale proceeds of Company A.

Judgment

• Husband does not need to meet university costs at this stage as it is uncertain what the costs will be, but he likely will need to when/if the time comes.
• The matrimonial home (husband is currently paying the mortgage) should be sold as soon as it is ready for sale. The proceeds to be divided equally (£1.36m).
• Wife has capital needs of £2.24m (to purchase and move into a new house for her and the children and pay solicitor fees), requiring her to have more than half of the sale proceeds of the FMH.
• H could draw by way of income on a sustainable pot of £3.7m.

Outcome

• W will receive £2.23m from the house less liabilities £80k. H will receive £3.8m, which is illiquid but income generating, plus £482k from the house. Spousal periodical payments from H to W of £73,300 p.a. for 3 years, reducing to £57,800 p.a. and terminating in June 2036 (timing linked to youngest child attending university), CPI linked and non-extendable. On top of that she will have her earning capacity. H will be left with £68k p.a. of dividend income. Husband is to pay £10k p.a. per child and all school fees (and likely university fees).
• If the child attends university, the £10k will be split 2/3 to child and 1/3 to wife.