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Women challenge 'unfair' divorce settlements Women challenge 'unfair' divorce settlements
(35 minutes later)
Two women who say they were "duped" into accepting "unfair" divorce settlements are appealing to have them overturned in the Supreme Court.Two women who say they were "duped" into accepting "unfair" divorce settlements are appealing to have them overturned in the Supreme Court.
Alison Sharland and Varsha Gohil both argue their ex-husbands misled judges about how much they were worth.Alison Sharland and Varsha Gohil both argue their ex-husbands misled judges about how much they were worth.
If the court rules in their favour, it could pave the way for many more people to seek to re-negotiate settlements.If the court rules in their favour, it could pave the way for many more people to seek to re-negotiate settlements.
Lawyers for one of the husbands, Mr Sharland, said the provision he made for him wife was "fair and reasonable".Lawyers for one of the husbands, Mr Sharland, said the provision he made for him wife was "fair and reasonable".
However the lawyer representing both women, Ros Bever from Irwin Mitchell, said courts had turned a "blind eye" to dishonesty in divorce proceedings for too long.However the lawyer representing both women, Ros Bever from Irwin Mitchell, said courts had turned a "blind eye" to dishonesty in divorce proceedings for too long.
She said the outcome of the hearing, which starts on Monday and is expected to last three days, could have "wide-reaching" consequences.She said the outcome of the hearing, which starts on Monday and is expected to last three days, could have "wide-reaching" consequences.
Concealed assets
Ms Sharland, 48, from Cheshire, accepted £10m from her husband Charles when they separated in 2010 after 17 years of marriage.Ms Sharland, 48, from Cheshire, accepted £10m from her husband Charles when they separated in 2010 after 17 years of marriage.
She believed it to be about half of his fortune, but it later transpired the internet entrepreneur had lied about the value of his company, Appsense, and plans for a future flotation.She believed it to be about half of his fortune, but it later transpired the internet entrepreneur had lied about the value of his company, Appsense, and plans for a future flotation.
The financial press valued it at around £600m. In subsequent court proceedings Mr Sharland dismissed the valuations as "pure conjecture".The financial press valued it at around £600m. In subsequent court proceedings Mr Sharland dismissed the valuations as "pure conjecture".
The Court of Appeal ruled that the misleading evidence would not have led to a significantly different outcome.The Court of Appeal ruled that the misleading evidence would not have led to a significantly different outcome.
Analysis by Clive Coleman, legal affairs correspondentAnalysis by Clive Coleman, legal affairs correspondent
Today's cases go to the heart of the family justice system. They are about honesty when divorcing.Today's cases go to the heart of the family justice system. They are about honesty when divorcing.
England and Wales, and London in particular, is seen by many as the divorce capital of the world. The reason is that for most marriages of any significant duration, there is a 50/50 split of the couple's wealth.England and Wales, and London in particular, is seen by many as the divorce capital of the world. The reason is that for most marriages of any significant duration, there is a 50/50 split of the couple's wealth.
That means that there is a huge incentive not to disclose assets and to not put them into the pot to be divided up.That means that there is a huge incentive not to disclose assets and to not put them into the pot to be divided up.
A court order approving a financial settlement can be set aside if one person fails to disclose assets, but it must be what the lawyers call "material" non-disclosure - that's "significant" to you and me. In other words it must be such that the court would have made a different order.A court order approving a financial settlement can be set aside if one person fails to disclose assets, but it must be what the lawyers call "material" non-disclosure - that's "significant" to you and me. In other words it must be such that the court would have made a different order.
Some argue that means the courts have been too tolerant of people not disclosing their assets. Should the fact of the dishonesty itself allow one partner to re-negotiate the settlement?Some argue that means the courts have been too tolerant of people not disclosing their assets. Should the fact of the dishonesty itself allow one partner to re-negotiate the settlement?
This is the first time in a generation that our most senior court has looked at the issue. Expect some strong guidance.This is the first time in a generation that our most senior court has looked at the issue. Expect some strong guidance.
Varsha Gohil, 50, from London, accepted £270,000 and a car as a settlement when she divorced her husband Bhadresh in 2002.Varsha Gohil, 50, from London, accepted £270,000 and a car as a settlement when she divorced her husband Bhadresh in 2002.
In 2010, Mr Gohil was convicted of money laundering and jailed for 10 years. At his criminal trial, evidence revealed he had failed to disclose his true wealth in divorce proceedings.In 2010, Mr Gohil was convicted of money laundering and jailed for 10 years. At his criminal trial, evidence revealed he had failed to disclose his true wealth in divorce proceedings.
However, the Court of Appeal ruled that information that emerged at his criminal trial could not be used to overturn the couple's settlement.However, the Court of Appeal ruled that information that emerged at his criminal trial could not be used to overturn the couple's settlement.
Ms Bever, a specialist family and divorce lawyer representing both women, said for too long courts had "turned a blind eye" to spouses who conceal assets and mislead court.Ms Bever, a specialist family and divorce lawyer representing both women, said for too long courts had "turned a blind eye" to spouses who conceal assets and mislead court.
She said the outcome of the case would affect many people going through divorce settlements, including those involving "more modest" assets and sums.She said the outcome of the case would affect many people going through divorce settlements, including those involving "more modest" assets and sums.
'Fair and reasonable'
"To both women these cases are about a matter of principle and justice," she said."To both women these cases are about a matter of principle and justice," she said.
"Surely most people would hate to be in a situation where their former partner has been able to withhold information during their divorce proceedings; and for there to be no opportunity to challenge this when new information comes to light."Surely most people would hate to be in a situation where their former partner has been able to withhold information during their divorce proceedings; and for there to be no opportunity to challenge this when new information comes to light.
"The current situation sends out completely the wrong message in what is and is not acceptable in terms of disclosing financial information.""The current situation sends out completely the wrong message in what is and is not acceptable in terms of disclosing financial information."
Mr Sharland's solicitors, James Brown and Beth Wilkins at JMW LLP, said it would be inappropriate to comment in detail before the case had been heard, but added: "We are confident, however, that the Supreme Court judges will follow the example of their colleagues in the High Court and the Court of Appeal in agreeing that the provision made by Mr Sharland for both his family and his ex-wife was fair and reasonable."Mr Sharland's solicitors, James Brown and Beth Wilkins at JMW LLP, said it would be inappropriate to comment in detail before the case had been heard, but added: "We are confident, however, that the Supreme Court judges will follow the example of their colleagues in the High Court and the Court of Appeal in agreeing that the provision made by Mr Sharland for both his family and his ex-wife was fair and reasonable."