Richard Kershaw & Anna Roiser explore Wells sharing in Financial Remedies Journal
Richard and Anna’s article was published in Financial Remedies Journal, 1 July 2024, and can be seen here.
Richard Kershaw, Partner and Anna Roiser, Senior Knowledge Lawyer, in our Family & Relationships department discuss the evolving role of Wells sharing, marking 21 years since the landmark case Wells v Wells [2002].
Their article, published in the Financial Remedies Journal, reflects on how the courts have navigated the tension between the principle of fairness and the statutory preference for a clean financial break under section 25A of the Matrimonial Causes Act 1973. While Wells sharing the continued co-ownership of assets was once seen as falling out of favour, recent judgments suggest a renewed openness to its application, particularly in light of economic uncertainty.
The authors explain that Wells sharing is most often considered in cases involving illiquid or difficult to value assets, such as private businesses. In such scenarios, a clean break may be impractical or unfair, especially if one party would otherwise be left with only risk-laden or non-income generating assets. The courts have increasingly recognised that fairness may require a more nuanced approach, including in-specie division or deferred sharing arrangements, to ensure both parties share in the risks and rewards of such assets.
Richard and Anna highlight that while asset-holders often resist Wells sharing to avoid ongoing entanglement with their former spouse, there are situations where they may prefer it particularly when the asset is underperforming or difficult to liquidate. The article reviews key cases from 2023 that demonstrate how judges are applying Wells principles to achieve equitable outcomes, even where this means departing from the clean break ideal.
Ultimately, the authors conclude that Wells sharing remains a vital judicial tool for achieving fairness in complex financial remedy cases. They advocate for a case-by-case approach that balances the practical realities of asset division with the overarching goal of justice between separating spouses. As jurisprudence continues to evolve, Wells sharing is likely to remain a relevant and sometimes necessary feature of the family law landscape.
Read the full article on the Financial Remedies Journal's website [external link].
