News

Rebecca Christie comments on high profile divorces in Citywealth

  • February 19, 2020
  • By Rebecca Christie, Associate

With series two of BBC legal drama The Split currently airing, featuring the complexities of high profile divorces, it is timely to look at a developing issue surrounding celebrity divorce.

“The starting point is that both parties share the wealth created by their endeavours during the marriage”, said Rebecca Christie, family law associate at Hunters. However, it’s important to note that “future income is not subject to the sharing principle, as it arises from work done after the marriage has ended”. However, when it comes to royalties, they are an “interesting hybrid as they generate income in the future, based on work carried out in the past”.

“Where the royalty payments related to the band’s music created during the parties’ relationship, the court’s approach was to attribute a capital value to the income stream produced by the royalties, and provide for that value to be shared between the parties”, said Christie.

For the most part, the division between the parties was equal but for two streams it was not. “One of the royalty streams to which the husband was entitled was a share of the lead songwriter’s royalties. The court identified that there was an “element of gratuity” in this, as the lead songwriter was under no obligation to share his song-writing royalties with the other band-members. As gifts are not considered to be the product of a party’s ‘endeavours’, they don’t have to be shared on divorce. Taking this into account, only 75% of the capitalised value of this royalty stream was shared between the parties”, said Christie.

Read the full article in Citywealth here

Related News

Sep 15, 2021
Henry Hood recognised in the Citywealth Leaders List Top 100 Private Client Lawyers 2021
Sep 14, 2021
Hunters recognised as one of the 2021 eprivateclient Top Family Law Firms
Sep 06, 2021
Hunters Law shortlisted at the Family Law Awards 2021
Aug 02, 2021
Henry Hood examines the Thwaite jurisdiction where a client seeks adjustment of a financial remedy order in The Review
Jul 29, 2021
Eri Horrocks discusses what happens to the children when separated parents differ on relocating in WealthBriefing
Jul 28, 2021
Eri Horrocks discusses a practical guide to emergency private children cases in The Review
Jul 27, 2021
Eri Horrocks discusses what separated parents wanting to relocate within the UK need to know in Family Law Week
Jul 22, 2021
Hunters’ success in the Chambers HNW 2021 Guide
Jul 12, 2021
Jo Carr-West and Lara Barton discuss recent recommendations that would assist divorcing couples in managing the CGT implications of separating their financial affairs in Family Law Week
Jul 07, 2021
Hunters’ success in the 2021 Spear’s Family Law Index

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)