What is Special Contribution in Matrimonial Finance?

In divorce under English Law, the Court begins with a 50:50 starting point when considering a financial settlement. The court then decides whether there should be a departure from equality. Contribution is one of the factors which the court takes into account, however in most marriages, need takes priority and contribution plays little part in deciding the outcome. Furthermore, the longer the relationship, the less importance is attached to contribution. There are however circumstances where  a special contribution cannot be overlooked. When such circumstances arise, a case for a special contribution can be made.

What are the Court’s views on Special Contribution?

The Court’s main objective when making decisions is fairness. Therefore, the court will focus on each party’s need. Where children are involved the Court’s primary consideration, will always be the welfare of the children.

These considerations derive from Section 25(2)(f), of Matrimonial Causes Act 1973 which requires the court to have regard to the contribution that each party has made, or is likely to make in the foreseeable future, to the welfare of the family.

What qualifies as a ‘special contribution’?

Fundamentally, the term "special contribution" describes the exceptional financial contributions made by one party to the marriage. These contributions can arise in the following circumstances:

• Exceptional financial success during the marriage;
• Portraying business or entrepreneurial genius ; and/ or
• Possessing truly unique skills and talents.

For the courts to warrant special contributions in a case it would particularly focus on evaluating the contribution itself. To be deemed ’special,’ these contributions must demonstrate truly outstanding qualities for the Courts when considering balancing against a considerable move from a 50/50 divide.

What is my case for special contribution?

A special contribution may impact on the final settlement. Some examples include: 

• Charman v Charman No.4 [2007] 1 FLR 1246, the net assets were in the region of £131 million. The court recognised that the husband contributed greatly to the marriage as a result of his financial ingenuity. The judge awarded 63.5% of the assets to the husband and the wife received 36.5% of party’s assets. 
• Cowan v Cowan [2001] 2 FLR 192, the net assets were in the region of £11 million. The court judgement recognised that the husband by his special skill and effort had accumulated substantial wealth. Thus, describing his argument as ‘stellar’, the court justified the departure from equality, awarding the husband 62% and the wife 38% of the marital asset pot.

Parties wishing to make an argument for special contribution should seek legal advice as to the merits. 

Please get in touch with Johnson Astills today and we would be more than happy to discuss your requirements further. Please call us at our office in Leicester on 0116 255 4855 or our office in Loughborough on 01509 610 312 and ask to speak to a member of the Family Team. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.

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