May 11
9
Monday Morning Bulletin
Ladies and Gentlemen
Please find attached this week’s Bulletin which contains the following points:
- Commodity prices suffer their worst week for two and a half years on fears of stalling global recovery
- Positive US jobs news helps equity markets recover some ground
- Threat of Greek default sparks another round of eurozone uncertainty
- Bank of England holds interest rates as austerity measures and higher prices bite
- Income opportunities remain for savers prepared to take additional risk
If you need any further information or would like to book a one to one appointment please call me on 07971 362558 or email me at joanne.hill@sjpp.co.uk.
My Website www.jlhill.co.uk
It is no secret that fewer people are getting married. In 2009, the latest (provisional) figures available (again statisticians, why the delay?) 231, 490 couples said “I do”, the lowest since 1895. To put it another way, 8.4 people per 1,000 in 2009 compared to 8.7 in 2008.
Neither is it a secret that the divorce rate is high in the UK – but falling. There were 113,949 divorces in 2009 (again, the latest stats they have) with 10.5 people per 1,000 of the married population filing for divorce compared to 11.2 in 2008. Estimates suggest divorce for around 33% of marriages.
I regularly quote statistics so I spent a bit more time poking around the ONS site to see what I could find and I unearthed some interesting figures. It really is incredible what is there when you look for it, though not always obvious where to look. I wonder what the latest (2009) stats are for how long it takes people to find what they want on a statistics website?
Civil ceremonies accounted for 67 per cent of marriages in 2009 – so fewer people are worried about the religious side of marriage when tying the knot. In addition, 16% of young people (aged 16 to 24) with no religion co-habit. They represent the largest group of co-habitees so it seems there is no end in sight to the trends above, with fewer church weddings and fewer people getting married. And with fewer people getting married, there will inevitably continue to be fewer divorces.
More people get divorced aged between 40 and 44 than any other age (page 2). And as I was typing this, what then happened by complete coincidence, I swear, is I saw a Tweet which stated: “In that last year, 2.3 million people aged 45-64 lived alone”, according to the Office of National Statistics. The really staggering figure behind that is that is has risen dramatically in nine years: the figure was 1.7 million in 2001. It then asks the question: “Divorce or choosing to be alone?” Have to admit I have not been able to find the exact data on this but I have no reason to doubt a Daily Telegraph journalist.
So are these trends linked? I guess when I have talked about marriages going down, and divorces going down, I have simply assumed that it is “balanced” by more couples co-habiting, either before/instead of a wedding or after finding a new partner when a marriage has failed. What I have perhaps given less thought to is those in their 40s or 50s who are divorcing and then spending their time living alone. Should then we be offering additional support to those going through a divorce for what comes after? It might not be that they quickly get into another relationship or are kept busy with young children to look after. They may be left psychologically scarred by the breakdown of their marriage or relationship. They may find a few years down the line, when the children leave home, they are left on their own and without the confidence to go out and meet people. Or, of course, it could simply be that many more people are happy to just be on their own and wait to see if someone new comes into their life.
Whatever the reason, I think family lawyers should give thought to the level of support they give to a person going through a divorce, not just on the legal front for the here and now, but their broader well-being in the longer term to avoid “divorce casualties” becoming a new statistic to be tracked.
Andrew Woolley
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RSPCA launched a campaign last week called PetRetreat. It’s a fostering service for pets effectively. A network of fosterers can look after a person’s cats, dogs or whatever, so that they can escape domestic violence. Once they are settled in a new life, they can claim back their pet.
The move came because some victims of domestic violence feel trapped in their situation because they don’t want to leave – leaving the animals behind. Because they have nowhere to take them and no one else to look after them, they go on living a wretched life as a victim of domestic violence.
A nationwide appeal for pet fosterers has gone out. If you are interested in helping, you can find out more here.
It’s not something I had thought about before. Are there lots of people who can’t leave because they are worried about what will happen to the dog? Highly likely bearing in mind we are a nation of animal lovers. I guess it is not just the wrench of leaving them behind but also the fear that, in extreme circumstances, an abusive partner might harm the pet. It is difficult enough for someone in a violent relationship to leave in many cases so anything to help them should be welcomed.
Pets do play a prominent role in any home and, therefore, in any split. They can be involved in “tugs of love” just as children can. Or they can be used as pawns in bitter disputes over settlements – just as children can. Courts may even be asked to rule on who “gets custody” of Tiddles or Monty.
We have a long way to go before our system evolves to that in force in the USA where some of the federal courts are starting to apply the concept of the best interest of the animal, a standard usually reserved for questions involving children. For example, a Virginian court has applied the rationale that a cat’s happiness took priority over the property rights between the parties.
It is a sore point for many UK pet owners to learn that our own system takes a somewhat more literal approach. Applying the rule at its most basic level, an animal is considered an asset the same as any matrimonial possessions. However, unlike the family car or computer, things often become much more complicated because with animals it can get more emotional.
Whilst there are many cases involving animals that end up in the court arena, thankfully most cases settle long before it reaches a stage where the court has to make an ultimate decision.
The best approach remains to try and negotiate an agreement as, unless the law changes, the best interest of the pet will not be considered and the pet will continue to be treated as the parties’ personal property. Read more on the topic in this article on the Woolley & Co website.
Andrew Woolley
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ADR seems to be a new buzz word in family law at the moment. Alternative Dispute Resolution has been mentioned much in context of family mediation, as mediation is an example of ADR. However, an alternative route to mediation is collaborative divorce.
I’ve talked about collaborative family law a number of times before but I think in the current climate there has been some confusion around collaboration, mediation and ADR, so it is worth mentioning again.
A big difference between collaborative divorce and mediation is that mediation involves a (hopefully) trained mediator sitting down with the two individuals to look at where there is common ground. They can help lead the estranged couple through sticky areas of negotiation with the aim of reaching a settlement acceptable to both parties without the need to go to court. If this does not work, other routes may still need to be explored and court time may ultimately be needed. In most cases the individuals will go to mediation having consulted a family lawyer about their case and / or they will need the help of their lawyer to draft a legally binding agreement after the mediation.
Collaborative divorce involves both parties and their respective solicitors signing up at the start to work on a collaborative process. This means they agree to work to a solution without going to court. Four-way meetings can then take place with both parties having their lawyer present. The key difference is this offers legal representation in discussions.
One of the main reasons perhaps that collaborative divorce still hasn’t kicked off in the UK as it has elsewhere is that both sides must have a lawyer trained in the collaborative process – and they are not always easy to find. One party may have a solicitor they have used in the past now and want to stick with them. If they do not have collaborative law training, the route of a collaborative divorce is not open to the couple.
The process can be more successful in the long term than using the traditional court based approach as the parties are more likely to adhere to resolutions that they have reached themselves through negotiations rather than having ones imposed on them by the court. Once agreement is reached, the lawyers can draw up a document that can then be submitted to the court for approval, giving it a legal seal of approval.
It can also be less costly as court time is not needed. However, legal representation is essential.
Collaborative law has proven to be particularly useful in cases where there is a family business as a going concern, with farming being a good example. There is a clear advantage to all in a business enterprise continuing while details are worked out on how assets will be split and how things will function in the future.
An experienced family law practice should be able to advise on whether or not the collaborative approach is right for you. For more details, please see our article on the issue.
Andrew Woolley
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Mar 11
30
Will families bear Budget brunt?
I always watch the Budget with interest. The pantomime that goes with it is often as entertaining as any comedy programme you’ll see on television. There are villains, cheers, boos and backstabbing. It is particularly entertaining coming soon after a general election where there has been a change of the guard. The former Government is always quick to stick the knife in about the state of the economy – an economy which we all know cannot be changed quickly and of which they were, inevitably, the architects.
After the lengthy speech and fiery (if a little pre-rehearsed) response from the Opposition, I look at the details of the changes and try to figure out whether I will be better or worse off. And years of doing this has taught me one inevitable truth: it’s all swings and roundabouts. You win some, you lose some. You gain a bit here but lose a bit there. Generally speaking.
I also, inevitably, look at the analysis to see how families will be hit to try and gauge the affect on your average family and any knock-on effects. I don’t mean in the context of whether a family law firm will see spikes in business in the near future as families in crisis are pushed over the brink by the Chancellor. No, more a case of being up on what is happening so that I can give an informed opinion if asked. Working in family law is not just about us giving sound, plain English legal advice.
So I read with interest a piece in the Observer this Sunday from think tank Resolution Foundation which suggests families with children will ultimately be the ones hit hardest by George Osborne’s measures announced last week (As an aside, I have always wanted to be a member of a think tank? How do you get to be in one?!)
The analysis looks at the effects on low and middle earners of measures in Mr Osborne’s budget, as well as the latest official predictions from the Office for Budget Responsibility on how wage rises will lag behind increases in the cost of living. And it suggests typical families with children will see their incomes fall by between 4% and 7% in real terms over the next year.
There are several factors contributing to this situation, they assure us. Inflation will outstrip earnings growth, changes to tax credit and, in particular child benefit, will hit many families hard, particular those with a single wage earner, for instance. So the “squeezed middle” will be squeezed more. I have no reason to doubt the analysis, despite the fact the chief executive is a former adviser to Gordon Brown.
Both Nick Clegg and David Cameron said positive things about helping married couples, and families more generally, before the general election. I would not say that either has specifically reneged on promises yet – but neither have either done anything significantly tangible to help strengthen family units either. It is no surprise that finances are among the biggest causes of tension in households. That’s why predictions like this one fill me with dread. More, and prolonged, financial hardship could be the nail in the coffin for some relationships. We need to be doing more to help those families in crisis while urging politicians to finally bring some good news to those caught in the middle of the economic crisis. All suggestions please to 10, Downing Street, London
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Mar 11
24
Stolen Identity …. or No Identity
Looking at the various press items over the past week we learn that credit and debit card fraud is falling but that identity theft is becoming more sophisticated and we are warned within an inch of our lives that there are enough people out there looking to steal our identity and have their way with our details to make us almost paranoid.
Well thankfully no one has stolen my identity and I religiously dispose of all personal and sensitive correspondence in the best way I know – it makes great fire lighters – but this week I realised that I almost don’t exist.
Why….. well my passport expired in December and as we didn’t take our usual winter holiday I overlooked sorting out a replacement, so guess what, solicitors acting for our business wanted proof of my ID as a new client to their firm, and I didn’t have any!
“Can you let us have a copy of your photo driving licence?” I was asked – No, I still have a paper one issued in 1978 with the two minor hiccoughs for speeding in the 80’s and 90’s. Having not moved house, there has never been a need to change – what else could I use?
Now we are no different as an organisation in that we need to ‘Know our Client’ so I know what is required, but since I have never been in a trade union, worked for an employer for the last 21 yrs, or shot bright orange bits of clay out of the sky for the past 10 years I don’t have anything with my picture on any more, so a bit of frantic searching came up with some alternatives, at least I wasn’t trying to borrow money, they would have wanted loads more.
There is a generation out there for which identity documentation is almost non- existent, my parents have no passports, the solitary bank card, no mobile phone or regular pc access, no photo cards at all and the challenges they have had giving a bank their money to look after has been horrendous, I hope I am not getting like them.
So this week I will mostly be getting myself a new passport, because you never know a lottery win this week might force me into going on holiday before Easter, and I don’t want to be held up.
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As April 6 looms ever closer, the more we can understand about the impact of the New Family Law Procedure Rules 2010, the better.
I think people do have a perception that the law is, more often than not, black and white. Guilty/not guilty. Divorced/married. It follows therefore that lawyers should all be very clear on what the rules are and how they should be applied. But when changes are introduced, often with little warning or consultation, all of us have to feel our way through to an understanding of the new guidance. That is the case with the increased emphasis on mediation that April 6 will usher in, with more couples forced to use mediation to reach divorce settlements rather than always reverting to the courts.
Just to kick things off nicely, the term ADR (Alternative Dispute Resolution) is being used more liberally now rather than mediation. Mediation is one of a number of ADRs, collaborative law being another. It is unfortunate that this appears to be a backwards step in terms of plain English.
One of the issues with this strategy is that if more people are using mediators, there will need to be more mediators – and indeed clarity on exactly who qualifies as an accredited mediator to avoid unscrupulous individuals simply cashing in. In pursuit of this, I did some research to see if I could find a working definition of what a mediator is, so we would know exactly what the standard is that people have to look for. There has to be a standard, after all, as people need to have confidence that these people know what they are doing.
It remains unclear if there is a definitive explanation. However, there is a suggestion that the Family Mediation Council (FMC) is to ask the courts to agree that a mediator is of a standard approved by the FMC. That likely means people who’ve attended courses approved by them and creating fully trained people who have attended a special one day “assessment meeting” course provided by ….the FMC. You can make your own judgements on that one.
Assuming we do reach a position of clarity on this, there is then the question of shortages. Family lawyers’ group Resolution is already suggesting that there could be a lack of suitably qualified and experienced mediators. A Ministry of Justice spokesperson suggests though that there are at least 600 family mediation services in England and Wales, and they did not expect capacity to be a problem. That means, at least, they must know what the criteria is to be a mediator!
For all your family law problems – speak to a specialist family lawyer. Liz Davies – Woolley & Co.
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Mar 11
21
Monday Morning Bulletin
Ladies and Gentlemen
Please find attached this week’s Bulletin which contains the following points:
- The issues of Japan dominated the headlines all week, as the effects of the tragic events were felt around the world
- The G7 group of leading industrial nations took steps to weaken the yen by selling a significant amount of the Japanese currency
- It was very difficult for investors to understand the possible implications, so markets were driven downwards by emotion and fear
- Andrew Green, manager of the SJP/GAM Managed fund, gives his views over the impact to long-term growth in Japan
- George Osborne, Chancellor of the Exchequer, delivers his second Budget this week with changes to National Insurance expected to be high on the agenda
For further details or for your own personal guide through the financial maze please call me on 07971 462558 or email me at joanne.hill@sjpp.co.uk.
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Mar 11
15
Inheritance fears to fuel prenups?
I read about a survey last week which suggests that an increasing number of parents are reluctant to leave money to their married children in case they get divorced and the other party gets their hands on a chunk of it.
The research shows 35 per cent of parents had concerns and did not want to leave assets to their children for fear some of it might be siphoned off by an estranged partner in any settlement. This was brought fully into focus for me when one in four parents said they had doubts whether their children’s marriage(s) would last. You can read the full story here.
Of course, marriage is a legally binding union. Couples have responsibility for, and a claim to, their partner’s assets once legally wed. If they split, a settlement takes account of the joint assets and how they should be split fairly. An inheritance would inevitably form a part of the pot to be divided.
In this day and age, with so many marriages ending in divorce, it’s an understandable concern for parents worried about their offspring’s marital status. However, is it not a bit of an extreme measure to leave nothing just in case someone else gets some of it further down the line?
The issue is not impossible (read more here about protecting your wealth) to get around and safeguards can be put in place to ensure that an inheritance stays with the intended beneficiary. The most obvious way is through a prenuptial agreement. Agreed in advance with both parties properly advised, it sets out any specifics that need to be taken into consideration if there is a split, like exempting, for instance, any inheritance from a parent. Whilst not yet 100% legally binding, there would have to be compelling evidence for a court to ignore it. There is also now case law backing the validity of measures set out in a pre-nuptial agreement.
It is interesting to note that the same survey showed 72% of parents said they would like to see pre-nuptial agreements become legally binding in the UK, as this would enable them to make gifts to their children, safe in the knowledge that if they later got divorced, the money would still benefit their child.
I have said it before and I’ll say it again – many people still perceive pre-nuptial agreements as unromantic and an issue to be avoided. My view is that they should be viewed like an insurance: you don’t get car insurance because you think you are gong to crash or have your vehicle stolen – but just in case you need it. However, there does now seem to be some momentum gathering for the law to be changed to make them legally binding in the UK as they are in other countries. This latest survey surely backs the view and I hope that change comes soon to give people more faith in their value.
For further information concerning the above please contact Liz Davies at Woolley & Co
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I think most people would agree it is worse for younger children. They rely on their parents for everything so any change to domestic circumstances has a profound effect. As children grow older and become more independent and self-sufficient, their day to day lives may be less affected if their parents go their separate ways. However, that is not to say it cannot have a significant impact on them as well.
We were all kids once and that gives all of us an understanding of what they go through, to a greater or lesser extent, depending on memory and experience. It means that when we as adults are trying to help them come to terms with adversity, either as a parent or as a professional giving a professional service to those close to them, such as a family solicitor helping a family though a divorce, we do what we can to help.
That is why I am always so incredibly thankful for the extraordinary resources out there to help professionals and parents help children and young people in difficult times. It doesn’t need to be a divorce, it can be any number of different situations, but having experts or experienced voices steer us in a certain direction or give us insight into what is happening is invaluable.
As I have said in the past, as a responsible family law firm, I feel it is our duty not just to offer world class customer service and legal advice, but also to help where we can on wider issues. Sometimes this can just be pointing people towards other professionals or available resources.
The Parent Channel is just one of those resources. Wide ranging, relevant, well presented, and challenging, it is an invaluable resource. It was recommended to me recently and I would thoroughly recommend it to others.
Another worth noting that I have recently become aware of is Got A Teenager. The clue is in the name really. Teenagers can be a worry on so many fronts. Having a source of advice and forum to share experiences can be a great help. Another to which I was introduced some time ago and which I feel offers a fantastic service is www.onlydads.org, coupled with sister site www.onlymums.org. Both are great supports for single parents.
Please pass on these links for me. The more families who are aware of them, the better. I am also interested to hear of any other sites offering advice for families and parents that I can add to my growing library of resources. Helping families is at the core of what we do, not just giving them legal advice.
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