Jones v Jones

Where a business was owned before the marriage, the court should exclude from sharing its value at the start of the marriage together with a notional element of passive growth, and share the rest.

Citation
[2011] EWCA Civ 41, [2012] Fam 1
Court
Court of Appeal (Civil Division)
Year
2011
Subject
Family Law
Topic
Financial remedies on divorce

Facts

Mr Jones owned a company before his marriage, which grew substantially during the marriage and was later sold for a large sum. When the marriage broke down, the question was how to treat the value of the company. The judge treated a large part of its value as non matrimonial property, because it was owned before the marriage, and awarded Mrs Jones a share of the rest. Mrs Jones appealed.

Legal principle

The Court of Appeal allowed the appeal in part. Wilson LJ said that the court should identify the value of the company at the date of the marriage, together with a notional increase in that value for passive growth during the marriage, and treat that as non matrimonial property. The rest of the value of the company, generated during the marriage, was matrimonial property and should be shared equally. The court also said that it might be fair to treat part of the non matrimonial property as subject to sharing, depending on the circumstances. The approach is often used in cases involving pre marital wealth.

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