Friday, 15 February 2013

Religion and Divorce: Who should have the final say?


 Is Re AI and MT really a significant decision?

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The case involved a Jewish couple in their twenties who were separating and who asked the Court to allow them to refer their dispute to the New York Beth Din, or Jewish religious court, to resolve the issues. The family was international and so the issues included access to the two children of the family, the father having issued Hague Convention (Child Abduction) proceedings in this country for the summary return of the children to Canada, as well as financial provision and distribution of assets and the provision of a Get, or Jewish religious divorce.  A more detailed summary together with the judgement can be found here.

The judgment of Mr Justice Baker in this case was not a traditional one setting out a decisive ruling on financial distribution of assets or other issues arising out of the end of a marriage, but rather provided an explanation for the highly unusual development of the case and the way in which the parties eventually reached a settlement.

There has been some speculation in the media that this will pave the way for the more active involvement of other religious authorities in the settlement divorces and, in particular, might allow for Sharia Courts to play a more active role in civil divorces. But how significant is this case in shaping the relationship between civil and religious courts when it comes to divorce?

Divorcing couples are being encouraged to use alternatives to litigation to resolve their differences and the Judge recognised this in this case.  However, he could not agree to the parties request that they allow all this issues to be resolved by the Beth Din because the nature of that arbitration is binding and it would have ousted the jurisdiction of the English Court.  However, the Judge found a way to allow the couple to resolve their differences within the framework of the English Court system whilst also respecting their orthodox religious culture and devout wishes .  His solution was this:

  • To allow the parties to travel to New York for non-binding arbitration before the Beth Din (the mother’s passport was being held by virtue of the Hague Convention proceedings and so she needed permission to leave the country). Any agreement reached would be referred back to the English Court for final approval.

  • To satisfy himself that the principles which the Beth Din would use to determine the issues relating to the children would be in line with English law and specifically the paramountcy principal which puts the welfare of the child above all else.  Furthermore, the Judge made it clear, at an interim hearing in relation to contact, that, if he considered a decision of the Beth Din was not in the best interests of the children then he would not approve it (para 18 of the judgement).  The judgement does not look at any other type of religious law or court, just that of the Beth Din and specifically the Beth Din in New York, which makes the media’s connections to Sharia law somewhat tenuous.

In September 2011, the Beth Din issued its ruling and the case returned to the English Courts for consideration and approval (and, as it turned out, some final negotiations).  The Order was finally approved in April 2012.

Would the Judge make the same decision again?

Of significance to the Judge was the “profound belief” from both the husband and the wife that the Beth Din was the appropriate forum for their issues to be resolved.  In this context the Judge highlighted that, just because the circumstances of this case allowed for the couple’s religious beliefs to be respected within the framework of the English justice system, it did not mean that the Court would necessarily endorse similar proposals referring disputes to other religious authorities.  He said “Every case will turn on its own facts.

Furthermore, the case took a long time to arbitrate, much longer than the Judge had anticipated.  It was initially thought the process could be concluded in a matter of weeks but it in fact took 18 months for the Beth Din to release its ruling.  In that time two significant wider developments had taken place in English family law.

  • An ‘overriding objective’ had been introduced through the Family Procedure Rules 2010 which allowed the Court to use their case management powers to promote the use of alternative forms of dispute resolution.  Whilst this would appear to support the Judge’s case management decisions, the overriding object also emphasises that cases were dealt with ‘expeditiously’ and the Judge expressed concerns over the delays in reaching a final solution.  
  • A family arbitration scheme was launched by the Institute of Family Law Arbitrators. This provides couples in this jurisdiction with a method of alternative dispute resolution which was not available to the couple in the case in question when they made their request.  Part of the parties’ initial case was that the arbitration method, whereby a ruling is given by a third party selected by the parties themselves, was important to them and this could not be achieved in this country at that time.
It is therefore debatable whether the Judge, faced with a similar set of circumstances now, would make the same decision again.

Does this pave the way for other cases to be deferred to religious authorities?

If both sides could show that they were equally committed to submitting their case to their chosen religious authority, on a non-binding basis, and, provided that the Court was satisfied that the methods of that authority were not contrary to English law, particularly if children were involved, then this case does suggest that there is scope for other cases to be deferred to other religious authorities such as a Sharia Court. It would also be reasonable to expect any judge faced with a similar request to look at the practicalities and time estimates for deferring to the religious authority as well as the methodology so as to ensure the overriding object was being met.  How likely it is for such requests to meet with the Courts satisfaction is another question and one which would require a detailed analysis of both the facts of each case and the proposed religious authority.

It is also important to note that any decisions reached through another religious authority, with the permission of the Court, would not be automatically legally binding (as has been suggested) but would still be subject to the scrutiny and approval of the civil Courts. One party could not show up to civil divorce proceedings with a Beth Din or Sharia Court ruling and expect it to be upheld, particularly if there are objections from the other side.  In the final paragraph of his judgement Mr Justice Baker noted that he found the decision of the New York Beth Din to be in the interests of the children’s welfare and the financial terms were "unobjectionable". Were that not the case then he would have undoubtedly refused to make an order on those terms.

Furthermore, religious marriages, such as the Islamic nikah, are not always recognised by the state in this country, leaving many couples discovering, when they do want a divorce, that the law treats them as cohabitees.  If the marriage has been recognised by the state, i.e. it was conducted and registered in accordance with English Law, then only the state has the authority to dissolve that marriage.  This case does not change that.
 
Should religious courts play a greater part in civil divorce proceedings?

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Friday, 18 January 2013

UPDATE: Non-disclosure in financial remedy proceedings. The Family Court uses its teeth!


In November 2012, I looked at what the Family Courts can do if someone fails to comply with their obligations in relation to financial disclosure.  One of the powers the court has is to commit someone to prison and whilst this really is a last resort, the Family Court this week did just that when Mr Justice Moor sent Scot Young, a former fixer and millionaire property developer, to jail for 6 months.  The sentence had been issued back in 2009 as a suspended sentence and Mr Young had been given several opportunities since then to comply with his obligations.  This week the Court had had enough of his “absurd” and “next to useless” excuses. This is definitely something to keep in mind when advising clients about the consequences of providing full and frank disclosure in financial remedy proceedings.

Mr Young, is no stranger to the far reaching powers of the family courts with his passport being withheld in 2012 when he claimed he wanted to leave the country to undertake charity work.  Michelle Young, who is seeking the financial remedy against her estranged husband, hasbeen trying to get to the bottom of her husband’s money for years and a full hearing on her application is due later this year.

Thursday, 20 December 2012

The Divorce App: A good idea or inAPPropriate?


Is mobile technology bringing people together or driving them apart?

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There is no doubt that technology strongly influences the way we live our lives and finding love is no exception. Ten years ago, if you said you met your other half online, you may have raised a few eyebrows.  Today, online dating is not only socially acceptable but a multi-million pound industry with companies such as eHarmony and match.com competing for the best relationship and marriage statistics.  The internet, followed by the explosion in mobile technology, has made it easier to meet people than ever before.  And that is not the only area of our lives that has benefited from the mobile revolution.  You can now go shopping from your mobile to find the perfect first date outfit or search to find the most romantic restaurants and how to get there.  When it comes to finding love we now have access to all the information we could possibly need simply by reaching inside our pockets.

What about the end of a relationship? Can technology help to make a break up that much easier?  Should it?  The government has recently launched an app called “Sorting out Separation” to help people who are facing a divorce or the breakdown in a relationship. This may seem long overdue in the age of having an app for everything but it has come under criticism from those who are concerned that making divorce too easy could devalue marriage.

The app itself offers some basic advice on how to avoid conflict and provides a database of useful resources which the separating person might find useful with an emphasis on protecting children.  It covers everything from counseling to child maintenance and everything in between.  Many of the topics covered would often be raised in a first meeting with a solicitor.  Previous generations in a similar situation would have picked up the phone having no option but to consult a solicitor for clear guidance.  The next generation will have grown up in a world of WiFi, smart phones and super fast internet speeds with a universe of apps putting vast amounts of information at their fingertips.  Combine this with the upcoming cuts in legal aid and it is difficult to imagine that this app will not be well used by those trying to navigate the many legal and emotional issues they are suddenly faced with when a relationship ends.

But does making the process of divorce easier devalue the institution of marriage?  The app is not providing anything dramatically new, just presenting information that is already on the internet it in a new accessible format. What do you think?

Vote in the poll!

Tuesday, 18 December 2012

UPDATE: Gay Marriage – Government Announces Changes

The Government has this week announced its plans in relation to gay marriage, which is to become legal for most religious organisations should they decide to opt into the legislation. I considered some of the issues that gay marriage raised for practitioners shortly after the government’s consultation on this subject ended in June 2012. The culture secretary Maria Miller, who announced the plans on Tuesday, detailed what she described as a “quadruple lock” to allow same sex couples to marry but also to protect those institutions and individuals that do not want to participate in performing same sex marriages from the threat of litigation on the grounds of discrimination. The legislation is designed to recognise equality whilst protecting religious freedoms. The biggest objections to the announcement have come from those institutions that are to be explicitly excluded, the Church of England and the Church of Wales, where it will remain illegal for same sex couples to marry. They are claiming that Ms Miller’s announcement was a surprise as they were not consulted on their exclusion and there may be discussion of an amendment. After the summer debates in which the Church of England claimed gay marriage was “the greatest threat to the Church of England in 500 years” it is be difficult to comprehend them now campaigning to be included in the opt in legislation. Perhaps their real objections lie in the fact that they were not given the final word in how they are treated in the legislation or that they are being singled out in a very public way as being opposed to this progressive, and for many much welcomed, change to the law.

Wednesday, 21 November 2012

Non-Disclosure in Financial Remedy Proceedings. Show me your teeth!


Is the Family Court doing enough to discourage non-disclosure and are the penalties sufficient for those who blatantly flout the rules?

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If you have not heard about the case of Petrodel Resources Ltd& Ors v Prest & Ors then you must have been living under a family law rock!  It is not often that such a case causes such a divide within the judiciary and touches on everything from the fundamentals of company law to division of assets on divorce. I’d better give a (very) brief summary of the facts for the benefit of those under-rock-dwellers before I go any further:

The husband, Mr Prest, was appealing the decision of Mostyn J who had ordered that various UK properties owned by a company, of which the husband had complete control and was the sole shareholder, be transferred to the wife as part of the divorce settlement. The Court of Appeal upheld the husband’s appeal 2 to 1 with Thorpe LJ dissenting on the grounds that the company, and not the husband, owned the properties and so they could not be considered part of the matrimonial pot. The full Court of Appeal judgement can be viewed here.

There is very little parity between the reasoning of Thorpe LJ and Rimer LJ, with each Lord Justice sticking to their judicial guns and coming to completely dichotic conclusions.  So who is right?  Well, that is a question that the Supreme Court will no doubt consider and family lawyers will be waiting with cautious anticipation for the answer.

One item that was not in dispute between the judges was the lack of financial disclosure provided by the husband.  This was summarised by Mostyn J at first instance:

I have sought to make sense of the husband's factual case. Ultimately I have decided that this has been a vain task because the husband has failed so comprehensively to comply with his obligation to provide full and frank disclosure...”(para 12)

Whilst this lack of financial disclosure allowed for adverse inferences to be drawn, it did not provide a route to the impropriety necessary to pierce the corporate veil and get to the assets which were tied up in the company.  This left the family judges (Mostyn J at first instance and Thorpe LJ in the Court of Appeal) reaching for a way to implement a fair outcome whilst arguably stretching their powers under s.24 (1) of the MCA 1973 while the commercial lawyers applied the less flexible company law to the scenario.  There has been plenty of discussion about the impact this decision may have on the way in which family law is practiced and I do not intend to add further to that particular debate at the moment.  I want to consider what the Family Court can do to encourage full and frank financial disclosure and penalise those who willfully disregard that obligation.

The duty to provide full and frank disclosure is an inherent part of UK family law and is set out in the pre-action protocol annexed to Practice Direction 9A – Application for a Financial Remedy of the FPR 2010.  If a party fails to provide such disclosure, particularly if they have been specifically ordered to do so by the Court, then in addition to adverse inferences being drawn, that party could also face imprisonment, a fine, a costs order against them, inability to proceed with their application (Hadkinson Orders) or they might even face criminal consequences under the Fraud Act 2006.  These are serious penalties which family solicitors are obliged to inform their clients of at the outset of proceedings. But are they enough of a deterrent for people like Mr Prest who viewed the proceedings asa game in which he has sought to manipulate the process to his advantage” (see Thorpe LJ's judgement para 28).

Committal Proceedings are generally considered a last resort and there can be a great deal of disregard for court orders before the family court deploys those particular teeth, after all you are talking about taking away someone's liberty. But the Family Court has not shied away from using the threat of such a penalty in extreme cases.  Recent instances include property tycoon Scot Young who was ordered to explain the vanishing of his vast fortune (which occurred suspiciously at around the same time that his wife asked for a divorce) or face a prison sentence. The recently reported Winter v Winter also involved committal proceedings for willful breach of a Court Order to bring funds into this jurisdiction. In that case, Mrs Justice Baron said of the husband’s approach to the proceedings “the time has come to put an end to his disrespectful approach to a court of law. Courts are not toothless bodies. They make orders in order to regulate positions between human being so that society may work in a proper fashion.”

But is this enough to discourage those who see the family court as something to play with while tormenting their former spouse or should the family judges be quicker to show their teeth when they are faced with someone who obviously has no interest in playing by the rules.

What is your experience of the Family Court with non-disclosure and/or failure to comply with Court orders? Don't forget to vote in the poll on the right!