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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Rattan v Kuwad (Rev 1) [2021] EWCA Civ 1 (11 January 2021) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2021/1.html Cite as: [2021] 1 WLR 3141, [2021] WLR 3141, [2021] EWCA Civ 1 |
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ON APPEAL FROM CENTRAL FAMILY COURT
HHJ OLIVER
BV19D08227/ZC19F04012
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE MOYLAN
and
LADY JUSTICE ASPLIN
____________________
Amita Rattan |
Appellant |
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- and - |
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Tushar Kuwad |
Respondent |
____________________
Mr J Swift (instructed by Fletcher Day Ltd Solicitors) for the Respondent Husband
Hearing date: 2nd December 2020
____________________
Crown Copyright ©
Covid-19 Protocol: This judgment was handed down remotely by circulation to the parties' representatives by email, release to BAILII and publication on the Courts and Tribunals Judiciary website. The date and time for hand-down is deemed to be 10:30am 11th January 2021.
Lord Justice Moylan:
Background
Proceedings
Maintenance Pending Suit
"(1) On a petition for divorce, nullity of marriage or judicial separation, the court may make an order for maintenance pending suit, that is to say, an order requiring either party to the marriage to make to the other such periodical payments for his or her maintenance and for such term, being a term beginning not earlier than the date of the presentation of the petition and ending with the date of the determination of the suit, as the court thinks reasonable."
This is an extremely valuable power because it enables the court to make an order to meet the income needs of a spouse and the children at a time when they might be in real need of financial support following the parties' separation and the commencement of proceedings. It is intended to provide the court with the ability to act expeditiously and to make an order which meets that need at an early stage of the proceedings when the evidential picture might be far from clear. It is a very broad statutory power which extends to the court making such order as the judge "thinks reasonable".
"Clearly there must be an empirical approach, since on an application for maintenance pending suit it is quite impossible practically to go into all the kinds of detail that the court can go into when dealing with the full hearing of an application for financial relief, and in the ordinary sort of case the registrars who deal with these applications will have to take a broad view of means on the one hand and income on the other and come to a rough and ready conclusion."
Adding that, what he described as "administrative expediency", could not "be allowed to work injustice in an individual case".
"An order for maintenance pending suit is, as Bodey J observed, 'a creature different in form and substance from substantive orders made upon the making of decree nisi'. It is designed to deal with short-term cash flow problems, which arise during divorce proceedings. Its calculation is sometimes somewhat rough and ready, as financial information is frequently in short supply at the early stage of the proceedings."
"… in determining the wife's reasonable needs on an interim basis it is important as a matter of principle that the court should endeavour to determine reasonableness according to the standards of the ultra-rich and to avoid the risk of confining them by the application of scales that would seem generous to ordinary people. Thus I conclude that it would be wrong in principle to determine the application on some broad conclusion that if the wife cannot manage at the rate of a quarter of a million a year, she ought to be able to. I think that it is necessary to establish a yardstick that more nearly reflects the standard of living which has been the norm for the wife ever since marriage and for the husband for considerably longer."
He next considered it relevant that "even on his own case the wife and children have been significantly undermaintained since the separation". The third factor he considered were the costs of the proceedings.
"even in the case of a family of unusual riches it would surely be wrong for the court not to look carefully and indeed critically at the suggested budget. Mr Pointer has said that the all-important particularisations in the bundle are the product of a team effort, the team members being the wife, her solicitor and her counsel. Well, it would be naive to ignore the psychology of the team members. Inevitably it is a litigation exercise. It is in part an advocacy exercise. There is every incentive to put figures as high as they reasonably can be put and perhaps some temptation to gild the lily. So I find that Mr Blair's most powerful submission is in his detailed exposure of certain elements within the wife's budget which are unjustifiable even in a 'super rich' case and which must result from excess of zeal on the part of the compilers of the budget."
Before leaving that authority, I would simply comment that the nature of the budget there being considered was very far removed from the list of income needs provided by the wife in the present case and as will be provided in the majority of cases. I return to this issue below.
"[124] From these cases I derive the following principles:
(i) The sole criterion to be applied in determining the application is 'reasonableness' (s.22 of the Matrimonial Causes Act 1973), which, to my mind, is synonymous with 'fairness'.
(ii) A very important factor in determining fairness is the marital standard of living (F v F). This is not to say that the exercise is merely to replicate that standard (M v M).
(iii) In every maintenance pending suit application there should be a specific maintenance pending suit budget which excludes capital or long-term expenditure, more aptly to be considered on a final hearing (F v F). That budget should be examined critically in every case to exclude forensic exaggeration (F v F).
(iv) Where the affidavit or Form E disclosure by the payer is obviously deficient, the court should not hesitate to make robust assumptions about his ability to pay. The court is not confined to the mere say-so of the payer as to the extent of his income or resources (G v G, M v M). In such a situation, the court should err in favour of the payee.
(v) Where the paying party has historically been supported through the bounty of an outsider, and where the payer is asserting that the bounty had been curtailed, but where the position of the outsider is ambiguous or unclear, then the court is justified in assuming that the third party will continue to supply the bounty, at least until final trial (M v M)."
Whilst I accept the general effect of these principles, as with all guidance, they clearly have to be applied in the particular circumstances of the individual case. In the present case, for example, it was not necessary for the wife to provide a specific maintenance pending suit budget. Her income needs as set out in her Form E matched her needs for the purposes of her application for maintenance pending suit. Further, not all budgets require critical analysis. The extent to which a budget or other relevant factors require careful analysis will depend on the circumstances of the case. I return to this below but, in summary, the wife's budget in this case did not require any particular critical analysis; it was a straightforward list of income needs which were easily appraised.
"[34] I would add to these principles what I said in G v G (Child Maintenance: Interim Costs Provision) [2009] EWHC 2080 (Fam), [2010] 2 FLR 1264, when determining an interim application under Sch 1 to the Children Act 1989."
'[51] … Interim hearings are an expensive exercise and, in my view, they should be pursued only when, on a broad assessment, the court's intervention is manifestly required. The jurisdiction to make an interim award is a very broad jurisdiction …
[52] It is a very broad jurisdiction but it is one which, as I have said, should be exercised when on a broad assessment the court's intervention is manifestly required. Otherwise parties will be encouraged to engage in what can often be an expensive exercise in the course of the substantive proceedings when the proper forum for the determination of those proceedings, if they cannot be resolved earlier by agreement or otherwise, is the final hearing when the evidence can be properly analysed and the parties' respective submissions can be more critically assessed.'
In my view, my remarks apply equally to applications for maintenance pending suit or interim maintenance under the Matrimonial Causes Act 1973."
Submissions
Determination
LADY JUSTICE ASPLIN:
LADY JUSTICE MACUR: