The Sheriff Principal, having resumed consideration of the cause, refuses the motion of the defender and appellant made at the bar to be allowed to amend his defences in terms of his minute of amendment, no. 28 of process; refuses also the appeal and adheres to the interlocutor of the sheriff dated 11th March 2002 subject to the following amendments:
reserves meantime the question of expenses and appoints parties to be heard thereon at Aberdeen Sheriff Court on 2003 at .
- The salient facts as disclosed by the sheriff's findings in fact were as follows. The pursuer is aged 47. She resides in the former matrimonial home and is qualified as a chiropodist. The defender is aged 53. He resides at an address in Aberdeen and is unemployed. They were married on 29th July 1978 and there are four children of the marriage, namely Laila (23), Leisa (20), Sarah (17) and Pery (14). The pursuer was awarded custody of all four girls on
4th February 1994. The parties had earlier separated on 27th February 1993 and they have not lived together since.
- From the date of the marriage in 1978 until 1985 the parties lived with the pursuer's mother rent free. The pursuer was employed locally as a chiropodist while the defender was employed as an officer in the Iranian Merchant Navy. As a result of being able to stay rent free with the pursuer's mother, they were able to save towards the purchase of the former matrimonial home which was bought in 1985 for £29,500. The title to the property was taken in the joint names of the parties. They did not need a mortgage to buy the house but the pursuer's mother lent her £3,000 towards the purchase price. This loan was repaid by the pursuer in about 1998 from funds which she obtained from cashing in a life assurance policy which she had taken out in about 1978. Before the separation various home improvements were carried out at the matrimonial home, some of which were paid for jointly by the parties.
- The defender's tours of duty lasted between six and nine months. It was not his practice to send money home while he was away, but rather to bring home a sum of money with him. He would bring home with him sums of money averaging approximately £1,500. At this time the parties had a joint bank account with the Bank of Scotland. The defender also brought home various gifts for the pursuer and the children. The pursuer herself continued working during most of the marriage in order to contribute towards the support of herself and the children. Her mother helped with child care.
- After a period of leave in the United Kingdom, the defender was called for duty by his employers on 15th December 1992. But he refused to travel back to Iran. Thereafter disciplinary action was taken against him, in consequence whereof he was left with no pension rights whatsoever. Since the separation of the parties on 27th February 1993 he has not contributed to the upkeep of the former matrimonial home nor has he paid for any home maintenance or home improvements nor has he paid any aliment in respect of the pursuer or the four children.
- The pursuer is employed part-time and in the tax year to 5th April 2001 her gross pay amounted to £10,916.03. With effect from 30th January 2001 she was entitled to Working Families Tax Credit on behalf of the family at the rate of £48.72 per week and she was also in receipt of Child Benefit in the sum of £26.90 per week. Her mother gives her financial assistance when required as well as assisting with child care after school. Had she not had the children to look after, the pursuer would have been able to seek full-time employment. She has a personal retirement plan which had a surrender value as at 27th February 1993 of £6,122.53 and a separate life assurance policy which had a surrender value as at the same date of £231.30.
- The defender has remained in Scotland since the separation. Following the loss of his job he studied for and obtained a B.Eng. and a M.Sc. degree in Civil Engineering. Despite these qualifications he has been unable to obtain employment. He incurred debts to the Student Loans Company of £5,020.52 and to the Bank of Scotland for £5,500, both in respect of study loans. The former loan is not repayable until he has earnings in excess of £1,482 per month. But the latter loan is now repayable and the defender is under pressure from the bank to make repayments. His sole income is Job Seeker's Allowance of £106 per fortnight. He has the tenancy of a council flat for which the local authority pays the rent. He cannot afford to go to Iran to look for work and in any event there is high unemployment there, even among University graduates. At the date of separation he owned a property in Iran which it appears he had purchased from his mother in 1992 for a sum of money, the Sterling equivalent of which was £6,000 or thereby. That was its current market value at the relevant date (see page 15) and when the sheriff issued his judgement on 11th March 2002. The defender suffers from long-standing stress induced anxiety associated with a degree of depression and difficulty in making satisfactory relationships with others. He also suffers from a degree of hiatus hernia, tinnitus and deafness.
- As at the relevant date the former matrimonial home had a value of between £55,000 and £58,000. As at January 2001 the property had a value of between £58,000 and £64,000. The eldest daughter Laila works away from home but often returns to visit the pursuer and her sisters. The next child Leisa is a student who lives away from home during the term time but stays at home during the holidays. On 11th March 2002 the two youngest daughters were still at school. The pursuer's mother lives nearby but, if the former matrimonial home were to be sold, it would not be a realistic proposition for the pursuer and the children to go and live with the pursuer's mother. The children want to remain living at the former matrimonial home and would be very upset by its sale. Finally, the sheriff found that the defender did not want to have the former matrimonial home sold at present or the children put out of the house against their wishes.
- It appears from the pursuer's second plea-in-law that the legal basis upon which she sought an order for the transfer to her of the defender's interest in the former matrimonial home was that such an order would be justified in terms of section 9(1)(b) and (c) of the Act. But towards the end of article 4 of the condescendence there is an averment to the effect that the order was justified in terms of section 9(1)(a), (b) and (c), and it appears from his summary of the submissions of parties' solicitors that all three principles in section 9(1)(a), (b) and (c) were canvassed before the sheriff. In his judgement he then considered these at pages 15 to 17 where he said:
In deciding the appropriate orders to make for financial provision, regard must be had, first, to the principles set out in Section 9 of the 1985 Act. Section 9(1)(a) is concerned with the net matrimonial property, the net value of which should be shared "fairly". In terms of Section 1(2) the net value is the value "at the relevant date", which in this case is agreed to be 27 February 1993. The relevant matrimonial assets may be summarised as was done by (the defender's solicitor), as comprising the matrimonial home at Lilybank, Aberlour; the retirement plan and assurance policy of the Pursuer; the house in Iran; and the articles listed in paragraph 6 of the Joint Minute (no 24 of process) which also helpfully details certain values. (In regard to the items listed in paragraph 6, it should however be noted that I accepted the Pursuer's evidence that the 6 gold bangles were returned to the Defender by the Pursuer prior to the separation of parties - see finding in fact number 36).
By virtue of Section 10(1), the net value of the matrimonial property is shared fairly when it is shared "equally" or in such other proportions as are justified by special circumstances. So in the absence of special circumstances, the calculation of fair sharing would simply involve the splitting into two equal shares of the total net value at the relevant date. Guidance on what constitutes "special circumstances" is found in Section 10(6)(a) to (e), where it is important to note that those sub-sections are expressly stated to be "without prejudice to the generality of the words", and are therefore not exhaustive.
So far as the provisions of Section 10(6)(b), - "the source of the funds" - are concerned, regard must be had in my view to the loan of £3,000 from (the pursuer's mother) towards the purchase of Lilybank - which loan has been repaid by the Pursuer through her efforts alone. The provisions of Section 10(6)(d) regarding the nature of the matrimonial property and the use made of it are also relevant here.
In regard to the provisions of Section 9(1)(b), with which fall to be considered the provisions of Section 11(1) and (2), it is to my mind pertinent in this context to consider the Pursuer's roles throughout the marriage as a breadwinner, initially jointly, but latterly on her own; as a housekeeper, latterly in sole charge of maintenance and upkeep of the matrimonial home; and as mother of the four children of the marriage. I therefore hold that "fair account" must be taken of the economic advantage derived therefrom by the Defender, including the opportunity thereby to acquire the property in Iran, and of the economic disadvantage suffered by the Pursuer in the interests of the Defender and the family.
Although Leisa and Sarah are now over 16 (Sarah only just so), Pery will be under that age for some time and so the provisions of Section 9(1)(c) remain relevant.
As (the defender's solicitor) rightly reminded the Court, in making any order the Court has not only to make an order justified by the principles set out in Section 9 of the Act, but must also make an order that is "reasonable having regard to the resources of the parties" (Section 8(2)(b)). When the two-fold test is applied to the present case, and mindful of the authorities cited supra, I have come to the view that a fair division of the matrimonial property is one that will give the Pursuer sole title to Lilybank, where she can live indefinitely and provide a home for the children of the marriage for so long as they wish. (That latter aspect, at least, is in conformity with the Defender's expressed preference at the end of his own evidence.) Given the Pursuer's age, current income, and earning prospects, she should also keep her retirement plan and assurance policy. The Defender for his part will retain ownership of the property in Iran. For completeness, I should perhaps add that I was not persuaded of the merits of a via media such as propounded by (the defender's solicitor): it is now time for a clean break, to enable all concerned to put the past behind them and to move on.
- In his interlocutor dated 11th March 2002 the sheriff reserved the question of expenses. At a subsequent hearing on 20th March 2002 he found the defender liable to the pursuer in expenses.
- On 3rd April 2002 a note of appeal was lodged on behalf of the defender by his solicitors in which it was stated that he appealed on the following grounds: