(11 months, 3 weeks ago)
Lords ChamberI too thank the noble and learned Lord the Minister for repeating the Statement today. I join other noble Lords tonight in paying tribute to the Reverend James Jones, previously of this House, for his work on and dedication to his report. I also pay tribute to the MP for Liverpool, West Derby, mayor Steve Rotheram and mayor Andy Burnham, along with so many others, for their tireless support over many years for Liverpool families in the pursuit of justice. I also pay tribute to the Liverpool fans and their families, led by Margaret Aspinall, for their admirable behaviour throughout the many disgraceful activities of so many vested interests, especially following the despicable statements from Kelvin MacKenzie—then editor of the Sun national newspaper, with, at that time, 4 million readers—publishing downright lies about Liverpool supporters. To this day, you will not find the Sun newspaper being sold on Merseyside.
I also declare my interest, being a long-term supporter, shareholder and past director of Everton Football Club. I was at Villa Park on that fateful 15 April 1989 for the other FA Cup semi-final, Everton v Norwich City, when I and others became slowly aware of the tragedy unfolding at Hillsborough through word dispersing from fans listening to that semi-final on transistors while watching the game before them. Heads began to turn to try to see screens in boxes behind portraying the dreadful situation. At the Wembley cup final, both sets of fans chanted “Merseyside” together, rather than support for their own team.
From both sides of Stanley Park I add my remarks to those of others—that the 97 have been poorly served by the justice system. That it has taken 34 years to correct and take cognisance of all the inequities of the procedure and the way the court system has played out is extremely disappointing. The continually misleading police statements has been rotten. The unequal resources and representation of official bodies funded by the taxpayer in comparison to the resources of ordinary Liverpool families has long been recognised as iniquitous. That the Government are now looking at the extension of legal aid is to be welcomed.
I also welcome the other proposals the Government have announced today. However, it is regrettable that the Government have not gone far enough in recognising that public authorities must act under a duty of candour at all times. I have listened to and noted what the noble and learned Lord said on this tonight. Widespread discussion and understanding is indeed needed, but many consider that this should be a matter of law.
The Government’s requirement for a code of ethics is still not strong enough. However, on another matter, it is important that the Government carry completely into law the office of the independent public advocate. These issues should be above party politics and football loyalties. The Government must commit to continually reflecting on what has been proposed after all these years. The Government, of whatever persuasion, must fulfil the vital promise that what happened to families by attending a football match will never happen again.
My Lords, I entirely echo the tributes paid by the noble Lord and commend him, if I may, on a dignified and memorable speech marking the important occasion tonight.
As I said a moment ago, I have tried on behalf of the Government to explain our present position. I repeat that no door is being slammed tonight. We should continue to reflect and discuss—perhaps offline, if I may use that expression—what is the best way forward. At the moment this is the Government’s view but, if others can come forward and explain that there are ways in which we can and should go further, that is a discussion that we are duty-bound to have collectively, to see that we can get this as right as possible. When we get to the Victims and Prisoners Bill, we will discuss further the scope of the independent public advocate and other related issues. I thank the noble Lord very deeply for his contribution today.
(10 years ago)
Lords ChamberMy Lords, I rise to move Amendment 6 and in so doing I propose to speak to Amendments 14, 15, 15A, 16, 18 and 19. They all stand together, forming one of the great pillars of the Bill, which is to seek to bring the law into line with what the Supreme Court in its judgments has more or less inched its way towards—to bring our law into line with Scottish law and the law applying in most of North America and the continent of Europe. In brief, it is that when the court is dividing up the matrimonial property, it should divide only the property acquired after the marriage by the couple. That would aid greatly simplicity and negotiation. Of course, it is not absolutely rigid. The family home will always be treated as matrimonial. I assure your Lordships that there are many provisions and precedents in the law for manoeuvring that situation to ensure that children, and usually their mother, stay in the home until they leave for university or careers. Incidentally, it is an interesting question whether one should treat children as ending their childhood at 18 or whether, as it is now so common for school-leavers to go to university or college, one should say that they need the protection of the law in that respect until they are 21.
There is, however, room for manoeuvre in this amendment. It is modelled on New Zealand and Scottish law and makes provision for how to treat property that was separate but has been increased in value by the assets or efforts of the other party. It is not the case that selfishness will be promoted. If one spouse works on the premarital property of the other, a proportion would be regarded as reverting to the ownership of the one who has put in the effort.
Again, this is a law, and this is an amendment, for the average couple. Very wealthy couples will always be able to afford lawyers and may make prenups and sort out the property between them. This is for the hundreds of thousands of couples who get divorced every year and are clogging up the courts and having to face each other in court without representation and with no clear guidance on what would be a fair and equitable settlement. If this Bill is passed, this provision in particular would give them a steer.
Noble Lords may have seen the report last week that a couple spent £1 million on lawyers and experts while fighting over the division of assets worth £2.9 million. There was a call to cut excess litigation costs and for cost caps. However, you cannot cut unless you make the law simpler and clearer and give couples a starting point for mediation. A cartoon in the Times yesterday showed two lawyers expressing shock and horror over the case I mentioned and at the fact that one-third of the assets was used up in costs. A final box in the cartoon says, “Absolutely shocking! When I did a divorce case, we used up half the assets”. This situation cannot be allowed to continue. It would be better to have broad-brush justice to help those struggling without legal aid and lawyers. I mean no criticism of the Supreme Court. Its judgments have been sophisticated and compassionate. But only the richest people reach the Supreme Court and the level of detail and sophistication that its judgments have provided does not help the man or woman in the high street battling over how to divide up their sparse assets, and where every penny spent on costs takes money away from the children.
Amendment 14 would simply change the date on which the valuation of the assets is calculated. I was advised by judges that I should make this change, which would change the date on which the financial order is made. Amendment 15 is consequential drafting. Amendment 15A would provide maximum flexibility by allowing people to carve up their assets by using lump sums, not necessarily chopping the house in half or having to sell it but using such assets as they have to reach a 50:50 settlement in their negotiations. Amendments 16, 18 and 19 spell out the ways I mentioned earlier of departing from a 50:50 split in certain circumstances, mostly where one party has put in extra effort or, indeed, for the protection of the children. Flexibility would be maintained but couples who know nothing about the law would be able to start with the presumption that whatever they acquire after they get married should be divided in half. I used to run an all-party parliamentary group on family law in this House and members of the public attended its proceedings. They did not always understand the niceties but one message came through from the hundreds of people who attended the proceedings. They said, “Please, can’t we have a booklet when we get married to tell us what our rights and duties are and what’s going to happen to us—what we will owe—when we get divorced? We ask people and nobody can tell us”. This is what I am trying to provide. Here is a guide to what will happen in the unfortunate event of people getting divorced. I beg to move.
My Lords, I thank the noble Baroness, Lady Deech, for her great efforts to allow the courts to bring certainty to this situation. As regards her last comment, I hasten to add that I do not think people enter marriage with the idea that they are going to get a divorce. Similarly, I do not believe that anybody turns up to work with the intention of fouling up, but these things happen. I support the amendment as it would bring certainty and enable couples facing divorce to be given clear advice on what their future situation will be and how the matrimonial assets will be divided. The starting point for this process should be that of defining what the matrimonial assets are.
My Lords, I will speak to Amendments 6 and 15A. As the noble Baroness, Lady Deech, said, Amendment 6 is one of the main pillars of the Bill. The revised proposed new clause embodied in Amendment 6 lays down the general principle that matrimonial property is to be divided equally in normal circumstances. That is the easy bit. The more difficult bit is defining with reasonable precision what matrimonial property is. The revised proposed new clause largely reproduces—we hope in a clearer form—what was in the Bill as introduced, although there are one or two significant alterations to which I shall draw attention. I recognise, of course, that in this context clarity is a pretty relative concept and that the proposed new clause is not particularly easy going.
One way of viewing the proposed new clause is as laying down three general principles in proposed new subsection (1), followed by four qualifications or refinements in the four paragraphs of proposed new subsection (2). The first general principle is that property acquired before marriage should not be regarded as matrimonial property but as—to use a clumsy but unavoidable term—non-matrimonial property. The second general principle is that gifts received from third parties or inheritances or intestate succession to the estates of third parties are also to be treated as non-matrimonial property, even if the gift is made, or the death occurs, during the marriage. I should treat the third general principle at some length because it differs from both the Bill as introduced and from the Scottish legislation embodied in the Family Law (Scotland) Act 1985, from which these provisions are fairly obviously derived.
I mention in passing that I very much regret that my noble and learned friend Lord Hope of Craighead cannot be here today because he, as former Lord President in Scotland, has unparalleled experience of the practical working of Scottish legislation. I have had the advantage of some discussion with him but I take responsibility for what I say about the law of Scotland, which will be far less learned than if it came from him.
(10 years, 4 months ago)
Lords ChamberMy Lords, I support the noble Baroness, Lady Deech, in her endeavours to update Section 25 of the Matrimonial Causes Act 1973, to bring consistency of approach to applications for financial orders, to bring greater clarity of outcome to the distressing ending of relationships, to reduce the stress to families and the combative nature of proceedings to cases, to simplify the existing complexity, to widen the debate outside the legal profession and to give Parliament—the lawmaker in our constitution—a voice and influence on what people want.
I would like to go on, as I cannot find much to commend in the present situation regarding divorce laws. The UK’s financial provisions on divorce are outdated and out of step with those of other jurisdictions. Financial provision swings between divergent spectrums of needs, equality, equity, various definitions of matrimonial property and interpretations of what seems about right on levels of division. We all know that fairness is in the eye of the beholder. The most unsettling nature of the present situation is that the public debate mainly takes place among lawyers, who, after all, have their own interests. Where are the lay members of the Law Commission and the Family Justice Council? I endorse the comments of the noble Baroness, Lady Deech, regarding proposals recently put forward by these two organisations, and I eagerly await the contribution from the noble Baroness, Lady Shackleton of Belgravia, in the hope and expectation that she will show her independence, partnered with her experience and expertise. I was very pleased to see the winning combatant appear in white at the judgment of the Radmacher v Granatino case, which shattered the cultural perceptions of the prevailing judge-made outlook.
I always caution myself on speaking when I have little knowledge but, having been through the situation and having seen the effects of relationship breakdown, I shall share a few comments. In the present situation, the only advice that I can give anyone is to make sure that you marry someone better off than yourself. I would like to be assured that mediation must become a central part of the process concerning any dispute that may have arisen outside these arrangements, or when there are no nuptial arrangements. Any outcome must have some regard to how each party has conducted mediation. I would like to see in any reform that the process has regard to the protection of assets—that is, that the cost of litigation is carefully assessed. This should not be a one-way bet in favour of any spouse, whereby there is no disadvantage to the least wealthy side to challenge at every step. It is disappointing to see that one side should be better off as a result of a relationship breakdown than if the parties had stayed together.
The most vital aspect follows from the reduction and removal of legal aid from the process. At an emotionally distressing time for families, it would be disappointing to see a banking-style development of the legal profession, whereby legal loan companies were to flourish for profit.
There must also be ability to protect wider family wealth from relationship breakdown and allow people to regulate their own affairs. This Bill will give greater certainty to nuptial arrangements by making them more categorical, with fewer exceptions and loopholes than the Law Commission would want. There must be more certainty provided, with certain fundamentals adhered to. We must be clear about what matrimonial property is, and the agreed interpretation of the parties in the relationship. Capital assets and income streams must be separated and clarified. I have seen SMEs, especially farming businesses, shattered when business assets have been built up over generations. As I said earlier, lawyers do not hesitate to apply a rule of thumb on the basis of an image of total assets and advise accordingly to their clients.
Finally, on the pace of change, we are all aware of how society has changed and how divergent cultural approaches do not make the changes easy. Nevertheless, in a will or trust situation, whereby a settlor may have made provision many years previously, there must be the ability to protect the assumptions under which provision was made. In this regard, it was not so long ago that the Law Commission advocated the extension of inheritance to cohabitees in a relationship. That would have a damaging effect on many wills and trusts, which must have the ability to future-proof people’s wishes, as couples may wish to pick and choose which level of commitment they may wish to abide by in their relationships. I am pleased that this Bill does not make any attempt to stray into that territory.
The Bill before your Lordships’ House today takes account of all these reflections and, no doubt, your Lordships will test them, and many others of their own, in Committee. We must guard against perfection being the enemy to the good. One small omission must not make a big enough hole in which we would want to bury this Bill. Parliament must now consider putting divorce and financial provision at relationship breakdown on a better footing than at present. I support the Bill and trust that the Government will enter into constructive participation.
(12 years, 1 month ago)
Lords ChamberMy Lords, I am aware that I have no experience and little knowledge on this subject so it is with trepidation that I make my few remarks. I approach the Bill in general agreement with the sentiments behind it. After all, it seems very benign. It is always important to recognise the current reality of more and more people’s lives. As I have been asked to act as a trustee for friends’ and relations’ trust settlements, I thought I should look at the Bill to see whether it had relevance to that. It was then that I began to have reservations. I am concerned that I have not seen any thought given to how it may affect the wills and settlements of others. My anxiety stems from the definition of “cohabitant”. In the Bill, it seems to ape marriage and civil partnership, applying to those in a relationship without a marriage or partner certificate.
The primary reason behind the Bill seems to be to save the surviving cohabitant the trouble of making a claim when, after all, the cohabitant did not want to go to the trouble of formalising their relationship. I make this rather provocative remark as I understand that more and more awards are being made against claims coming forward under the 1975 Act. Why not consider other cohabitants who would also be valid, such as friends sharing a property together who could equally claim to be disadvantaged on the death of one of them intestate? The surviving cohabitant may end up losing his or her home.
I have learnt that stringency has been further relaxed in that there is no longer recognition of dependency. However, there is no recognition either that this new provision in giving advantage to one must necessarily disadvantage another. Are these the only considerations? Could the Bill actually do harm? I thought I had better look at the Law Commission report, Intestacy and Family Provision Claims on Death. It was then that I understood why the definition of cohabitant has been so drawn up. It appears that the Law Commission has drawn it up so that cohabitants will be able, at some time in the future, to make claims in any relationship breakdown.
The Bill’s definition makes way for that extension; it is consistent with that objective and would serve as a first step on the path. Paragraph 8.78 on page 167 states,
“we had in mind the Cohabitation Report, in which we recommended that cohabitants who have children together should have an entitlement to financial remedies on separation, and that there be a minimum duration requirement of between two and five years for eligibility for those who do not have children”.
That is very contentious. The report mentions the increase in cohabiting over the past 10 to 20 years. However, trust provisions have a long lifespan and may well have been drawn up with a different outlook than pervades today. I am sure that the noble Lord, Lord Lester, will know far better than me the difficulties, hurdles and complexities in making amendments to settlements which have been silent on cohabitation. What advice would he give a settler who did not intend the desire to help descendants to result in provision being dissipated among cohabitants?
Has the Law Commission undertaken research into cohabitants, in the number and circumstance a person today may have? Your Lordships will recognise that it is barely a year since prenuptial agreements have been recognised in court, which was not a unanimous decision. Presumably, we should also be anxious that people have pre-cohabitation agreements. The objection may be raised that that is irrelevant to the Bill; I contend that that is naive. In reading the Law Commission’s report, I was also struck by the consultation undertaken on the issue. Paragraph 8.36, on page 160, states:
“There is no overwhelming consensus in favour of reform”.
I am concerned that the Bill is premature and needs to be examined for all its implications before proceeding.
(14 years, 1 month ago)
Lords ChamberMy Lords, I speak with a large amount of trepidation since I have very little knowledge and no expertise on the subject. I reflect that for many people caught up in the experience, divorce is something that they did not want or expect and that they are unwilling participants in the process. I should like to pay tribute to the noble Baroness, Lady Deech, whose words on the subject resonate most with me. The disagreements on the merits of differing contentions reflect the uncertainty surrounding financial dispute resolution—FDR—as legal teams, in seeking to provide advice, are compromised between interpretations of recent cases. It is an unsatisfactory state of affairs. I should like to support and give oxygen to the noble Baroness’s voice and to thank her for her perseverance in raising this matter, which affects, sadly, far too many of us.
I learn in today’s Telegraph that last year there was a 16 per cent increase in divorce. I also support the noble Baroness’s call for legislation. Surely it is for Parliament to pass legislation and to set the framework for the judiciary to interpret. I am sure that there are judges who are uncomfortable with the present position. For a person not to know to any degree where a case will settle or to be subject to the lottery of what view the judge attached to the case will take places unnecessary strain and leads to participants taking extreme positions in an endeavour to tilt the landscape. It will be difficult to define fairness in the present contentious climate. Fairness is an overclaimed parameter today. It is one of those motherhood and apple pie attributes against which no one can contend. I am reminded of the Bob Dylan song of my youth, “With God on Our Side”.
That London is described as the divorce capital underlines the fact that the UK is out of step. It draws one side to precipitous action rather than reconciliation and inevitably therefore to higher cost. I am left to reflect that divorce is seen by most high-value cases as a one-way bet for wives and that invariably the husband better agree to everything as he is only going to pay anyway.
I shall speak to only one feature: prenuptial agreements. This, more than any other feature, would be instrumental in dissipating the heat in FDR, would immensely simplify the process and largely negate the need to value assets. Thus it would reduce costs. It should not be necessary to have to await the slow progress of disputed cases setting case law to correct this anomaly. I will take my own advice and refrain from voicing further thoughts on what is indisputably the most dramatic aspect of life for far too many today.