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No compensation for wife who gave up work

A recent Court of Appeal ruling has stated that a former wife who gave up work was not entitled to compensation as part of her financial settlement on divorce.   There will be no automatic compensation for divorcing spouses who gave up work during the marriage. Katriona MacFarlane, a 58 year old head teacher left her ‘promising’ career while still in her 40s when her new husband promised he would 'look after' them both financially. Dr James MacFarlane, now aged 74, filed for a divorce after 8 years of marriage. Mrs MacFarlane demanded that as part of the financial settlement she should receive an element of compensation for her lost career. During the course of proceedings in 2015, it was ordered that the wife should have half the proceeds of the house, plus a £140,000 lump sum from her husband. However, at the Court of Appeal, Mrs MacFarlane's barrister put forward the argument that the original judgement was flawed. There was no provision for her to be compensated for her loss of potential earning capacity, career development, or a pension entitlement in her own right. Mrs MacFarlane stated that on marriage her husband promised that if she gave up her permanent employment and career, he would look after her financially. As she is now limited to working as a supply teacher her earnings are significantly less than they would have been and she has lost the added benefit of the teachers' pension fund. The judge rejected the claim to compensation for a lost career, citing the fact that it had been a mutual decision between the parties. He also found that Dr MacFarlane had not benefited financially from the arrangement by being freed up to do more work of his own. However, on appeal, Mrs MacFarlane’s barrister stated that the husband had benefited by having a 'homemaker and companion'. Rejecting her case, Mr Justice Moylan said the first instance judge had been correct to reject Mrs MacFarlane’s claim for compensation for giving up her job. The couple’s decision had been a joint one. As a result of this case, spouses who include a compensation claim within their divorce proceedings may find it less likely to succeed.