Case study
Helping a divorcing couple avoid a costly final hearing
The Client
David and Deborah had a traditional marriage and enjoyed a very comfortable lifestyle.
Deborah was a stay-at-home mum who enjoyed shopping and meeting her friends for lunch. David’s salary was £10,000 gross per month.
Like many couples, they sadly grew apart and separated. Deborah initiated divorce proceedings hoping to achieve a financial settlement that would allow her to maintain the lifestyle she was accustomed to.
The Challenge
Deborah submitted an Income Needs Schedule for £11,000 per month. They had sold their house, and David had to subsidise Deborah’s spending with capital, including a £40,000 holiday.
His lawyers were concerned about the erosion of capital and wanted to bring Deborah to her senses by laying out the reality of her excessive spending.
The Solution
David’s lawyers asked us to analyse their past spending over the four years before they separated and one year after.
They particularly wanted us to focus on Deborah’s extravagant holiday spending and asked us to separate the holiday to the USA, which cost £40,000.
We produced a comprehensive breakdown of the couple’s annual income and expenditure through a thorough analysis of financial statements before creating a fair, impartial and accurate budget report based on the facts.
The Outcome
When Deborah saw the budget in black and white, the full extent of her spending – and the family finances as a whole – became clear.
She immediately acknowledged that her spending was unsustainable. The case was settled at the financial dispute resolution (FDR) hearing, where both parties reached an agreement. This avoided a very long – and costly – financial remedy hearing in court, saving David and Deborah a fortune in legal fees… and the stress of going to court.
Work with us
Why Pennywise Consultants?
Does this story sound familiar? If it does, Pennywise Consultants can help. We specialise in creating and challenging lifestyle budgets and income needs schedules in mediation and legal proceedings.
Our independent, impartial reports are clear, easy to understand and presented in a format accepted by judges, court officials and legal professionals. Many top-tier law firms in England and Wales have successfully used our budgets to achieve fair outcomes.
We go the extra mile to help you and your clients make big decisions quickly and confidently, providing certainty and peace of mind. We can do the same for you.
Interested?