Gary Yan & Tom Phillips provide a cross-check on ring fencing assets
The recent Court of Appeal decision in Jones v Jones [2011] EWCA Civ 41, [2011] All ER (D) 231 (Jan) reinforces the principle that certain assets can be ring-fenced, provided that the needs of the parties are met by division of matrimonial assets.
At the time of the parties’ marriage, the husband had a business which had been in operation for 10 years and which supplied gases and equipment to the North Sea oil industry. The husband and wife separated in 2006 after 10 years of marriage. In 2007, the husband sold his business for £32m, of which he personally received £25m net.
One of the central issues in the case was the valuation of the husband’s business at the time of the marriage in 1996, and how much of the business sale proceeds could be excluded from the matrimonial pot.
At the final hearing, Charles J found that 60% of the value of the business (c£15m) should be excluded due to the fact that the company
