Case No. ZZ20D65691

on the wife’s entitlements under the modified PNA89.Schedule 1 contains the Outcome Schedule incorporating my rulings. The total value which must be provided to the wife pursuant to the terms of the modified PNA is £37,489,392. In addition, the wife has 17 years’ use of the husband’s share in the family home worth £9.15 million.90.The parties are agreed as to how assets should be distributed and will work out the cash payment that needs to be made by the husband to the wife to reflect my decision. 91.In addition to her entitlement of £37,489,392 under the PNA the wife seeks further payments of £750,000 as a refurbishment fund for the family home; €300,000 compensation for stolen jewellery (as mentioned above); and £450,000 as a form of parachute payment to ease her transition to a standard of living which she says will be several levels below that which she has enjoyed hitherto. These applications are misconceived. They are in plain breach of the terms of the PNA which the wife accepts as binding. They are refused.92.The sum of £37,489,392 is the cornerstone of my calculations set out below of the sum to be received by the wife to fund her household. It must therefore be received by the wife net in her hand and not be depredated by tax. To the extent that he had not done so already the husband must indemnify the wife in respect of any taxes that may arise in respect of any transfers of property or other assets into her sole name. 93.Once the wife has received her full entitlement under the PNA the parties’ remaining claims for financial remedies will be dismissed on the clean break basis in life and in death (although the husband being domiciled outside England and Wales there is no possibility of a claim under the Inheritance (Provision for Family and Dependants) Act 1975). The wife’s capital needs94.In this phase of my decision, I need to calculate how much the wife will have as a Duxbury fund on the assumption postulated by Mr Cusworth KC on her behalf, namely that the family home in London aside, all the assets distributed to her under the modified PNA are to be treated as cash to provide for her capital needs, with the residue furnishing a Duxbury fund.95.I therefore turn to examine the wife’s reasonable capital needs.96.She intends to stay in the family home until B is 21 pursuant to her entitlement under Article 6.2.1. The husband will be paying the instalments on the actual mortgage which is of course more than the deemed figure of £16 million which I have ruled is to be used in the Outcome Schedule. Therefore, the parties’ lawyers need to agree figures to ensure that the wife receives money or money’s worth of £28,339,392, being her PNA entitlement of £37,489,392 less the deemed value of her half share in the family home of £9,150,000. The values of all the items in question having been either agreed or ruled on by me, it will be a very simple task to add up the values of the items being distributed to the wife and to subtract that figure from £28,339,392, to give the residual sum to be paid by the husband to the wife in cash.97.As mentioned above, the wife says she needs £750,000 for refurbishment costs of the family home. She also says she needs £165,000 for a car fund. She says she needs £6 million to buy a holiday home. There was no oral evidence about these claims. The husband does not accept any of them.98.In my view the claims for refurbishment costs and for a car fund are reasonable capital needs of the wife, which she should pay from her own funds. Given the standard of living enjoyed during the marriage it is not unreasonable for the wife to acquire a holiday home from her own funds. I take a figure of £4 million for this purpose. I am sure that it will be clearly appreciated that while it is reasonable for the wife to spend her own capital for these purposes (with a consequential reduction in her Duxbury income) it is completely unreasonable that the husband should directly pay for any of them.99.It is also necessary for the wife to pay her outstanding costs of £317,382. This leaves the sum of £23,107,010, calculated as follows:100. For the reasons given below at [147] the wife should reasonably be expected to use 94% of this fund, or £21,720,767, as a Duxbury fund to meet the needs of her household. She should be entitled to carve out 6% of this fund, or £1,386,243, to meet her own personal needs unconnected to her role as primary carer of the children..The reasonable annual income to be derived from the wife’s Duxbury fund101.My next step is to undertake a reverse Duxbury calculation on £21,720,767 to see how much income it will generate for the wife to put towards the cost of running her household.102.For the purposes of this reverse calculation, I apply four assumptions:a.full amortisation of the fund during its 40-year existence to 2062;b.no state pension; c.in 2039, when the occupation of the family home comes to an end on the younger child attaining 21 years of age, an injection of £4 million (in today’s money) into the fund, as the wife will not then be needing as much as £13.15 million (again, in today’s money) in housing funds; andd.in 2042, a 40% reduction in income at age 67 on retirement (as suggested by Mr Cusworth KC). 103.In applying these assumptions, I follow my own decision in CB v KB [2019] EWFC 78. In that case the wife was 45. I said this:“53.Notwithstanding the relatively young age of the wife I consider it reasonable to work on the whole-life provision implicit in the Duxbury formula. This was a long relationship and there have been six children born. It is reasonable in such circumstances for the wife to be provided for until the end of her life. It is pre-eminently reasonable that the wife should be required to amortise - that is to say, to spend - her Duxbury fund. Indeed, I struggle to conceive of any case where in the assessment of a claimant’s needs it could be tenably argued that it was reasonable for her not to have to spend her own money in meeting them. After all, that is what money is for. The endgame of the contrary argument is that it would be reasonable for a respondent to have to fund a claimant’s testamentary ambitions. I cannot conceive of any case where that could be said to be reasonable.54.The wife’s home is very large. She accepts that it would be reasonable for her to downsize in her autumn years. In my judgment it would be reasonable for her to release equity of £1.5 million when she reaches the age of 60. Moreover, at that point it is reasonable for her spending to reduce by a third. After all, virtually everybody moving into retirement and onto a pension has to reduce their spending.”104.As to the amortisation issue, I remain puzzled by the proposition that says it is a mere fact-specific question whether the provision by one spouse to meet the needs of the other spouse could include meeting a “need” to leave money to testamentary beneficiaries. In my opinion, it is a clear matter of principle. Accordingly, where a wife has received a substantial sum under a sharing or compensation claim, or under a PNA, it is hard to conceive that it would ever be reasonable to expect a husband to top up that sum to enable the wife to keep her capital intact to leave to testamentary beneficiaries.105.I suggest that this is entirely consistent with Lord Nicholls’ well-known passage in White v White [2001] 1 AC 596 at 609 under the heading “The next generation”, where he said:“I agree that a parent's wish to be in a position to leave money to his or her children would not normally fall within paragraph (b) as a financial need, either of the husband or of the wife. But this does not mean that this natural parental wish is wholly irrelevant to the section 25 exercise in a case where resources exceed the parties' financial needs. In principle, a wife's wish to have money so that she can pass some on to her children at her discretion is every bit as weighty as a similar wish by a husband. A Duxbury type fund is intended to provide money for living expenses but not more. … In my view, in a case where resources exceed needs, the correct approach is as follows. The judge has regard to all the facts of the case and to the overall requirements of fairness. When doing so, the judge is entitled to have in mind the wish of a claimant wife that her award should not be confined to living accommodation and a vanishing fund of capital earmarked for living expenses which would leave nothing for her to pass on. The judge will give to that factor whatever weight, be it much or little or none at all, he considers appropriate in the circumstances of the particular case.”106.In that momentous case the long-standing criterion of resolving cases solely by reference to the reasonable requirements of the claimant was overturned, but no firm alternative technique was enunciated other than the criterion of fairness (at 589) and the application of the yardstick of equality as a check against the possibility of discrimination (at 605). 107.What Lord Nicholls was saying is that while a claimant’s wish to leave money to her testamentary beneficiaries is not a reasonable need for the purposes of s. 25(2)(b) of the Matrimonial Causes Act 1973, the court may yet grant her an enhanced award enabling her to do so on application of the then protean criterion of fairness. 108.It was not until the decision of the House of Lords in Miller v Miller, McFarlane v McFarlane [2006] 2 AC 618 that the concept of “sharing” as an element or strand of the requirement of fairness emerged. The three elements - sharing, needs and compensation - constituted compendiously the fairness requirement. Therefore, the claimant’s testamentary wish, which Lord Nicholls in White had left to a protean general “fairness” discretion on the part of the judge, now has to be accommodated within the sharing principle. Logically, it is only there that it can find expression. If a claimant has earned a right to share equally (or unequally) in the marital acquest, then what she receives is her money and what she does with it is her business alone. It only becomes the other party’s business if the claimant argues that her needs exceed her sharing entitlement and that she therefore requires her sharing entitlement to be topped up to meet those needs. The needs in that scenario cannot, as Lord Nicholls explained in White, encompass a testamentary wish.109.There is another reason in this case why full amortisation is clearly appropriate. Article 5.1 of the PNA provides:“Based on each party’s assets, income, earning potential and the distribution of property each will receive pursuant to the terms of this Agreement, each party does hereby acknowledge that he or she has or will have ample financial resources to be self- supporting throughout his or her life and, therefore, each party does hereby waive, relinquish and release his or her rights to permanent maintenance or temporary maintenance, permanent alimony or temporary alimony, lump sum alimony, “quantum meruit alimony” or other permanent or temporary support of any kind from the other in the event the parties separate, divorce, annul or otherwise terminate their marriage to each other, as prescribed or authorized by the common law or any statute, including, without limitation, New York Family Court Act Article 4 and New York Domestic Relations Law Section 236, Part B(6), any amendment or successor thereto, or the similar law of any jurisdiction within or without the United States.”Now, it is perfectly true that the preamble to the PNA states that while the agreement is in full satisfaction of all rights arising on divorce, it does not deal with issues relating to child support (see [22(a)] above). The wife’s claim before me is for child support, albeit for that type of child support permitted by the law (as I will explain) whereby the reasonable costs of her household, including herself, will be met by the husband to the extent that they are not capable of being met by her. This award will literally amount to “support of any kind … in the event the parties divorce” within the terms of Article 5.1, albeit, as a child support award, it is excepted from its operation. But I do not think that Article 5.1 can be ignored. What it implies is that if a claimant is seeking what I will call a Household Expenditure Child Support Award (“a HECSA”) then it is incumbent on the claimant to spend her own money in funding her household before she looks to the other party to meet, or contribute to, that cost. And spending her own money means being treated in the calculation of the other party’s liability, as amortising fully her Duxbury fund.110.In any event, the wife will, at the appointed time for her to expire, have unspent housing capital of £9.15 million in today’s money, which will on any view provide her children, even after the depredation of inheritance tax, with a very substantial inheritance. Further, I do not overlook the fact that these children will probably receive inheritances of vast size upon the demise of their father.111.A reverse Duxbury calculation on a capital sum of £21,720,767 for a woman aged 47 applying the assumptions set out above, provides a net of tax income of £1,110,316 per annum in today’s money until 2042 when it will fall by 40% to £666,190, again in today’s money.The wife’s child maintenance claim112.I shall first examine the applicable legislation and the case-law.113.An unsecured child maintenance award may be made under the following statutes:a.for any child, whether marital or non-marital, under paragraph 1(2)(a) of Schedule 1 to the Children Act 1989;b.for a marital child, under s. 23(1)(d) of the Matrimonial Causes Act 1973 (where the child’s parents were divorced in England and Wales) or under s.17(1)(a)(i) of the Matrimonial and Family Proceedings Act 1984 (where the parents were divorced overseas).I do not need to consider the power to award unsecured child maintenance under the Domestic Proceedings and Magistrates’ Court Act 1978.114.The award in each case is discretionary. The criteria governing the exercise of the discretion is similar, but not identical, under the statutes.115.Under Schedule 1, para 4(1):“The court shall have regard to all the circumstances including:(a)the income, earning capacity, property and other financial resources which each [parent] has or is likely to have in the foreseeable future;(b)the financial needs, obligations and responsibilities which each [parent] has or is likely to have in the foreseeable future;(c)the financial needs of the child;(d)the income, earning capacity (if any), property and other financial resources of the child;(e)any physical or mental disability of the child;(f) the manner in which the child was being, or was expected to be, educated or trained.”116.Under s. 25(3) of the 1973 Act:“the court shall in particular have regard to the following matters:(a)the financial needs of the child;(b)the income, earning capacity (if any), property and other financial resources of the child;(c)any physical or mental disability of the child;(d)the manner in which he was being and in which the parties to the marriage expected him to be educated or trained;(e)the considerations mentioned in relation to the parties to the marriage in paragraphs (a), (b), (c) and (e) of subsection (2) above.”Those considerations in s.25(2) are:(a)the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future, including in the case of earning capacity any increase in that capacity which it would in the opinion of the court be reasonable to expect a party to the marriage to take steps to acquire;(b)the financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future;(c)the standard of living enjoyed by the family before the breakdown of the marriage;(e)any physical or mental disability of either of the parties to the marriage;117.Section 18(4) of the 1984 Act provides: “As regards the exercise of those powers in relation to a child of the family, the court shall in particular have regard to the matters mentioned in section 25(3)(a) to (e) of the 1973 Act.”Thus, the criteria under the 1973 and 1984 Acts are identical. They differ from Schedule 1 in that under the 1973 and 1984 Acts the court is specifically directed to have regard to the standard of living enjoyed by the family before the breakdown of the marriage, and to any physical or mental disability of either of the parties to the marriage. These factors are not explicitly mentioned in Schedule 1, para 4(1) although they would no doubt fall for consideration under the general rubric of “all the circumstances”.118.A further difference is that, unlike a child maintenance claim under the 1973 or 1984 Acts, the court under Schedule 1 is not expressly required to give first consideration to the welfare of the child. This is of no significance. In J v C (Child: Financial Provision) [1999] 1 FLR 152 Hale J explained at [156]:“The reason for the omission of the requirement to treat the child's welfare as the first consideration is probably that these provisions apply in cases where the adult parties are, or were, married to one another and, therefore, the court will usually be faced with claims for some provision for the adults as well as for the children. In such cases it makes sense to provide that the children's welfare should come before that of the adults in determining those claims.Nevertheless, in cases under the Children Act 1989 the welfare of the child concerned, even if neither the paramount nor the first consideration, must be one of the relevant circumstances to be taken into account when assessing whether and how to order provision.”119.In my opinion where a court is considering a claim for child maintenance under the 1973 or 1984 Acts it must have careful regard to the standard of living enjoyed by the family before the breakdown of the marriage because it has been instructed to do so by Parliament. This factor should not however be allowed to dominate the picture as there will be many children, particularly children dealt with under Schedule 1, who will not have experienced a standard of living within a functioning relationship either because the liaison between the parents was very brief, or because the child was born after the relationship had come to an end: see J v C (Child: Financial Provision) at [156]. However, in some cases, and this is one of them, the standard of living enjoyed by the whole family before the breakdown of the relationship will be of great importance.120.The other difference between a claim for unsecured child periodical payments mounted under Schedule 1 and one mounted under the 1973 or 1984 Acts is that a under the former statute the child support claim will be front and centre in the litigation. Along with the claim for a home for the child it will be the centrepiece of the litigation. In contrast, a claim for unsecured child payments mounted under the 1973 or 1984 Acts will be distinctly subsidiary to the primary claim made by the parent as a spouse. A child periodical payments claim made as part of a routine financial remedy claim by a spouse following a divorce will generally be dealt with perfunctorily. Indeed, the court will have no jurisdiction in the majority of cases to deal with child support unless there has been an agreement between the parties under the terms of the Child Support Act 1991. I suggested in CB v KB at [49] that the child support formula should apply to gross annual incomes in excess of £156,000 up to £650,000. That pragmatic, and I believe useful, guideline is obviously intended to apply forcefully to those cases where the court is considering child support as a subsidiary claim within a wider financial remedy claim. It will be a rare case where the court in a financial remedy claim between divorcing spouses will spend much time and forensic energy analysing a child maintenance budget. In contrast, in a case under Schedule 1 the child maintenance budget is the principal litigation battleground.121.However, there are some cases where for one reason or another the court hears a claim under the 1973 or 1984 Acts for child maintenance alone, and not alongside a wider spousal claim. The most obvious example is an application to vary an existing child maintenance order. Other examples would include situations where the claimant does not have a personal spousal claim to advance, because she has means of her own; or because she has remarried before she made a claim; or where for personal reasons she chooses not to make a personal claim (as in the Maktoum case, see below); or where (as here) the terms of a prenuptial agreement prevent her from making a personal claim. In such a case the child maintenance claim will be subjected to the same degree of scrutiny as a claim under Schedule 1 but with the court looking specifically at the standard of living enjoyed by the family before the breakdown of the marriage.122.I therefore agree that the case law under Schedule 1 is relevant to those claims for child maintenance made under the 1973 or 1984 Acts where there is no corresponding spousal claim being heard at the same time.123.The most significant cases under Schedule 1 are J v C (Child: Financial Provision) [1999] 1 FLR 152, FD, In re P (Child: Financial Provision) [2003] 2 FLR 865, CA, and In re A (A Child) (Financial Provision: Wealthy Parent) [2015] Fam 277. These authorities demonstrate the legitimacy of a HECSA and explain how such an award should be calibrated.124. In J v C , Hale J stated at [159]:“Paragraph 4(1)(c) requires me next to consider the financial needs of the child. Mr Karsten (on behalf of the father) accepts that the concept of reasonable requirements is just as appropriate under this heading as it is in the matrimonial context, although of course we are looking at T's requirements rather than those of anyone else. This is the nub of the case. The child obviously requires a home; full-time care; provision for her food and other day-to-day requirements, such as clothes, toys, books and transport. It has long been established that a child's need for a carer enables account to be taken of the caring parent's needs, in this case, in particular, for accommodation rather than for maintenance. The authority for that is in Haroutunian v Jennings (1980) 1 FLR 62, but it was said again in the case of A v A (already referred to).” In this case of course we are looking at capital needs and not at day-to-day income needs. Mr Karsten's principal argument (on behalf of the father) is that this child does not need a new home. She already has a home which he thinks adequate to her needs. In this respect, therefore, this case is different from other cases in which provision similar to that asked for in this case was awarded. …In support of this argument Mr Karsten urges that account should be taken of the standard of living of the couple when they were together in a relationship. Both lived modestly in public sector housing. I should also take account of the standard of living of his other children, who, again, all live in public sector housing.I accept of course that one must guard against any use of an application such as this as 'gold digging' on the part of the mother. This is a pejorative phrase which it is easy for advocates to use. The point can only be that one has to guard against unreasonable claims made on the child's behalf but with the disguised element of providing for the mother's benefit rather than for the child. I accept that entirely.But if a house were provided it would not become the mother's. She would have the benefit of living there for as long as she was T's carer, but it would be settled for the benefit of the child with reversion to the father who would expect to regain probably an enhanced capital asset at the end of the trust.I also agree with his Honour Judge Collins in H v P that the child is entitled to be brought up in circumstances which bear some sort of relationship with the father's current resources and the father's present standard of living. Parents are responsible for their children throughout their dependency. The fact that such riches as they have came after the breakup of the relationship cannot affect that.” (emphasis added)Thus, the criterion of “some sort of relationship” with the father’s standard of living came into existence. 125.In Re P, a case involving a very rich father, this approach was approved and confirmed although Thorpe LJ expressed the objective slightly differently. First, he emphasised in [44] the importance of the child’s welfare:“I would only wish to amplify by saying that welfare must be not just ‘one of the relevant circumstances’ but, in the generality of cases, a constant influence on the discretionary outcome. I say that because the purpose of the statutory exercise is to ensure for the child of parents who have never married and who have become alienated and combative, support and also protection against adult irresponsibility and selfishness, at least insofar as money and property can achieve those ends.”126.Next, he explained how, after the housing question had been addressed, the wife’s budget should be judged. At [49] he stated:“[49] Thus, in my judgment, the court must recognise the responsibility, and often the sacrifice, of the unmarried parent (generally the mother) who is to be the primary carer for the child, perhaps the exclusive carer if the absent parent disassociates from the child. In order to discharge this responsibility the carer must have control of a budget that reflects her position and the position of the father, both social and financial. On the one hand she should not be burdened with unnecessary financial anxiety or have to resort to parsimony when the other parent chooses to live lavishly. On the other hand whatever is provided is there to be spent at the expiration of the year for which it is provided. There can be no slack to enable the recipient to fund a pension or an endowment policy or otherwise to put money away for a rainy day. The wife’s revised budget for the household is £2,355,520. Of this she has calculated that £299,400 are expenses which are strictly personal to her, and are not referable in any shape or form to the cost of providing for the children in her household.”Thus, the alternative criterion of “she should not be burdened with unnecessary financial anxiety” was born.127.At [76] - [77] Bodey J summarised the legal principles applying to a Schedule 1 claim as follows (omitting citations):“[76] In the light of para 4 of Sch 1 to the Children Act 1989 and the authorities to which we have been referred, the following summary can be offered as to the considerations applicable to claims under Sch 1: (i) (ii) Considerations as to the length and nature of the parents’ relationship and whether or not the child was planned are generally of little if any relevance, since the child’s needs and dependency are the same regardless. (iii) (iv) (v) (vi) In cases where the father’s resources permit and the mother lacks significant resources of her own, she will generally need suitable accommodation for herself and the child, settled for the duration of the child’s minority with reversion to the father; a capital allowance for setting up the home and for a car; and income provision (with the expense of the child’s education being taken care of, generally, by the father direct with the school).(vii) Such income provision is reviewable from time to time, according to the changing circumstances of the parties and of the child. (viii) The overall result achieved by orders under Sch 1 should be fair, just and reasonable taking into account all the circumstances.[77] From the experience of this case, I would propose three further considerations:(i) In considering the mother’s budget, at least in bigger money cases, the court should paint with a broad brush, not getting bogged down in detailed analyses and categorisations of specific items making up opposing budgetary presentations. Rather, the court should do its best to achieve a fair and realistic outcome by the application of broad common sense to the overall circumstances of the particular case.(ii) Comparisons with the commercial cost of providing professional care are unlikely to be of great assistance and may only serve to distract.(iii) When setting up a budget for the sort of lifestyle a child should be enabled to have, the court should not generally attach weight to the risk that the father may reduce or withdraw his support when the child comes of age (or ceases education or training) thereby obliging the child to adapt to a lower lifestyle at that time.”128.In Re A, Macur LJ stated at [21] – [22]:“21. The extent of the non-residential parent’s wealth may still inform reasonableness of budgetary claims as well as ability to pay; that is, for example, the child of a wealthy man may well expect to be dressed in designer rather than high street store clothes. However, that is not to say that the court may dispense with any budget and sanction an award supportive of a lavish lifestyle devoid of context to the relevant child’s circumstances as is argued on behalf of this appellant. The court is responsible for ensuring appropriate financial support for the child and must confine the aspect of the carer’s allowance within the award to its legitimate purpose. The most casual analysis of a proposed budgetary allowance for a five-year-old child which includes membership of Annabel’s nightclub reveals the exaggeration of the claim to compensate or benefit the previous partner in their own right and not as carer for the child. 22. Courts dealing with Schedule 1 applications routinely follow the decision in In re P (Child: Financial Provision) [2003] 2 FLR 865. The nature of the child’s home environment provides the obvious baseline from which to consider commensurate levels of maintenance and is as good as any other.” Here the criterion is: “the nature of the child’s home environment provides the obvious baseline.” The reference to the “child’s home environment” is to the home that the child enjoyed with both parents before the breakdown of their relationship.129.Drawing the threads together, the cases establish the following propositions.2a.When determining a child maintenance application, the welfare of the child must be a constant influence.b.A child maintenance award can extend beyond the direct expenses of the children. It can additionally meet the expenses of the mother’s household, to the extent that the mother cannot cover, or contribute to, those expenses from her own means. Such an award might be referred to as a Household Expenditure Child Support Award (‘a HECSA’). The essential principle is that it is permissible to support the child by supporting the mother.c.But a HECSA cannot meet those expenses of the mother which are directly personal to her and have no reference to her role as carer of the child. An example is a subscription to a nightclub. However, the award can meet the expenses of the mother which are personal to her provided that they are connected to her role as a carer. Examples are the provision of a car or designer clothing. d.The reasonable level of the mother’s household expenses should be judged by reference not only to the present standard of living of the respondent but also, if applicable, to the standard of living enjoyed by the family prior to the breakdown of the relationship. The object of a HECSA is not to replicate either such standard, but to ensure that the child’s circumstances “bears some sort of relationship” to them. The standard of living in the parties’ home prior to the breakdown of the relationship is “as good a baseline” as any other. (As will be seen, Moor J in the later Maktoum case, expressed the test as being that the children should be entitled to a lifestyle that is “not entirely out of kilter” with that enjoyed by them before the breakdown of the marriage, and that currently enjoyed by the father and his family).e.The HECSA must be set at such a level that the mother is not burdened by unnecessary financial anxiety.f.When assessing the mother’s budget, the court should paint with a broad brush and not get bogged down in detailed analyses. Rather, the court should achieve a fair and realistic outcome by the application of broad common-sense to the overall circumstances of the particular case.130.Historically, an award over and above the direct expenses of the child was rationalised as being a “carer’s allowance,” with the unfortunate consequence that in some cases evidence of the commercial costs of nannies was adduced. Thus is A v A (A Minor) (Financial Provision) [1994] 1 FLR 657, in explaining his quantification of an allowance for the mother’s care, Ward J said (at 665):“I bear in mind a broad range of imprecise information from the extortionate demands (but excellent service) of Norland nannies, to au pair girls and mother’s helps, from calculations in personal injury and fatal accident claims and from the notice-boards in the employment agencies I pass daily. I allow £8,000 under this head. It is almost certainly much less than the father would have to pay were he to be employing staff, but to allow more would be – or would be seen to be – paying maintenance to the former mistress who has no claim in her own right to be maintained.”131.That approach was disapproved in Re P at [43] and [77(ii)], and rightly so, as a HECSA does not seek to put a value on, or attribute a cost to, the claimant’s primary care of the child. That exercise is not only irrelevant - a complete red-herring - but seems to me to have unpleasant transactional overtones. I agree with the judgment of HHJ Horowitz QC in Re V [2012] EWHC B36 (Fam) at [106] where he suggested that the concept of a carer's allowance “is past its utility”. I would go further and consign it to the history books.132.Recently, in Hussein v Maktoum [2021] EWFC 94, Moor J applied the governing principles in that notorious huge-money case. Mr Chamberlayne KC argues that this decision is a unique outlier of such extraordinarily singular features that nothing in it is of any relevance to the case before me. I disagree. Obviously, there were singular features in that case in that the husband was the ruler of Dubai, and the wife was the sister of the King of Jordan. However, when it came to assessing the wife’s claim Moor J faithfully and clearly applied the relevant principles.133.In that case the wife had commenced Schedule 1 proceedings in respect of the two children. She later obtained leave under Part III of the 1984 Act to claim in her own right as well as for the two children. In [45] Moor J observed that the claim under Schedule 1 for the children had been overtaken by the wider claims made under the 1984 Act, which included claims for those children. For personal reasons that wife did not make any claim for herself under the 1984 Act other than for (i) the cost of security, (ii) to compensate her for chattels she has lost as a result of the ending of the marriage, and (iii) for certain other incidental expenses she had incurred. 134.These limited personal claims were resolved by Moor J awarding her a lump sum of £41.5 million principally as compensation for jewellery and horses of which she had lost possession, as well as to enable her to pay an inheritance tax charge on her home. In addition, he awarded a lump sum of £210 million to cover the cost of the security for the wife and the children for their lifetimes.135.That wife’s budget was in the sum of £17.5 million per annum. It covered the entirety of her household expenses. She sought that the entirety of that budget should be covered by an award of child periodical payments under Part III of the 1984 Act. Moor J did not require the wife to put any part of her £41.5 million compensation lump sum towards her household budget.136.While her budget of £17.5 million was objectively massive, allowing a lifestyle of the utmost luxury, it was nonetheless several levels below the standard of living enjoyed by that family before the breakdown of the marriage. In his judgment, Moor J stated:“60.I will have to do my best to come to a conclusion as to what is reasonable whilst remembering that the exceptional wealth and remarkable standard of living enjoyed by these children during the marriage takes this case entirely out of the ordinary. …71.Despite HH not attending before me to give evidence and be cross-examined, I am of the view that I should consider HRH’s budget carefully and make any adjustments that are appropriate. If I did not do so, I would, in effect, be giving HRH carte blanche to include any item however inappropriate or unreasonable, in her figures. Equally, however, I am absolutely clear that I must do so with a very clear eye to the exceptional circumstances of this case, such as the truly opulent and unprecedented standard of living enjoyed by these parties in Dubai and the fact that I have not heard HH cross-examined on the many pertinent matters that Mr Cusworth would wish to put to him, including, in particular, his expenditure and lifestyle. …91.In reaching my conclusions, I have very much had in mind the figures that were spent during the marriage in Dubai, as exemplified by the 2019 budget, signed by HH. I have not heard from HH. I am unable to compare his expenditure with that sought by HRH. I accept, in accordance with authority, that the children should be able to have a lifestyle that is not entirely out of kilter with that enjoyed by them in Dubai and that enjoyed by HH and his family. I accept, of course, that it will be quite impossible to replicate, pound for pound, the standard of living they enjoyed before their parents separated but I am going to be generous and accept many of the figures put forward by HRH.” (emphasis added)Here the criterion is that the children should be entitled to a lifestyle that is “not entirely out of kilter” with that enjoyed by them before the breakdown of the marriage, and that currently enjoyed by the father and his family. If I may respectfully say so, that rubric is an impeccable summary of the relevant principles and is one which I intend to adopt in this case. 137.That wife’s budget of £17.5 million included very high additional security costs of £2.45 million when on holiday, £750,000 for running an office in each of London and Amman, £550,000 for the legal and professional fees of running the trusts that owned the wife’s homes, together with other highly atypical expenses referable to the status of the wife and the children (“the atypical expenses”). The figures in the judgment are not complete. Doing the best I can, I calculate that the typical expenses claimed by that wife were just under £11 million which Moor J reduced by 27% to just under £8 million, as per the table below. It can be seen that the largest cuts were in respect of holiday flights and leisure. The nature of the leisure expenses which were in part disallowed have been obscured in the judgment, so it is difficult to understand this aspect.138.Moor J made a HECSA that covered (a) the atypical expenses in the sum of £3,224,714, and (b) the typical categories of expenditure tabulated above totalling £7,930,267. This produced a total award of £11,154,981, rounded to £11.2 million, which was divided equally between the two children.This case: the wife’s household budget139.In this case, the wife’s initial budget was produced on 28 July 2022 and was in the amount of £4,686,620 per annum. In her witness statement of 23 September 2022, she said:“Doing the best they can on the information available, my solicitors have prepared a schedule of estimated future needs as set out in the yearly budget served on 28 July 2022,” (emphasis in original)That budget included mortgage payments and school fees which will be paid directly by the husband. Removing those items brought the budget down to £3,719,120. In her open offer made on the same day the wife calculated that her Duxbury fund could generate £1,150,000 leaving a shortfall of £2,659,120. Yet the wife proposed a child maintenance award of £960,000. There would therefore be a deficit of £1,629,120. The wife was effectively saying that she would live on £2,090,000 rather than £3,719,120. 140.Under cross-examination on Thursday, 13 October 2022 the wife admitted that there was no budget or breakdown on how she could live on £2 million. But she said she was trying to “crunch down the numbers” and that she had “a working draft” of a revised budget, to “get down” to £2 million. She said (at odds with her witness statement) that her original budget “was the actual rate of living and in that it pertains to how we’ve lived, how I’ve lived the last 12/14 years”.141.This was not at all satisfactory. It was not fair to the husband, who had instructed his counsel to cross-examine the wife on what he thought was her proposed future budget. Therefore, the wife agreed that overnight she would amend her budget to include a column that applied the cuts that perforce would have to be applied to her original budget if she was to live on £2,090,000. I gave her permission to speak to her solicitors for the purposes of preparing this revised document.142.The following morning, Friday 14 October 2022, the wife produced an amended budget which reduced the figure of £4,686,620 to £2,369,920. This new figure did not include mortgage costs, or school fees.143.Mr Chamberlayne KC then cross-examined the wife on this revised budget, making predictable points about figures that jumped off the page. His first question related to the amount spent on children’s clubs and classes totalling £73,000 per annum. He put it to the wife that this was plainly inflated but the wife gave a reasonable and measured response that for better or for worse this is what the children were given, what they were used to, and what they enjoyed. The cross-examination continued in similar vein, with the wife trenchantly defending figures that looked extremely high.144.The husband gave evidence later that day. Under cross-examination he stated:“But in my mind I secured in the pre-nup and what I did in our marriage, she lives very comfortable till the rest of her life and my kids live also a wonderful life and I believe that kids to smother them in luxury makes them jaded. I want them to learn the value of money. I want them to become independent smart kids and not something like getting entitled boys and money can destroy character. I did that with my daughters and I'm very proud of my daughters. They are independent. My ex-wife when my daughter was not bringing the video back Blockbuster at that time when they had video stores and it cost $1 dollar lately, she was yelling and screaming them and they are now independent smart adults. And I'm doing the same thing with my 16-year-old son. And in my mind I should be work as inspiration that I have nice things but the kids shouldn't define themselves through what I have or what I don't have. I want to give them the best education and if they are starting a business I will help them. That's what -- how my philosophy is but not having four nannies and five housekeepers and bossing them around. That's not the spirit of what I want to see my kids getting, raising up.”145.Over the ensuing weekend the husband in conjunction with his lawyers prepared a counter-budget for the wife and the children amounting to £1,090,000. With my permission the wife lodged on Saturday 22 October 2022, after submissions had been concluded on 19 October 2022, a rejoinder. This (a) reduced her budget to £2,355,520; (b) itemised and totalled those expenses that were exclusively referable to her alone in the sum of £206,500; (c) itemised and totalled her claim for the cost of nannies in the sum of £190,420 and (d) gave a detailed commentary on her figures and on the husband’s figures. Her final, re-revised household budget excluding any costs exclusively referable to her alone, and the cost of nannies which the husband will be meeting directly, is £1,958,600. This case: decision 146.I now reach my decision on the issue of child support. In so doing I give first consideration to the welfare of the children pursuant to s.25(1) of the Matrimonial Causes Act 1973. I pay particular regard to s. 25(3)(a) and s.25(2)(a), (b), and (c) of the Act, viz:•the financial needs of the children; •the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future; •the financial needs, obligations and responsibilities which each of the parties to the marriage has or is likely to have in the foreseeable future; and•the standard of living enjoyed by the family before the breakdown of the marriage147.In my judgment a reasonable figure for the wife to be able spend on her personal expenses is £125,000. This is to meet things such as socialising without the children, gifts and support to family members, and holidays without the children. Added to the figure of £1,958,600 above gives an overall budget for household and personal expenditure, but excluding nannies, of £2,083,600. Of this the personal element of £125,000 is 6% of the total. I therefore consider that 6% of the wife’s income producing fund, or £1,386,243, should be carved out for the purposes of her personal expenditure, and this the figure I have used at [100] above.148.I remind myself that I must not examine this child support claim through a middle-class, middle- income lens. In my opinion the husband’s view that the children should not be spoiled (which some critics might regard as forensically opportunistic) in fact deserves some credit. There are aspects of the expenditure which, even allowing for the fact that the rich are different to you and me, are exorbitant.149.I take the advice of Mr Justice Bodey to heart. I shall not labour over a detailed analysis of the wife’s household budget of £1,958,600. Having regard to the husband’s moral stance, and to certain aspects which are plainly inflated, I think that a cut of 15% across the board would be appropriate. This is not as high as Mr Justice Moor’s cut of 27%, but it the figure which I judge to be, in the words of Mr Justice Bodey, a “fair and realistic outcome by the application of broad common sense.”150.This leaves a household budget of £1,664,810. The wife’s Duxbury income will be £1,110,316, as calculated above. The shortfall is £554,494. I am satisfied that it is reasonable, just, and in the best interests of the children to make a HECSA in this amount. It is an amount that will ensure that their lifestyle is not out of kilter with the father’s present and likely future lifestyle, and with the lifestyle the family enjoyed before the relationship breakdown. The monthly award for each child will be £23,104, which I round to £23,100. The award will be CPI index-linked, and will endure until the relevant child is 18 or completes full-time tertiary education, if later. In addition, the husband will pay the school fees and extras.151.I cannot accept that it is reasonable to employ two full-time nannies at an annual salary for each of £85,000 per annum, plus additional expenses relating to the nannies of £20,000. I agree with the husband that £190,000 per annum for nannies is exorbitant. In my judgment, the children do not need two nannies. The husband’s liability to pay for nannies will be capped at £100,000 per annum, CPI index-linked.Secured provision and a fighting fund152.I am satisfied that the child maintenance award should be secured for two reasons. First, I consider that the husband has for reasons best known to himself deliberately disobeyed my order for maintenance pending suit, necessitating enforcement proceedings before me on two occasions. The wife should not have to suffer the anxiety of not knowing month-to-month if the maintenance is going to be paid, or the school fees paid, or the nanny paid.153.Payment of the mortgage will be pursuant to an undertaking, breach of which would carry a potential two-year prison sentence for contempt of court: see Hussain v Vaswani & Ors [2020] EWCA Civ 1216. In such circumstances I do not include the mortgage repayments within the order for security.154.The second reason is this. If the child maintenance order is not secured it comes to an end on the death of the husband: see s. 29(4) of the Matrimonial Causes Act 1973. If the order is secured, however, then it will endure beyond the husband’s death until its expiry when the child turns 18 or completes university education.155.The form of the security should be the same as that ordered in the Maktoum case, namely a guarantee given by a reputable London bank. The wife should be entitled to trigger the guarantee by giving the bank notice of a breach of the order by the husband. The notice must specify the sum which is said to be in default. If the notice is not challenged within 14 days by the husband, then payment of the default sum shall be made by the bank under the guarantee. If the notice is challenged, then the matter is to be restored to the court as a matter of urgency. The precise terms are to be agreed between the parties and in default of agreement I shall rule on them.156.The guaranteed sum will be £14,320,000. I have calculated this sum in accordance with the table below where I have made the following assumptions:a.A nanny will not be needed when B turns 13, although some other form of help costing approximately £50,000 per annum will be needed until he turns 17;b.School fees and extras at prep school will be £40,000 a year per child, and at senior school will be £55,000 a year;c.University fees will be £20,000 a year. When the children are at University they should deal directly with their father about the level of their allowances. I have not reduced the amount of the HECSA when the children are at University, although it may well have to be reconsidered at that time.d.The guaranteed sum needs to be adjusted each year for inflation which I take for the first two years at 7.5% and thereafter at the standard Duxbury rate of 3.75%.157.The secured amount of £14,320,000 will reduce by one-sixteenth, i.e. £895,000, on 1 January 2024 and annually thereafter by that amount until 1 January 2039 when the guarantee will come to an end.158.All of these provisions may be the subject of later variation. 159.I do not award a contingent lump sum as a fighting fund. I am aware that case law has said that this is a permissible exercise of the court’s powers. However, given the security I have ordered, I do not consider that an award for this purpose is either appropriate or necessary.Conclusion160. As regards the PNA: a.the wife’s entitlement thereunder is £37,489,392 together with the right to use the husband’s half-share in the family home worth £9,150,000 until 2039;b.in satisfaction of that entitlement the wife will receive (in addition to her half-share, and the right to use the husband’s half-share, in the family home) cash and assets worth £28,339,392 to be paid in cash and by transfers of property as soon as possible;c.the husband will pay the mortgage on the family home pursuant to an undertaking;d.the husband shall indemnify the wife in respect of any taxes that may arise in respect of any transfers of property or other assets into her sole name; ande.on full receipt of the wife’s entitlement there will be a clean break between her and the husband save in respect of child support.161.By way of child support the husband will pay:a.the children’s school fees and extras on the school bills;b.the cost of the children’s nannies capped at £100,000 per annum; andc.secured periodical payments for the benefit of the children at the rate of £23,100 per child per month until the relevant child is 18 or completes full-time tertiary education, if later.The sums in (b) and (c) shall be increased annually by reference to the CPI;162.The security shall be a bank guarantee for £14.32 million reducing annually by £895,000 from 1 January 2024 until 1 January 2039 when it shall come to an end.163.In Schedule 2 I have set out the various calculations used in this judgment.164.I ask counsel to agree an order to reflect my decisions. I will rule on any disputed matters.