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.
- Approved Judgment
- Mr Justice Mostyn:
- The correct entitlements of the wife under the modified PNA and their value
- The quantum of child support to be awarded to the wife for the benefit of the children, and whether the award should be secured.
- Background
- The PNA
- “EACH PARTY TO THIS AGREEMENT FULLY UNDERSTANDS AND AGREES THAT HE OR SHE IS RELINQUISHING VALUABLE PROPERTY RIGHTS BY SIGNING THIS AGREEMENT.”
- The disputes about the agreement
- Issues 1 & 2: The failure by the husband to set up the Joint Investment Fund
- Issue 3: The mortgage on Meadow Lane (1), Southampton, New York
- Southampton Residence
- Issues 4 & 5: Does the Modification Agreement cover Meadow Lane (2)?
- Future Residences
- Issues 6, 7, 8 & 9: Should the mortgage on the family home be taken at £18m or £16m?
- Issue 10: Is the wife entitled to a credit of half the net sale proceeds of 26 Downing Street?
- Issue 11: Should the wife be entitled to 100% or 50% of Rue Duphot Nos. 2 and 3?
- Paris, France Apartment
- Issue 12: Montfort
- Issue 13: Latent tax
- Issues 14 and 15: Should any of the wife’s legal costs paid by the husband be reimbursed to him?
- Legal Fees and Indemnification in Event of Suit to Enforce
- Issue 16: Disputed artwork
- Artwork
- Issue 17: Compensation for stolen jewellery
- Conclusion on the wife’s entitlements under the modified PNA
- £37,489,392
- £37,489,392
- The wife’s capital needs
- The reasonable annual income to be derived from the wife’s Duxbury fund
- £1,110,316
- The wife’s child maintenance claim
- 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.
- 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
- future
- This case: decision
- Conclusion
- Permission to appeal (“PTA”)
- SCHEDULE 1
