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Periodical Payments increased in McFarlane case

High Court varies periodical payments order upwards in "paradigm" compensation case

Mr Justice Charles has increased the periodical payments to the wife in the McFarlane divorce. The divorce had previously been the subject of the landmark case of Miller & McFarlane considered by the Lords in 2006.

As a result of the ruling the wife, Julia McFarlane, will now receive 40% of the husband's income as a partner at Deloitte's up to £750,000, 20% of any income between £750,000 and £1m and 10% of any income over £1m. Effectively that means she will receive a minimum £350,000 a year.

In his analysis underpinning his judgment Mr Justice Charles noted that though

“In the eyes of many the wife could live comfortably for the rest of her life if no further payments were made to her........ 

.....the plans and expectations of the parties when deciding that the wife should give up her career point strongly towards the conclusion that the relevant provision should be made for the wife from the husband’s earnings on or before his retirement if this is practical and can be fairly done”

The full text of the judgment is available now on Family Law Week.