Attempt to reduce divorce settlement refused in recognition of contribution to hotelier’s business

Case report: Davies v Davies [2012] EWCA Civ 2012

Linda Pope acted for the wife in a negotiating a divorce settlement which went to the Court of Appeal after the husband disputed the award of a lump sum of £2.2 million, in addition to the matrimonial home.  The sum was awarded by the court in recognition of the wife’s contribution to the success of the family hotel business, and it amounted to one-third of the available assets.

The husband disputed the contribution by the wife who maintained that she had, by carrying out several roles in the business, energetically contributed to its marketing and its dramatic growth in the period she was directly involved.  He sought that the lump sum should be reduced to £1.5 million.  The case involved a forensic valuation of the hotel accounts at the time it was inherited by husband and at the time of the divorce, and considerations of the implications of goodwill and the value of a short lease.

Permission to appeal granted to the husband, but his appeal dismissed.

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