Source:forbes
Michael Freedman, 05.18.06, 11:40 AM ET
London - Paul McCartney and wife Heather Mills McCartney confirmed yesterday they were separating after four years of marriage, sparking what could be among the most expensive divorces in history. British newspapers estimate the ex-Beatles singer's wealth to be $1.3 billion and speculate that Mills, a former model, could receive as much as 25% of the fortune.
The prospects of a big payday have left Mills, 38, fighting accusations that she is a "gold digger" who married the 63-year-old McCartney for his money.
Both McCartneys have denied this. Yet divorce lawyers say their split highlights one of the most vexing issues in matrimonial law: how to split the money.
British courts have historically favored the man. The courts would allocate to women a percentage of household assets based on what they decided she reasonably needed. But all that changed in a landmark 2000 case, known as White vs. White, in which the wife successfully argued that after 30 years of marriage she was entitled to 50% of the family assets. Ever since, assets have typically been split evenly between partners regardless of who brought home the income.
"The White case highlighted the need to avoid discrimination against a wife who stayed at home," says Sandra Davis, a lawyer at Mishcon de Reya, a London firm that represented Princess Diana and Jerry Hall in their divorces. "It was not allowed any longer to suggest that the husband made a bigger contribution." Yet for shorter marriages, there are still gaping holes in matrimonial law.
Alan Kaufman, a lawyer at the London firm of Finers Stephens Innocent, says judges have enormous latitude in their decision making, taking into account factors like the length of the marriage, the number of children and the financial contributions each partner has made. As a result, he says, England has recently become the international jurisdiction of choice for divorce. At risk is anyone living in the United Kingdom, including even the many expat Americans who bring home six- and seven-figure salaries from their work in London at financial services firms like Citigroup (nyse: C - news - people ), Goldman Sachs Group (nyse: GS - news - people ) and American Express (nyse: AXP - news - people ).
In one high-profile case, a court forced a City of London fund manager, Alan Miller, to give his wife a whopping $9 million after just two and a half years of marriage. Miller appealed the decision, and next week the House of Lords will render its judgment. Legal experts suggest the case could be something of a bellwether for the superrich, including McCartney, who in recent years has brought home a paycheck worth as much as $59 million, according to Forbes' estimates.
"Everything is going to turn on this House of Lords case," says Kaufman.
