Lump Sum Orders Under Part III Of The Matrimonial And Family Proceedings Act 1984 (Zimina v Zimin)

A husband's appeal succeeded against a lump sum order made in favour of the wife by an English court after the couple agreed a financial consent order in Russian divorce proceedings. Jenny Duggan, associate at Stewarts, examines issues that arose in Zimina v Zimin.

Original news

Zimina v Zimin [2017] EWCA Civ 1429, [2017] All ER (D) 57 (Oct)

The Court of Appeal allowed a husband's appeal against an order made by a Family Division judge that he should pay his wife a lump sum even though a Russian court had previously made a consent order following Russian divorce proceedings in which they both had legal representation. The Court of Appeal concluded that, following an evaluation of all the relevant factors, it had not been appropriate for the Family Division to have made an order under the provisions of the Matrimonial and Family Proceedings Act 1984 (MFPA 1984) relating to financial relief after an overseas divorce, and therefore its lump sum order would be set aside.

What was the background to the case?

The couple had been divorced in Russia in 2009. A financial consent order was made in the Russian proceedings settling the wife's worldwide claims. As a combined consequence of the implementation of the Russian order, operation of law and an agreement between the parties, the wife was granted $10m, the use of a house in Kensington during the children's education, and child maintenance.

In 2014, the wife applied in the English court for financial relief under MFPA 1984, Pt III, arguing that she had not been provided with sufficient financial provision under the Russian order and seeking a further award of £9.8m.

The determination of the wife's application was the subject of a split hearing in 2016—the first stage was directed to whether an order should be made at all and the second stage was directed to what order should be made. At the first stage, the judge determined 'by the narrowest of margins' that it was, in principle, appropriate for an order to be made on the wife's application. At the second stage, it was ordered that the wife was to receive a lump sum of £1,148,480.

The husband appealed and argued that no relief should have been ordered in favour of the wife under MFPA 1984, Pt III.

What issues arose for the Court of Appeal's consideration?

Under MFPA 1984, s 16(1), the court had first to consider whether in all the circumstances of the case it would be appropriate for an order for financial relief to be made by a court in England...