Balancing health needs with a just outcome

In the case of ND v GD [2021] EWFC 53, Peel J had to consider and carefully balance sensitive and conflicting factors – namely, the wife’s special health needs and the parties’ long marriage against the husband’s significant non-matrimonial assets – and how these should be dealt with to achieve a fair outcome.

The parties were married for 23 years and have two adult children, both studying at university. The wife was diagnosed with Young Onset Alzheimer’s (YOA) shortly after the parties’ separation in 2018.  Her condition made her a vulnerable party and she was represented by her litigation friend.  YOA meant that the wife had specific health needs and various experts gave evidence in respect of assessing the wife’s care needs, what her life expectancy was, and what lump sum would be necessary to capitalise her income and future care needs, taking into account her life expectancy. It was accepted that the wife would inevitably require much greater support in the future as a result of her having a neurodegenerative condition.

In 2013, five years prior to separation, the husband inherited his late mother’s estate worth £3.6 million at probate. This comprised a residential property portfolio which had largely been kept separate from the parties’ other assets. The matrimonial assets were comparatively relatively modest, totalling some £750,000 including pensions and of which about £380,000 was the net equity in the family home. At the date of the final hearing the net assets were around £2.6 million.

The wife’s needs

The case concerned the wife’s needs and how these would be met - particularly what housing and income fund would be appropriate for her in light of her life expectancy - considering that the ‘great bulk of the assets originate from H’s mother’s wealth’.

In terms of the wife’s overall needs, Peel J said on paragraph 62: "W's needs must be informed by all the circumstances of this case, in particular the length of the marriage, her medical condition, and the provenance of the wealth. It seems to me to be reasonable to accede to W's wish to be independent, living at home, for as long as possible, for reasons of her own contentment and quality of life; of particular importance, in my view, is to enable her to maintain a family home where the children can come and stay. “

The application of the principles concerning needs was of central relevance in this case. Indeed, Peel J noted that ‘needs are an elastic concept’ and that ‘they cannot be looked at in isolation’.

Firstly, Peel J had to consider the nature of the assets and whether the fact that income which derived from the husband’s non-matrimonial assets, which had been used to meet the wife’s needs, essentially converted these assets into marital assets therefore capable of being subject to the sharing principle. Referencing WX v HX [2021] EWHC 242 Peel J found that the assets had not been converted to marital assets notwithstanding the application of income.

The wife’s diagnosis of YOA occurred one month after separation, Peel J also had to consider whether the wife’s needs should be viewed as non ‘relationship generated’, as submitted by counsel for the husband, and therefore the extent to which those needs should be met by the husband. Peel J referenced section 25(2)(e) Matrimonial Causes Act 1973 and Lord Nicholls in Miller and McFarlane [2006] UKHL 24 and concluded the statute does not limit consideration of needs in this way” – and also commented that it would be ‘odd’ if the wife’s health was ignored one month post separation, but would have been considered one month prior to it.