Article contents
Rethinking ancillary relief on divorce in Ireland: the challenges and opportunities
Published online by Cambridge University Press: 02 January 2018
Abstract
This paper considers the highly discretionary equitable redistribution scheme governing ancillary relief in Ireland pursuant to the Family Law (Divorce) Act 1996. The paper begins by drawing on the most up-to-data empirical data highlighting the principal difficulties inherent in the Irish ancillary relief system as currently applied and placing the spotlight firmly on the need for reform. It then considers the constitutional parameters that limit any change to the ancillary relief system applied before presenting a detailed proposal for reform. It concludes that although legislative change may be politically challenging, the commonly cited constitutional impediments to reform do not preclude the adoption of an alternative ancillary relief scheme. Instead, the paper argues that the adoption of a more rule-oriented, ‘pillared’, approach to ancillary relief provision may better resolve the challenges currently faced and ought to be afforded serious consideration in Ireland.
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- Research Article
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- Copyright © Society of Legal Scholars 2016
Footnotes
The author gratefully acknowledges the helpful comments of Dr Una Woods, School of Law, University of Limerick and Professor Anne Barlow, School of Law, University of Exeter on an earlier draft of this paper. The author also wishes to thank the anonymous reviewers, whose insights and suggestions were greatly appreciated.
References
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3. The financial proceedings that accompany divorce (or judicial separation) cases in Ireland are referred to as ‘ancillary relief’ proceedings. Note that in England, pursuant to the Family Procedure Rules 2010, ‘ancillary relief’ cases have been retitled ‘financial remedy’ cases: see r 2.3 for interpretation.
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23. Ibid, p 266.
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32. Buckley, above n 5, at 78.
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41. Parkinson, above n 16.
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49. For an overview of the historical development of ancillary relief provision in Ireland, see Crowley, above n 46.
50. See above.
51. Indeed, the inclusion of some discretion is, in any case, preferable to rigid rules and flexibility is incorporated in some format in the ancillary relief scheme of almost every jurisdiction: see Crowley, above n 7; Scherpe above n 36. Furthermore, it has been suggested that issues regarding the separation of powers could arise if the role of the judiciary is removed completely:Google Scholar see Crowley, L ‘Equal versus equitable division of marital assets – what can be learned from the experiences of other jurisdictions? Part Ii’ (2007) 10(2) Irish J Fam L 12.Google Scholar
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56. What the required triggering event(s) would be would be a matter for the legislature to specify.
57. See Buckley, above n 52, at 71; Buckley, above n 6.
58. Note that the legitimacy of the current redistributive powers was confirmed in TF v Ireland [1995] 1 IR 321 and again in LB v Ireland [2006] IEHC 275, [2008] 1 IR 134.
59. Although this proposal draws inspiration from a number of sources, most notably past and present regimes applied in British Columbia, Canada (see the Family Relations Act 1996 and the Family Law Act 2011), the proposal is novel and does not replicate any existing regime.
60. See above n 52.
61. For an early argument to this effect, see Weitzman, L The Divorce Revolution (New York: Free Press, 1985) pp 70–109. Although in the interim her statistics have been subject to some criticism,Google Scholar Crowley, above n 7, at 391 notes ‘it appears well-established that the economic consequences of divorce are significantly worse for long-term homemakers and their children than they are for the breadwinner spouse’. See also Weitzman, L and Maclean, M (eds) Economic Consequences or Divorce (Oxford: Oxford University Press, 1992).Google ScholarPubMed
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64. Ibid, p 11. The ‘strong negative effects’ of the presence of pre-school children on the probability of participation of the mother continue to be observed:see Russell, H et al A Woman's Place: Female Participation in the Irish Labour Market (Dublin: Equality Authority and Economic and Social Research Institute, 2012), p 39. AsGoogle Scholar Miles, above n 28, at 391 explained, ‘formal equality … neglects the parties' respective earning capacities – 50% plus substantial earning power is self-evidently better than 50% and no earning power’.
65. Or perhaps is currently achieved.
66. Scherpe, above n 36, p 476.
67. Ibid, p 476.
68. See SD v BD [2007] IEHC 492 and T v T [2002] IESC 68. See also Moore, E ‘The significance of “home-maker” contributions upon divorce’ (2007) 10(1) Irish J Fam L 15 Google Scholar, who noted that although ‘the judiciary recognises the role of the women in the home, this recognition has different implications for women with different levels of education. The beneficiaries were women who were in a position to adopt a professional working life. However, women with fewer educational advantages, who will remain in the home after marital breakdown, are not rewarded equally by the judiciary.’ Therefore, poorer outcomes for home-makers appeared to be attributed to a failure to value domestic contributions rather than issues connected with relationship-generated loss and compensation.
69. British Columbia Law Reform Commission Property Rights on Marriage Breakdown, Working Paper (no 63, 1989) IV(B)(5)(a).
70. Scherpe, J and Miles, J ‘Property and financial support between spouses’ in Eekelaar, J and George, R (eds) Routledge Handbook of Family Law and Policy (Oxford: Routledge, 2014) p 145 Google Scholar, referring to Council Regulation (EC) 4/2009, which was transposed into Irish law with European Communities (Maintenance) Regulations 2011. For more, see Crowley, above n 12, pp 767–773. For an overview of how such a pillared approach operates in practice, see A Dutta ‘Germany’ in Scherpe, above n 36, pp 158–200, esp pp 158–166. To some extent, a similar approach also seems to apply in certain Canadian provinces: see eg the Family Law Act 2011 applied in British Columbia.
71. These influencing factors were clearly implied in the Law Commission for England and Wales report, above n 31, ch 8.
72. For a list of civil law jurisdictions adopting such an approach, see Scherpe, above n 36, p 449. A similar scheme is also applied in a number of US states and Canadian provinces, and was mooted by the Law Commission for England and Wales Matrimonial Property, Needs and Agreements – a Supplementary Consultation Paper (SCP no 208, 2012).
73. See below.
74. A similar category of assets is also subject to sharing in Austria, Singapore, New Zealand and, albeit to a lesser extent, Scotland: see Scherpe, above n 36.
75. Special protection is already afforded to the family home by s 56 of the Succession Act 1965, which allows for the appropriation of the home by the surviving spouse on the death of the owner-spouse in certain circumstances, and s 3 of the Family Home Protection Act, which restricts the unilateral disposition of the home: see below. See also Law Commission for England and Wales, above n 31, para 8.32.
76. Burgoyne, C and Sonnenberg, S ‘Financial practices in cohabiting heterosexual couples: a perspective from economic psychology’ in Miles, J and Probert, R (eds) Sharing Lives, Dividing Assets (Oxford: Hart Publishing, 2009). It is likely that similar trends would be evident in Ireland.Google Scholar
77. See Law Commission for England and Wales, above n 31, paras 8.51–8.56.
78. This would appear to reflect current Irish policy. Crowley, above n 12, p 631 notes that, ‘The courts have shown themselves willing to make orders in respect of a business or farm owned by one spouse, or at least award a share of the value of the business to the non-owning spouse based on the spousal contributions in the course of the marriage.’ Vis-à-vis pensions, see O'Shea, above n 18, p 69. A similar test was applied in British Columbia, Canada pursuant to s 59(2) of the Family Relations Act 1996.
79. No link would need to be evidenced between the actual indirect contributions and the business. However, contributions would be subject to the de minimus principle.
80. The exclusion of such assets is ‘becoming increasingly common in common law jurisdictions’: see Scherpe and Miles, above n 70, p 144. Moreover, in an Irish context, inheritance can be a factor in whether or not assets ought to be divided – see C v C [2005] IEHC 276 – although it is usually only relevant where assets exceed needs.
81. Eekelaar, J ‘Asset distribution on divorce – time and property’ (2003) Fam L 828.Google Scholar
82. Having an incremental scale (for quasi-family assets) would seem to fit with the approach of the Irish courts as identified by O'Shea, above n 18, p 121, where she noted, ‘The Circuit Court did generally recognise the contributions of the wife, in accordance with Art 41.2.1, where there were children and a long-term marriage.’ Note that although this approach would also fit with the contribution-based rationale for sharing assets pursuant to this proposal, it would not be appropriate in the sharing of family assets, which is justified by the partnership view of marriage.
83. See Cooke, E, Barlow, A and Callus, T Community of Property: A Regime for England and Wales? (London: Nuffield Foundation, 2006) pp 34–38.Google Scholar
84. Somewhat similarly, albeit in reverse, see s 9 of the Family Law (Scotland) Act 1985, which expressly identifies statutory criteria that must be satisfied in order to justify making any financial order, as discussed in Crowley, above n 7, at 391–394.
85. See Cooke, E ‘Miller/McFarlane: law in search of discrimination’ (2007) 19 Child & Fam L Q 98 at 101. However, it is submitted that in most cases such contributions would be considered equal.Google Scholar
86. What these criteria are would have to be carefully considered and would, no doubt, be reflective of the overall policy direction of any such reform. One ground for departure that is included in a number of jurisdictions is if there was a considerable disparity in the value of the assets held by each spouse at the end of the relationship.
87. Although the scope of the community for sharing might, in larger-value cases, appear somewhat conservative, it is submitted that such an approach is more in line with the development of matrimonial property law in Ireland to date, which has been built on incremental progress towards entitlement-based provision. For general discussion of the movement of family law from a welfare-based approach to an entitlement-based approach, see Eekelaar, above n 81.
88. An opt-out clause is already in place in Irish matrimonial property law, as it is possible to contract out of an entitlement to the legal right share: see s 113 of the Succession Act 1965.
89. For discussion of the current Irish position on pre-nuptial agreements, see L Crowley ‘Ireland’ in Scherpe, above n 36, pp 200–229; Crowley, above n 12, pp 567–573; Buckley, La ‘Ante-nuptial agreements and “proper provision”: an Irish response to Radmacher v Granatino ’ (2011) 14(1) Irish J Fam L 3.Google Scholar
90. See Ellman, I ‘The theory of alimony’ (1989) 77 Cal L Rev 1.CrossRefGoogle Scholar
91. Pursuant to s 91(2) of the Constitution Act 1867, marriage and divorce are within federal jurisdiction in Canada.
92. Rogerson, C and Thompson, R ‘The Canadian experiment with spousal support guidelines’ (2011–2012) 45 Fam L Q 241 at 246.Google Scholar
93. Spousal support orders ought to: ‘(a) recognize any economic advantages or disadvantages to the spouses arising from the marriage or its breakdown; (b) apportion between the spouses any financial consequences arising from the care of any child of the marriage over and above any obligation for the support of any child of the marriage; (c) relieve any economic hardship of the spouses arising from the breakdown of the marriage; and (d) in so far as practicable, promote the economic self-sufficiency of each spouse within a reasonable period of time’.
94. Rogerson and Thompson, above n 92, at 247.
95. C Rogerson Developing Spousal Support Guidelines in Canada: Beginning the Discussion (December 2002); available at http://www.justice.gc.ca/eng/rp-pr/fl-lf/spousal-epoux/ss-pae/index.html (accessed 8 January 2015). See also Gordon, M ‘Spousal support guidelines and the American experience: moving beyond discretion’ (2002) 19 Can J Fam L 247. Much of this confusion arose from the conflicting decisions ofGoogle Scholar Pelech v Pelech [1987] 1 SCR 801; Moge v Moge [1992] 3 SCR 813; and Bracklow v Bracklow [1999] 1 SCR 420.
96. The guidelines were the result of a 7-year project directed by Professors Carol Rogerson and Rollie Thompson.
97. See the Department of Justice Canada Spousal Support Advisory Guidelines (July 2008); available at http://www.justice.gc.ca/eng/rp-pr/fl-lf/spousal-epoux/spag/pdf/SSAG_eng.pdf (accessed 2 October 2014).
98. Rogerson, C ‘Child support, spousal support and the turn to guidelines’ in Eekelaar, and George, (eds) above n 70, p 159.Google Scholar
99. For a detailed discussion of the various principles that may underpin spousal support provision, see Law Commission for England and Wales, above n 31, ch 3.
100. The amount and duration of support increases incrementally with the length of the marriage.
101. The need for software causes specific problems for those litigants who do not have legal representation. Solutions are being sought, as noted in Rogerson and Thomson, above n 92, at 266; however, it is hoped that free online software will become available to complete these calculations.
102. These may include illness, disability, disproportionate losses or gains in a short marriage etc.
103. Rogerson and Thompson, above n 92, at 242.
104. Rogerson, above n 98, p 162. Only 8 months after the release of a draft version of the guidelines in 2005, they were described as a ‘useful tool’ by the British Columbia Court of Appeal, one of the largest provinces in Canada: see Yemchuk v Yemchuck [2005] BCCA 406 per Prowse J. For a recent analysis of the guidelines, see Thompson, R ‘To vary, to review, perchance to change: changing spousal support’ (2012) 31 Can Fam L Q 355.Google Scholar
105. Rogerson and Thompson, above n 92, at 263.
106. Note that it has been observed, ‘Canadian law has been shaped by the public policy goal of ameliorating the negative economic consequences of separation and divorce experienced primarily by women and children.’ Rogerson, C ‘Child and spousal support in Canada: the guidelines approach part 2’ (2012) 1 Irish J Fam L 18. For a clear exposition of the challenges faced by women on divorce in Canada,Google Scholar see R Leckey ‘Families in the eyes of the law: contemporary challenges and the grip of the past’, research paper prepared for the Institute for Research on Public Policy; available at http://irpp.org/research-studies/choices-vol15-no8/ (accessed 8 January 2015). Similar challenges appear to exist in Ireland: see above.
107. Rogerson, above n 106.
108. Rogerson and Thompson, above n 92, at 262. Prior to the introduction of the guidelines, it was observed that, ‘The lack of certainty, predictability and consistency in the law, not to mention realities such as clients' limited resources, lack of legal aid and personal circumstances such as an imbalance in bargaining power, made spousal support claims frequently unadvisable or impractical in some regions.’ See Canadian Bar Association ‘Spousal support advisory guidelines’ (May 2007); available at https://www.cba.org/cba/submissions/pdf/07-29-eng.pdf (accessed 8 January 2015) p 2.
109. For a full analysis of the strengths and weaknesses of the SSAG, see Rogerson and Thompson, above n 92.
110. The Canadian guidelines are preferred here to the American Law Institute's equivalent due to the more flexible format of the former: see American Law Institute Principles of the Law of Family Dissolution: Analysis and Recommendations (2002). For example, the Canadian guidelines result in a suitable range of outcomes while the American Law Institute guidelines produce a single-figure outcome.
111. Scherpe and Miles, above n 70, p 149.
112. Law Commission for England and Wales, above n 31, para 1.29.
113. Although in Canada, the Spousal Support Advisory Guidelines are non-statutory in nature, they have received appellate court approval and are widely applied. However, in an Irish context, it is suggested that given the cautious approach adopted by the judiciary vis-à-vis ancillary relief and the attachment of many of the judiciary to wide-ranging discretion, it would be better to have such guidelines on a statutory basis. Note also that O'Higgins J in MP v AP [2005] IEHC 326 did note ‘although the maintenance agreed between the parties was adequate, it would be wrong to ignore the huge disparity in income between the parties’ (emphasis added).
114. O'Shea, above n 18, p 510 found that where an ongoing payment was made, 60% had €50 per week spousal maintenance, suggesting that trends may be apparent in the courts. Moreover, the inclusion of guidelines akin to those in Canada, incorporating the ‘merger over time’ theory, notably where there are no children, would fit with the temporal accretion model proposed for quasi-family assets.
115. Rogerson, above n 98, at 157.
116. The incorporation of such a formulaic approach would also counteract the difficulties observed in O'Shea, above n 18, p 132, where it was noted that the ‘over-riding basis of evaluation’ for child and spousal maintenance was ‘the need of the primary carer of dependent children of the marriage’, with no attempt made to balance the needs of payor spouse with dependent spouse.
117. See JD V DD [1997] 3 IR 64. See also Murray J in T v T [2002] 3 IR 334 at 407. However, see G v G [2011] IESC 40, where the Supreme Court noted that although ‘Irish law does not establish a right to a “clean break” …. it is a legitimate aspiration’.
118. This ability to reconfigure the overall package is important in light of empirical evidence that demonstrates the desire of many Irish couples to include some element of clean break, by capitalising the value of the support or pension payments or converting such relief into an interest in property where possible: see Courts Service, above n 15. See also Buckley, above n 5. Such ‘restructuring’ is also possible in Canada: see Rogerson, above n 106.
119. Buckley, above n 52, at 74. This fear was also highlighted by Dewar, above n 37, at 309.
120. See Family Law (Divorce) Act 1996, s 15(2)(b).
121. Where there are dependent children, the award of exclusive occupation, as Miles notes, is really ‘an aspect of provision for the child rather than for the spouse’: see Law Commission for England and Wales, above n 31, para 3.45. Where there are no children, but a spouse wishes to remain in the home, such an order could be made in full or partial satisfaction of the recipient spouse's entitlements under the proposal. In order to ensure an accurate valuation of the benefit arising from the order, actuarial calculations would have to take place. Alternatively, if such an order was made in addition to the spousal support and property entitlements of the recipient spouse, and not as part of a reconfigured package, it would represent additional provision on the basis of need.
122. O'Shea, above n 18, p 175. Crowley, above n 12, p 632 notes, ‘it is well settled that where there are younger children and where it is financially permissible, that the parent with custody should remain in the family home’.
123. For analysis of the importance of objective-driven discretion, see Crowley, above n 7.
124. See Ellman, above n 90; Miles, above n 28.
125. Parkinson, P ‘The yardstick of equality: assessing contributions in Australia and England’ (2005) 19 Int'l JL Pol'y & Fam 163 at 174. Moreover,CrossRefGoogle Scholar see Miles, above n 28, at 389, who notes, ‘[I]n ordinary cases, the fact that the parties’ needs will be determinative may make notionally starting at 50:50 appear pointless. Even here, however, there may be something intangible (and, more concretely, an enhancement of bargaining position) to be gained from the idea that each party is prima facie entitled to an equal share of the capital and that a non-owner applicant is not merely a ‘needy supplicant’ (emphasis in original).
126. While needs are legitimately prioritised in many cases, the entire provision made can be interpreted as being needs-based, diminishing the value of the martial partnership or the contributions made. This proposal seeks to rectify this perception.
127. [2002] IESC 68, [2003] 1 ILRM 321. This seems to fly in the face of ‘the almost universal understanding that certain assets should be shared equally on divorce’, as noted in Scherpe and Miles, above n 70, p 152. See also Buckley, La ‘ “Proper provision” and “property division”: partnership in Irish matrimonial property law in the wake of T v T ’ (2004) 3 Irish J Fam L 9 at 11.Google Scholar
128. [2011] IESC 40 [22]. The court went on to explain at [25], ‘Proper provision means that the provision is reasonable in all the circumstances.’
129. Scherpe, above n 36, p 465. See also Crowley, above n 89, at 210.
130. [2002] IESC 68, [2003] 1 ILRM 321. See also GB v AB [2007] IEHC 491.
131. [2012] IEHC 461 at [13].
132. Buckley, above n 6, at 86 (emphasis added).
133. Pursuant to s 3, the written consent of the non-owning spouse is required for the conveyance of any interest in the family home, subject only to limited exceptions. Indeed, demonstrating the general feeling at the time, upon the introduction of the Family Home Protection Bill, Senator Robinson described it ‘as an interim measure on the road to a proper and just system of co-ownership of the matrimonial home’. Seanad Deb, 1 July 1976, vol 84, col 923. For more, see O'Sullivan, K ‘Protection against the unilateral disposition of the family home: an Irish perspective’ (2013) 27(3) Int'l J L Pol'y & Fam 399.CrossRefGoogle Scholar
134. See O' Sullivan, K ‘Spousal disinheritance protections under Irish law: a proposal for reform’ (2012) 41(3) Common L World Rev 246 at 254–257 for discussion of the rationale for the provision of the legal right share.Google Scholar
135. Buckley, above n 127. However, s 7 of the 1993 Bill permitted a married couple or a couple contemplating marriage to opt out or exclude the application of s 4.
136. Report of the Commission on the Status of Women (Dublin: Stationery Office, 1972) p 175.Google ScholarPubMed
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138. Seanad Deb, 27 October 1993, vol 137, col 1539.
139. Seanad Deb, 27 October 1993, vol 137, col 1540.
140. See Report of the Second Commission on the Status of Women, above n 137, p 39.Google Scholar See also Buckley, above n 52, at 68.
141. See Dewar, above n 37.
142. Therefore, despite development of a sharing principle in England and Wales since White v White [2001] 1 AC 596, the Irish system, overall, may in fact be closer to a community of property style regime than our neighbours across the Irish Sea.
143. Maclean, M and Eekelaar, J ‘The perils of reforming family law and the increasing need for empirical research, 1980–2008’ in Miles and Probert, above n 76, p 26.Google Scholar
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145. Martin, F ‘The changing face of family law in Ireland’ (2005) 5(1) Jud Stud Inst J 16 at 33.Google Scholar
146. See Courts Service Courts Service News (2011) 13(3) 9; available at http://www.courts.ie/Courts.ie/library3.nsf/(WebFiles)/ADF65460532B82B38025795E0058CC3F/$FILE/CSN%20Volume%2013%20Issue%203%20December%202011.pdf (accessed 21 June 2012).
147. Shatter, above n 53, p 836. However, these comments were directed at the Report of the Second Commission on the Status of Women, above n 137, which sought an automatic joint ownership of family home.
148. Buckley, above n 52, at 71.
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