High Court rules on financial remedy in Vince divorce

Introduction

The High Court has handed down a judgment in the financial remedy proceedings between Dale Andrew Vince, a prominent green energy entrepreneur, and his former wife, Kate Vince. The case, presided over by Mr Justice Cusworth, revolved around the division of substantial assets accumulated during their 22-year marital relationship.

Background

Dale Vince, known for his pioneering work in wind energy and as the sole shareholder of Green Britain Group Limited, faced a complex financial settlement following his divorce from Kate Vince. The couple's relationship began in 1999, with formal cohabitation starting in early 2000, leading to their marriage in 2006. They separated in 2021, with the divorce finalised in 2023.

Key Issues

The court addressed several contentious issues, including the valuation of Vince's business interests, the treatment of significant political and charitable donations made by his company, and the contribution of pre- and post-marital efforts to the business's growth. The court also considered the appropriate length of the marital relationship for financial purposes.

Business Valuation

Vince's business interests, primarily through Ecotricity Group Limited, were valued at £153.5 million pre-tax. The court adopted the valuation provided by the single joint expert, Sarah Middleton of PWC, acknowledging the inherent uncertainties in valuing private companies but noting the convergence of expert opinions in this case.

Donations and Add-Backs

The court examined substantial donations made by Vince's company to the Labour Party and the Green Britain Foundation. While the wife's application to set aside these transactions under s.37 of the Matrimonial Causes Act 1973 was dismissed, the court decided to treat £4.5 million of the unspent charitable donations as part of Vince's resources for the purpose of the financial settlement.

Pre- and Post-Marital Contributions

The court recognised Vince's pre-marital efforts in establishing his business but determined that the marital partnership, which lasted 22 years, was the primary period of value creation. Consequently, 74.16% of the business's current value was deemed matrimonial, with the wife entitled to a 50% share of this portion.

Conclusion

The court ruled that Kate Vince should receive £41.81 million, representing 50% of the marital element of the business value, payable in three tranches over two to three years. This outcome reflects a balanced consideration of the parties' contributions and the nature of the business assets.

Learn More

For more information on shareholder law, see BeCivil's guide to Shareholder Law.