CM v STS [2008] CSOH 125

This is the first time that the financial provisions of the Family Law (Scotland )Act  2006 for co habitants have been judicially considered. In this action the pursuer seeks an order in terms of section 28(2)(a) of the Family Law (Scotland) Act 2006 for payment of £50,000 and an order in terms of section 28(2)(b) of that Act for payment by the defender of £20,000.

The parties cohabited as husband and wife from January 1998 and separated on 24 May 2006. There are two children of the relationship who live with the pursuer and have regular contact with the defender.

The thrust of the pursuer's case was that she has suffered economic disadvantage in the interests of the defender and the parties' children by giving up full time employment and losing certain opportunities. It was also said that the defender has gained economic advantage by reason of certain benefits he obtained, inter alia, from the fact of cohabitation and the pursuer's looking after the children.

Lord Matthews found it inappropriate to make any award under section 28(2)(a), subject to offsetting a profit  of £1,094.69 the pursuer made from jointly held endowment  policies against a  payment of £2,555  due to be paid by the defender in respect of tax credits.  This leaves a balancing payment  of £1,460.31 in favour of the pursuer. The total costs of childcare assessed at £25, 729.20 are broadly divided in two and an order under section 28(2)(b) made for payment by the defender to the pursuer of the sum of £13,000 to be paid by installments of £400 per month.

Full Judgment