Ken and Julia McFarlane, now 46, were married in September 1984 and have three children. Both had professional qualifications; in 1989 Mrs McFarlane moved to Freshfields, the City law firm, while in 1990 Mr McFarlane became a partner at Touche Ross, the accountancy firm. In 1991, before their second child was born, they agreed that she would give up her career to look after the children. His partnership income rose, in net terms, from £272,000 in 1998-99 to £753,000 in 2002-03.
They separated in December 2000 after 16 years of marriage and agreed to split their £3m of capital assets equally. But a dispute arose over income. Mrs McFarlane sought £70,000 for the children plus school fees, and £275,000 for herself - although she put her spending needs at £128,000. Mr McFarlane offered £20,000 per child plus school fees, and £100,000 for his ex-wife. A district judge awarded £60,00 for the children and £250,000 for the former wife during the parties' joint lives or until the wife remarried. A High Court judge cut the wife's element to £180,000, also on a joint lives basis. The Court of Appeal reinstated the £250,000 but limited payment to five years with an option for Mrs McFarlane to apply for an extension after that.
