There are a number of professions that pose an interesting conundrum when approaching a financial agreement during divorce. These are occupations that generally have an element of being time-limited, such as sports players and models. 

While at the time of the divorce, the high-earning spouse may be income rich, the chances are that this income will decrease massively in the future, either when someone has become too old to play or compete, or through injury. While the lucky few will go on to a lucrative second career, such as Gary Lineker, many more will find themselves in work that pays a lesser wage.

Depending on the circumstances of the split, there’s potential for extravagant claims against the high earner that might include a high percentage share of the existing capital plus a mortgage guaranteed by them, plus a significantly high maintenance payment. This could potentially cripple the high earner in the future, when their earning drops and they can no longer services mortgage payments, for example.

It is important that any financial agreement is based on future projections rather than being settled on current earnings. The approach from the start is to be alive to the fact that the current income isn’t going to go on forever, and to get projections for potential future earnings from another, less lucrative, career.

For example, periodical payments orders can have future reductions built into them based on projections. So payments made now could be reduced in five years’ time, then again in ten years’ time or when that high income reduces/ceases.

There is an element of risk involved for both parties. For the claimant, if their former spouse clinches a high earning deal, or conversely, if the former spouse becomes injured and is unable to secure future work.

Generally speaking, it’s better to negotiate an agreement where risk is shared rather than one person taking the lion’s share of the capital and the other keeping their income intact; although this may result in a higher borrowing capacity, the ability to service a large mortgage will diminish over time.

A court will be aware of the fact that certain careers are time limited and won’t stand until pension age. So where an accountant or teacher will normally work until retirement, the average age of a footballer retiring from their profession is 35, a model may only be 25.

There is another area to be aware of. Many successful young people in these types of careers will splash the cash on possessions, whether that’s luxury jewellery, supercars, handbags or watches. During a divorce, these items are seen as assets, and their value taken into account as part of the financial agreement. 

Wealth management advice should certainly provide advice in a precautionary manner on how such assets should be managed with a view to future changes in a marriage. Pre-nuptial agreements can be useful here.

The opposite situation, of course, is when someone finds success at a later stage of life, for example an artist whose work suddenly becomes collectible, or an author whose novel is snapped up for a Hollywood blockbuster.

Understanding the impact of a scenario like this when it comes to a divorce is tricky, and the timing is crucial. If the couple have lived an impoverished life where one has supported the other in their creative endeavours, it could be strongly argued that this spouse has lost out, should fame and fortune suddenly arrive.

The key issues here are when the wealth occurred, what role either party had in creating the wealth, including aspects of support, and whether the success can be pinpointed to ‘genius talent’ where an argument could be made that this talent allows them to retain more than 50 percent of the assets. However, what makes a genius?

It certainly worked for Michael Cowan, credited with bringing the black bin liner to Britain, who was awarded 62 percent in his financial agreement. Footballer Ryan Giggs, however, who was poised to make the claim, decided to settle his divorce out of court, perhaps sensibly.

 In conclusion, addressing the unique challenges of divorce in time-limited, high-earning careers necessitates a forward-thinking approach, incorporating future projections and equitable financial agreements to safeguard both parties' interests.