Conclude your financial matters when divorcing
When a husband and wife experience relationship breakdown and sort out the financial aspect of the divorce, it is vital that individuals understand and are clear on all of the elements related to family law.
Recently a case was decided locally which dealt with financial issues even though the couple had divorced some years ago. The wife applied to the court for a lump sum in return for the transfer of their jointly owned former matrimonial home to the husband. The lump sum was declined.
The wife had petitioned for divorce in February 1994 but had not proceeded with her financial claims. At the date of the divorce in August 1994 the matrimonial home was in negative equity. The wife subsequently remarried in 1995.
Some time later the property was still in negative equity but in 1997 an agreement was reached that the property be transferred to the husband with no payment to the wife provided that she could be removed from her obligations under the mortgage. Due to mortgage arrears the Building Society was not prepared to release her and the transfer never took place.
By 2005 the husband had remarried and property was in substantial positive equity. As a result the wife issued an application for the property to be transferred to the husband and for a lump sum payment to her representing her half share of the equity. The district judge upheld the 1997 agreement and transferred the property but refused the wife's application for a lump sum. The wife appealed, as she believed this outcome unfair. An issue also arose as to whether an order transferring the property to the husband could be made because he had remarried.
The judge at the Court of Appeal rejected the wife's appeal for a lump sum and approved the transfer of the property to the husband. It was also determined that in the circumstances of this case the order in the husband's favour could be made notwithstanding his remarriage.
Justine Flack, Solicitor at Clarkes Solicitors who was representing the husband said:
"Justice was delivered in this case as the judge upheld the agreement which the parties had reached in 1997. However, this outcome was not guaranteed. This case shows the importance of properly concluding the financial matters at the time of the divorce. It also demonstrates the potential risks to respondents in divorce proceedings who remarry before doing so ".
