The Family Court recently resolved a contentious issue between a divorced couple over whether the husband could use funds from their financial settlement to remortgage his home.

Background of the Case

The couple, who have a daughter needing lifelong care due to a chromosomal disorder, were awarded £5 million because of antenatal failures during the wife’s pregnancy. The central dispute involved £900,000 held in trust for their daughter by each party. The court’s financial settlement order specified that this money should be used to purchase accommodation and be released to their daughter upon specific trigger events.

How the Funds Were Utilised

The wife used her share to pay off her mortgage on a London property. The husband allocated £250,000 into an account and used £650,000 towards a property in London where he intended to reside.

The Dispute Over Remortgaging

The conflict arose when the husband needed to remortgage his property. He was uncertain whether the original order allowed this without the wife’s consent or court approval. He sought to use the £250,000 to secure a £750,000 mortgage instead of a £1 million one. The order clearly stipulated that the wife’s consent was necessary, and without it, the husband required court authorisation.

Court’s Decision

The wife refused to give consent unless he agreed to new child arrangements and other matters. He declined and returned to court. Mr Justice Peel granted the remortgage application, emphasising that it was essential for the husband to reside in the home, had no adverse financial impact on their daughter, and was in line with the original order’s intentions.

Approval of Additional Funds

The application to use the additional £250,000 for the mortgage was also approved, as it stabilised the husband’s housing situation and complied with the initial financial arrangement. The judge noted that the wife’s mistrust of the husband had influenced her objections to what was essentially a straightforward request. The protective measures in the original order remained intact, ensuring their daughter’s interests were safeguarded.

Case Reference
Court Settles Dispute Between Divorced Couple Over Remortgaging House
C v S
[2024] EWFC 109
May 2024
Mr Justice Peel