header-logo header-logo

22 February 2023
Issue: 8014 / Categories: Legal News , Disclosure , Divorce
printer mail-detail

Husband’s failure to disclose leaves wife in 13-year legal limbo

A family judge was wrong to take a limited approach in a case concerning an ex-husband’s deliberate and repeated non-disclosure of assets, the Court of Appeal has held.

The judge was deciding for the third time how the assets should be divided, in a long-running case where the initial order was set aside after it emerged the husband failed to disclose trust assets. The second order was later set aside after it emerged that he failed to disclose a sale of shares in his business worth £25m and potentially a further £75m.

Rather than start from scratch in the long-running case, the judge decided to follow the approach of Kingdon v Kingdon [2010] EWCA Civ 1251 and restrict his consideration only to the non-disclosed assets, leaving the rest of the award as it was. He made an additional award based on his assessment of the wife’s needs.

On appeal, at Goddard-Watts v Goddard-Watts [2023] EWCA Civ 115, Lady Justice Macur noted ‘there continues to be a dearth of authority as to the fair disposal of financial claims when earlier orders have been set aside because of fraudulent non-disclosure’.

However, she held that, while the court retains a flexibility to adapt its approach to the individual case in circumstances involving fraudulent non-disclosure, the Kingdon approach was the wrong one in Goddard-Watts since it could not be confined to a single issue. She held the husband’s fraud ‘provides the “glass” through which to address the unnecessary delay in achieving finality of the wife’s overall claim’.

Therefore, the judge should have reconsidered the wife’s application completely.

Ros Bever, partner at Irwin Mitchell, who represented the wife, said: ‘It would have been unjust and would send entirely the wrong message to allow Mr Goddard-Watts to profit in light of his deliberate failure to disclose. For justice to be done the court has to look at the complete picture and Mrs Goddard-Watts deserves and is entitled to that.’

Issue: 8014 / Categories: Legal News , Disclosure , Divorce
printer mail-details

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
back-to-top-scroll