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Don’t promise what you cannot deliver when trying to settle a financial case on divorce

Date:18 AUG 2015
Third slide
In most of life this is a good motto. But especially so when the financial picture involves third parties.

In the recent case of Birch v Birch [2015] EWCA Civ 833 the English Court of Appeal was asked to reconsider a financial promise which the wife had made but could not easily keep.

Mr and Mrs Birch had 2 children a daughter born in 2000 and a son in 2001. On divorce they had successfully negotiated their financial settlement in October 2010 and in particular they worked out what they wanted to do about the family home then in joint names. The wife by an undertaking was to make the monthly payments to the mortgage lender and to 'use her best endeavours' to make the lender release the husband from the mortgage on the transfer of the house to her. If he was not released in the next 2 years she agreed the house should be sold. Other arrangements were agreed and the court order went on to provide neither should have any other claims against the other.

After a year Mrs Birch...

Read the full article here.