When partners resign or retire from a partnership, the partnership agreement will normally govern their rights and responsibilities following their resignation. However, where the terms of their departure are not agreed, are they entitled to the value of...
We reached a settlement when we separated, but did not have a Court Order. My partner is now trying to claim further monies from me. Can they do this?
In May 2017, my colleague Richard Kerry wrote an article stressing the importance of a Court approved financial settlement when couples divorce.
However, a recent case will give some hope to people who believe that they have reached a final settlement without a Court Order.
The Court stated that the parties had reached a comprehensive agreement concerning the division of their limited resources following their divorce in 1992. Also, the wife, against whom the claim was being made, had arranged her “financial affairs on the assumption that her husband would not make any claim against her”.
The decision means that an informal financial agreement may be upheld in belated financial remedy proceedings, if the original agreement is considered to be fair in all the circumstances.
However, it is a risk that couples take if they do not have a final Court Order setting out the financial agreement they have reached.
The judgment did not report the legal fees incurred by each party. The case had at least three hearings and would suggest that the legal fees were substantially more than if the agreement had been contained in a Court Order when they divorced.
At Bell Lax, we can assist you in obtaining a final financial order that will conclude your financial settlement so that neither party can make a claim against the other party in the future. Please contact our team on 0121 355 0011 if you would like to discuss this.
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