KC v RC & Anor [2015] EWFC B215 (24 November 2015)

KC v RC & Anor [2015] EWFC B215 (24 November 2015)

The wife failed to prove the contract between the husband and GBL was a sham; the contract was genuine. The husband's nominee shareholding arrangement in GFL was found to be a device to present a false appearance to third parties, but the court concluded the husband has access to family wealth regardless of formal arrangements. The husband's dishonesty and collusion with family members justified attributing to him resources sufficient to meet the wife's and children's needs. The court ordered the husband to pay the wife a lump sum of £500,000 to enable her to rehouse, with a charge over Q ranking ahead of GBL's charge for any unpaid balance, and dismissed the husband's claims for...

Citation
[2015] EWFC B215
Parties
Applicant (husband): K C; Respondent (wife): R C; Intervenor/third Party: GBL (represented by Raj)
Jurisdiction
England and Wales
Judgment Date
24 November 2015
Procedural Posture
Ancillary Relief (financial Remedy) Proceedings Following Divorce / Final Hearing and Judgment
Outcome
Lump sum order in favour of the wife; husband's claims dismissed; charge in favour of wife over Q to rank ahead of GBL's charge; no order on school fees; husband's maintenance claims dismissed.
Legal Topics
Ancillary Relief, Financial Remedies, Sham Transactions, Section 25 Matrimonial Causes Act 1973, Section 37 Matrimonial Causes Act 1973, Clean Break, Needs Based Assessment, Nominee Shareholdings
Family Law Ancillary Relief Financial Remedies Sham Transactions Section 25 Matrimonial Causes Act 1973 Section 37 Matrimonial Causes Act 1973 Clean Break Needs Based Assessment +1 more

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Parties

K C

Applicant (husband)

R C

Respondent (wife)

GBL (represented by Raj)

Intervenor/third Party

Procedural Posture

Ancillary Relief (financial Remedy) Proceedings Following Divorce / Final Hearing and Judgment

Legal Issues

  1. 1 Whether the contract between the husband and GBL was a sham
  2. 2 Whether the husband's shareholding in GFL is a sham/nominee arrangement
  3. 3 What assets and resources are available for division

Ratio Decidendi

The wife failed to prove the contract between the husband and GBL was a sham; the contract was genuine. The husband's nominee shareholding arrangement in GFL was found to be a device to present a false appearance to third parties, but the court concluded the husband has access to family wealth regardless of formal arrangements. The husband's dishonesty and collusion with family members justified attributing to him resources sufficient to meet the wife's and children's needs. The court ordered the husband to pay the wife a lump sum of £500,000 to enable her to rehouse, with a charge over Q ranking ahead of GBL's charge for any unpaid balance, and dismissed the husband's claims for...

Court Disposition

Lump sum order in favour of the wife; husband's claims dismissed; charge in favour of wife over Q to rank ahead of GBL's charge; no order on school fees; husband's maintenance claims dismissed.

Orders

  • Husband to pay wife a lump sum of £500,000 to enable her to rehouse.
  • Wife to have a charge over property Q for any unpaid balance of the lump sum, ranking ahead of GBL's charge.