ND v SD & Ors

ND v SD & Ors

The ABC Trust created on 3 August 2007 is not a sham; the husband settled his 50% beneficial interest in C Limited and D Limited into the trust for the benefit of the children; the wife retains a 50% beneficial interest in C Limited; the 2014 Trust Deed is a sham and of no legal effect; section 37 Matrimonial Causes Act 1973 is not engaged as the trust was not created to defeat the wife's claims.

Parties
Applicant: ND; 1st Respondent: SD; 2nd Respondent: Y Trustees Limited; 3rd Respondent: PH
Jurisdiction
England and Wales
Judgment Date
21 June 2017
Procedural Posture
Divorce/financial Remedy / Preliminary Issue Judgment
Outcome
Declaratory relief granted; ABC Trust not a sham; wife retains 50% beneficial interest in C Limited; 2014 Trust Deed declared a sham; section 37 application dismissed.
Legal Topics
Sham Trusts, Beneficial Ownership, Financial Remedy, Section 37 Matrimonial Causes Act 1973, Declaration of Trust, Asset Protection
Family Law Trusts Law Sham Trusts Beneficial Ownership Financial Remedy Section 37 Matrimonial Causes Act 1973 Declaration of Trust Asset Protection

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 11 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

ND

Applicant

SD

1st Respondent

Y Trustees Limited

2nd Respondent

PH

3rd Respondent

Procedural Posture

Divorce/financial Remedy / Preliminary Issue Judgment

Legal Issues

  1. 1 Whether the ABC Trust is a sham
  2. 2 Whether the husband settled his beneficial interest in C Limited and D Limited into the ABC Trust
  3. 3 Whether the wife had a beneficial interest in C Limited

Ratio Decidendi

The ABC Trust created on 3 August 2007 is not a sham; the husband settled his 50% beneficial interest in C Limited and D Limited into the trust for the benefit of the children; the wife retains a 50% beneficial interest in C Limited; the 2014 Trust Deed is a sham and of no legal effect; section 37 Matrimonial Causes Act 1973 is not engaged as the trust was not created to defeat the wife's claims.

Court Disposition

Declaratory relief granted; ABC Trust not a sham; wife retains 50% beneficial interest in C Limited; 2014 Trust Deed declared a sham; section 37 application dismissed.

Orders

  • Declaration that wife owns 50% beneficial interest in C Limited
  • Declaration that ABC Trust is not a sham