Vaughan v Vaughan

Vaughan v Vaughan

The judge erred by giving priority to the claims of the second wife and by attributing half of the husband's pension to her, thereby underestimating the husband's income and wrongly concluding that the wife could adjust without undue hardship to the termination of periodical payments. The correct approach is to recognise the husband's continuing obligation, capitalise it at £215,000, and order payment to the wife.

Parties
Appellant: Philippa Mary Vaughan; Respondent: David Arthur John Vaughan
Jurisdiction
England and Wales
Judgment Date
31 March 2010
Procedural Posture
Family Law Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Periodical Payments, Capitalisation of Maintenance, Obligations to Former Spouse, Second Marriage Claims, Amortisation of Capital, Maintenance Variation
Family Law Periodical Payments Capitalisation of Maintenance Obligations to Former Spouse Second Marriage Claims Amortisation of Capital Maintenance Variation

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Parties

Philippa Mary Vaughan

Appellant

David Arthur John Vaughan

Respondent

Procedural Posture

Family Law Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the judge erred in terminating periodical payments to the first wife without capitalisation
  2. 2 Proper treatment of hypothetical claims of a second wife in assessing obligations to a first wife
  3. 3 Appropriateness of amortising inherited capital for maintenance

Ratio Decidendi

The judge erred by giving priority to the claims of the second wife and by attributing half of the husband's pension to her, thereby underestimating the husband's income and wrongly concluding that the wife could adjust without undue hardship to the termination of periodical payments. The correct approach is to recognise the husband's continuing obligation, capitalise it at £215,000, and order payment to the wife.

Court Disposition

Appeal allowed

Orders

  • Husband to pay wife a lump sum of £215,000 on or before 21 July 2010
  • Until payment, interim periodical payments at £14,000 per annum from 3 November 2009