S v C
The court determined that a formal trust structure was not appropriate due to disproportionate expense, tax risks, and potential for ongoing conflict. Instead, the court ordered ring-fencing of £900,000 from each party for housing, a secured maintenance fund of £150,000 from C, and charges over properties for A's benefit, with life assurance policies as additional security. Ownership of funds remains with parents, subject to these protections, balancing security for A with autonomy for C and proportionality under Article 8 ECHR.
- Parties
- Applicant: S; Respondent: C
- Jurisdiction
- England and Wales
- Judgment Date
- 05 August 2020
- Procedural Posture
- Financial Remedy Application / Final Judgment
- Outcome
- Application granted in part; court orders ring-fencing of funds, secured maintenance, and property charges for child's benefit, but rejects formal trust structure.
- Legal Topics
- Financial Remedy, Child Maintenance, Trusts, Secured Maintenance, Disclosure, Beneficial Ownership, Disability Trust, Inheritance Tax, Property Rights
Case Brief
Summary, issues, holding and outcome
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Parties
S
Applicant
C
Respondent
Procedural Posture
Financial Remedy Application / Final Judgment
Legal Issues
- 1 Extent of court's jurisdiction under section 23 Matrimonial Causes Act 1973 regarding frozen funds
- 2 Appropriate mechanism for securing funds for child's benefit
- 3 Disclosure and beneficial ownership of trust assets
Ratio Decidendi
The court determined that a formal trust structure was not appropriate due to disproportionate expense, tax risks, and potential for ongoing conflict. Instead, the court ordered ring-fencing of £900,000 from each party for housing, a secured maintenance fund of £150,000 from C, and charges over properties for A's benefit, with life assurance policies as additional security. Ownership of funds remains with parents, subject to these protections, balancing security for A with autonomy for C and proportionality under Article 8 ECHR.
Court Disposition
Application granted in part; court orders ring-fencing of funds, secured maintenance, and property charges for child's benefit, but rejects formal trust structure.
Orders
- Child maintenance for A at £2,000 per month, index-linked annually
- Secured maintenance fund of £150,000 from C's share
Full Case Text
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