In Goddard Watts V Goddard Watts, Mr and Mrs Goddard-Watts agreed a financial settlement in 2010 for the wife to keep the family home and the husband to retain his business assets.
However, the wife later discovered that he had failed to disclose assets held in trusts, to which he was the principle beneficiary. Due to this, in 2016, the wife applied to have the original agreement set aside. The court did not set the agreement aside, but the wife was awarded £6million in compensation for the non-disclosure.
However, in 2018, it was again discovered that the husband had failed to disclose his full worth. He had not disclosed that there was an impending sale of his business, with the sale being worth between £25million to £75million. The wife therefore went to court to have the second award of £6million set aside.
In 2022, there was a further hearing where it was decided that consideration would only be given to the non-disclosed sale of the business, rather than considering all the assets available in the case. The wife was therefore awarded £1.1million as opposed to the £13million she was claiming.
The wife appealed this outcome and in 2023, the Court of Appeal overturned this ruling, siding with the wife. The Court of Appeal has found that it would be 'wholly unjust' to disregard the husband's fraud in failing to disclose the full extent of his worth on all occasions. It has been decided that the husband's non-disclosure is so far reaching that it required the judge to re consider "the entire financial landscape".
The Court therefore held that the husband's repeated non-disclosure on more than one occasion was severe enough to mean that the wife's entire application should be reconsidered in full, based on the husband's wealth now as opposed to his wealth in 2010 when the original agreement was reached. In financial remedy proceedings, both parties have a legal duty to provide full and frank financial disclosure. Failing to do so can have severe consequences. Our expert family solicitors are experienced in advising clients on how to approach financial disclosure and how this should be presented in the course of proceedings. You can also refer to our article which provides our top tips for preparing your financial disclosure.