Q&As

The parties are joint tenants in relation to the former matrimonial home. By agreement, they remortgaged the property to release equity. On the breakdown of the marriage, one spouse asked the other spouse to repay sums from the equity release, which they refused to do. Where a sum has been withdrawn from the marital joint assets and spent on a mutually agreed venture, what obligation does a spouse have to repay that sum to the other spouse should the marriage end?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 16/03/2020

The following Family Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • The parties are joint tenants in relation to the former matrimonial home. By agreement, they remortgaged the property to release equity. On the breakdown of the marriage, one spouse asked the other spouse to repay sums from the equity release, which they refused to do. Where a sum has been withdrawn from the marital joint assets and spent on a mutually agreed venture, what obligation does a spouse have to repay that sum to the other spouse should the marriage end?

While spouses are able to enter into contractual and debt arrangements as between themselves, on the coming to the end of a marriage, the financial position will be governed by the Matrimonial Causes Act 1973 (MCA 1973). Although the court can take into consideration agreements reached between the parties in this respect, that will only be one factor in all of the circumstances of the case.

On or after a petition for a decree of divorce (or judicial separation or nullity), either spouse can make an application to the Family Court in Form A for financial remedies. This begins the process of the division of the assets. It is often the case that, for example, monies have been withdrawn from the family home to fund a business of one or other of the parties or as a joint venture. If that venture fails and the monies are lost,

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