Challenge to arbitral award and the power to require borrowing under ChA 1989, Sch 1 (LT v ZU)

Article summary

Family analysis: This case concerned a challenge to an arbitration award made on a Schedule 1 claim. The court considered the approach for reviewing an arbitral award and determining whether to convert the award into a court order, whether a party can be required to borrow money for the purposes of making a settlement of property under Schedule 1 to the Children Act 1989 (ChA 1989) and the affordability of the award and change of circumstances since the award. The court held that the arbitral award was wrong and declined to make an order on its terms. In particular, the court found that there was no power to order a settlement under ChA 1989, Sch 1, para 1(2)(d) which would require the parent to borrow money and that the award made would have been unaffordable for the father. Rhiannon Guibert, consultant at Simons Muirhead Burton LLP, considers the issues.