Re: Winter 2015 | Page 57

that “the [wife] believes that the [husband] has not provided full and frank disclosure of his financial circumstances (although this is disputed by the [husband]), but is compromising her claims in the terms set out in this consent order despite this in order to achieve finality”]. Mrs Gohil subsequently applied to set aside the Order on the ground that Mr Gohil had fraudulently failed to disclose his assets. These proceedings were delayed, largely because Mr Gohil was charged with serious moneylaundering offences and was eventually convicted and committed to prison. The Order was set aside, but Mr Gohil appealed. The Court of Appeal allowed the husband’s appeal, concluding that there was no admissible evidence to support the Judge’s conclusions on material nondisclosure and Mrs Sharland appealed to the Supreme Court. The Supreme Court has unanimously allowed Mrs Gohil’s appeal. It has found that words such as those used in the Recital have no legal effect in a financial order in divorce proceedings. The husband owed a duty to the court to make full and frank disclosure of his resources, without which the court would be disabled from discharging its duty under the law to determine a fair settlement. The evidence that had been relied on from Mr Gohil’s criminal proceedings had been obtained from sources outside the UK (which had since been held inadmissible), however, even if only the remaining admissible evidence had been relied on it would have still have been concluded that the Mr Gohil was guilty of material non-disclosure. The issues raised in the Supreme Court will have implications in many other cases, not just those involving multi-millionaires. In fact it is likely that the outcome will actually be even more important within the cases where there is barely enough to go round to meet everyone’s needs because access to concealed assets will in those circumstances make a huge difference to a families standard of living. A fair financial settlement within divorce can only be reached if it is based on the true value of the assets. Those who are not willing to be open and honest about their financial situation within a divorce also need to give consideration to any children of the family, who will no doubt be impacted by their parents being locked into a hostile legal battle. Hopefully the court decision in these appeals will send out a clear message to everyone going through a divorce that honesty is not only the best policy, but the only one which will be tolerated. By Gemma Hope 55