ANCILLARY RELIEF: Vaughan v Vaughan [2010] EWCA Civ 349

07 MAY 2010

(Court of Appeal; Wilson, Hughes and Patten LJJ; 31 March 2010)

The husband applied to terminate periodical payments he was ordered to pay his ex-wife in 1989.The wife cross-applied for a capitalised lump sum.  The wife had inherited capital since separation and was in a position to produce her own income without undue hardship. The High Court judge allowed the husband's application, attributing half of husband's current pension income to his second wife.

The case raised issues about the proper treatment of hypothetical claims of the second wife in assessment of any obligation on husband to continue to make periodical payments to a first wife.

Held that no priority to be given to claims of second wife. The wife was awarded a lump sum of £215,000 in lieu of periodical payments to provide an income of £46,000 per annum with any shortfall to be made up from her capital. Application of Pearce v Pearce principles. Consideration of circumstances in which a spouse to contribute capital to meet maintenance needs.

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