Financial remedy orders, life insurance and the family court
Ensuring a fair settlement for the child when a couple separate or divorce.
In a recent case: S v C [2020] EWHC 2127 (Fam) an application was made by the former wife for a financial remedy order.
The issue was around whether the court should exercise its jurisdiction under section 23 of the Matrimonial Causes Act 1973 to impose conditions on the release to the parties of a frozen fund of around £3.74 million. This fund had been derived from the settlement of a medical negligence claim, on behalf of their child.
In the Judge’s view, there had to be a formal mechanism for ensuring the child’s continued benefit from the fund.
In order to release these funds, the Judge stated each parent would be required to purchase life insurance, with the daughter as beneficiary.