The recent case GH v H [2024] EWHC 2869 (Fam) highlights the enforcement of financial remedies via charging orders in family proceedings. Here, the High Court made a final charging order on a husband’s property to enforce unpaid financial orders owed to his ex-wife and child. This case underlines a significant enforcement route—charging orders—which allows a party to secure a financial remedy against a debtor’s property, providing creditors with a lien on that property.
Key Issues and Legal Points
- Unpaid Financial Orders: In GH v H, the husband owed substantial sums following a financial remedy order and failed to make payments despite multiple court orders. After unsuccessful attempts at securing compliance, the court granted a charging order, allowing the wife to secure her owed funds directly against the husband’s assets.
- Charging Orders Explained: Charging orders are typically used to secure unpaid sums against a debtor’s real property, like a home. This measure enforces payment by ensuring that, if the property is sold, the proceeds satisfy the debt. In family law, charging orders can also help secure future payments due under financial orders, benefiting the party entitled to the funds. Charging orders thus serve as a deterrent for debtors who might otherwise evade payment.
- Children as Beneficiaries of Orders: Notably, in GH v H, some unpaid sums were due directly to the parties’ child. The court’s interpretation allowed these sums to be included in the charging order, affirming that sums due to third-party beneficiaries, such as children, can still be secured.
- Interest on Unpaid Periodical Payments: The judgment clarified that interest accrues on unpaid periodic payments, such as maintenance, when ordered in the High Court. The interest, accruing at 8% per annum, reinforces the financial burden of non-compliance and incentivises timely payment.
- Cost Implications and Fixed Costs: The case raises essential questions about costs in enforcement applications. Family law proceedings traditionally follow a fixed-cost regime, capping fees for enforcement applications. However, given the repeated attempts and non-cooperation of the husband in GH v H, the court exercised its discretion to order higher costs, a reminder that deliberate non-compliance may incur increased financial penalties.
Key Highlights for Practitioners
GH v H offers crucial insights into enforcing family law orders through charging orders, emphasising that courts will utilise every available enforcement method to secure compliance. Practitioners should note the court’s readiness to enforce orders robustly, especially for clients facing significant arrears in financial remedies, and the importance of considering charging orders early in complex cases.
Practical Implications
Charging orders provide a viable option for practitioners when dealing with non-compliant parties. As illustrated in GH v H, the court’s discretionary powers, particularly regarding interest and cost orders, can be substantial. For clients, this serves as both a caution and assurance—non-compliance with financial orders incurs serious consequences, while compliance is rewarded with court-backed enforcement mechanisms to ensure fairness and security in family financial matters.
