Husband Gets Payout After Wife Refuses to Settle

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Despite the sums of money involved in this case, it is not a story about a famous actor, sports star or wealthy statesperson. It is about an ordinary English couple whose relationship breakup has just cost the woman £200,000.

And although it didn’t happen in NSW, it sends a warning that greed can have serious legal consequences.

The story goes like this. Once upon a time, advertising executive Chloe Thomas and builder Gareth Powell fell in love. They spent lots of time together, eight years in fact, making heaps of plans for the future.

One of their most ambitious ideas was to make a small fortune from their own ‘Homes under the Hammer’- style renovation.

But then the unthinkable happened, something they never planned for – their love soured and they broke up.

Chloe tried to cut Gareth out of his share of the project, but she ended up on the wrong side of a court’s decision. Now she owes £200,000; the £50,000 Gareth sued her for and £150,000 in legal costs.

The Case

The Central London County Court heard that the couple jointly decided to buy a £315,000 home near Wandsworth Common in 2012 using Chloe’s money, and it was their intention that Gareth, who didn’t have much money, would invest ‘sweat equity’ by using his building skills to renovate the rundown flat, making it presentable and ready for sale.

At the time of purchase, the flat was ‘uninhabitable’; there was poor water pressure and no heating, and the couple suffered a freezing winter when they first moved in.

Using cash loaned to him by his parents, Gareth spent over £14,000 on materials, fixing the piping and heating. He also installed a new kitchen and turned the old bathroom into a modern ‘wet room’.

Gareth also told the court that in early 2013, Chloe’s mother, Heather, suggested the couple draw up a contract, guaranteeing him one-third of the profits if the couple ever separated. Gareth duly signed the agreement.

Then the couple split in 2014, and because the apartment was solely in Chloe’s name, Gareth was left without so much as a penny. Gareth said that shortly after the breakup, Chloe had written text messages to him promising to honour the agreement.

But Chloe later denied that any agreement existed. So Gareth decided to sue.

During her testimony, Chloe vehemently denied any part in the agreement, saying it was her mother’s idea and she was furious to discover that Gareth had signed it. Chloe said that when her mother realised the document was causing friction in the family, she tore it up.

But the Judge was not impressed with Chloe’s actions, finding in Gareth’s favour.

Chloe now has to pay an enormous bill. She has been ordered to pay Gareth almost £50,000 that he sued for, and also to pay legal costs, taking her total bill to around £200,000.

Perhaps foolishly, Chloe turned down an offer of settlement last year, which would have cost her only £35,000.

The story serves as a warning that love doesn’t always conquer all, and that greed can have consequences.

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