Finding out that your partner has been having an affair can be completely devastating and often results in the relationship breaking down. Invariably, by their nature, affairs are carried out in secret. But what impact can they have on financial matters if they come to light?

Generally in divorce proceedings, an affair is not conduct which is taken into consideration when looking at the division of assets or the financial provision to be made. However, a recent case shows that there are circumstances where dishonesty might have far-reaching consequences.

In that case, the husband persuaded the wife to re-mortgage the family home so that he could give security for his credit card debts. He promised on their children's lives that he would pay the increased monthly mortgage, and the wife duly signed the documents. What the husband omitted to tell the wife was that, at the time he was asking her to agree to this financial arrangement, he was having an affair with another woman.

The wife eventually found out about the relationship, and this led to their divorce. The husband was declared bankrupt, and the wife acquired his interest in their home from the Trustee in Bankruptcy for a nominal sum. Unfortunately, the wife was not then able to keep up with the increased mortgage payments, and the lender sought possession of the house.

The wife opposed this on the basis that, in concealing the affair, the husband had breached his duty of fairness and effectively exercised undue influence on her. She had given her consent, assuming the husband was as committed to the marriage as she was. The Court took the view that, had she taken legal advice about signing up to the greater mortgage, her legal adviser might have warned her against doing so if the affair had been known about. The wife was therefore successful in defending the possession proceedings.

The implications seemed to be that, failure to be honest with your spouse about your behaviour at a time when you are seeking their support in relation to financial transactions, such as re-mortgaging the house, using the family home as collateral in a business venture, or encouraging them to be party to a loan, or indeed taking a loan in their own name to assist, could see the Courts treating this behaviour as undue influence. The burden of that debt could then fall squarely on your shoulders should the marriage fail and your affair at the relevant time be discovered.

So, beware the consequences of leading a double life. The impact of dishonesty could be far greater than the verbal 'bashing' that may occur on discovery of the affair and might hit you in your purse or wallet with real force.

If you require further advice about the financial consequences of marriage breakdown, please contact Justine Flack, Family Lawyer on 0116 247 3564 or

To find out more about any family legal matter, call Jane Cowley on 0116 247 3596 or email: justine.flack@howespercival.com.