Undue Influence, Economic Abuse, and the Supreme Court’s Wake-Up Call: Waller-Edwards v One Savings Bank Plc
The Supreme Court’s decision in Waller-Edwards v One Savings Bank Plc brings renewed focus to the devastating financial consequences of undue influence in intimate relationships, a form of economic abuse that remains dangerously hidden behind closed doors.
Waller-Edwards entered a relationship at a vulnerable time in her life, only to emerge financially devastated. Initially a homeowner with substantial savings and a stable pension, she was left with a mortgaged property she couldn’t live in, no savings, and no income to service the debt. The cause? The undue influence of her partner, who used a significant portion of a jointly secured loan for his own benefit, including to pay his ex-wife, before disappearing.
The Supreme Court recognised that lenders should be “put on inquiry” where a loan between cohabiting partners includes even a modest benefit solely to one party. This judgment extends vital protection in ‘hybrid’ financial arrangements, where undue influence may otherwise go unchecked.
This case also highlights the broader issue of economic abuse, now legally recognised under the Domestic Abuse Act 2021. Defined as behaviour that significantly affects someone’s ability to acquire, use, or maintain financial resources, economic abuse is a key element of coercive or controlling behaviour, now prosecutable even after a relationship ends.
Yet, family courts often fall short in recognising economic abuse during financial proceedings. While recent judgments offer glimmers of progress, current thresholds remain high, leaving many victims without redress.
To protect vulnerable individuals, reforms are essential ensuring financial remedy proceedings account for the real-world impact of economic abuse. The Supreme Court’s ruling is a step forward.
For clients navigating the aftermath of financially abusive relationships, Waller-Edwards is a legal milestone. The judgment reinforces that clients who have been coerced into disadvantageous financial arrangements by partners, often without real understanding or consent, may now have stronger grounds to challenge those transactions.
Our family law solicitors can provide guidance and support in navigating the complexities of Family Law.
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please contact our team of solicitors.
Zubair Dharamsi Gowsigan Gnanakumaran Maisa Riazi
Partner Solicitor Legal Assistant
zd@roselegal.co.uk gg@roselegal.co.uk mr@roselegal.co.uk
