Can a husband who agreed to a settlement with his wife in order to avoid income tax problems after the fact discover that the agreement does not protect him against income tax issues?

Ontario, Canada


The following excerpt is from Ford v. Ford, 2010 ONSC 2696 (CanLII):

There is no mutual mistake at play here. The husband and his lawyer agreed to the settlement. At best, this case shows that after the fact the husband discovered that the agreement made did not protect him against income tax problems and that he could have taken some advantage for the deductibility of a personal injury award and perhaps the sale of a home he had owned prior to marriage in calculating his net family property. This is a case of unilateral mistake. The wife and her counsel had no reason to think that the husband was settling his obligations by failing to negotiate matters to his advantage. Over months, the husband had forced three separate negotiations. As in Sckerer v. Palette, supra, I refuse to stop the enforcement of the settlement at bar as the settlement not only was agreed to by the lawyer acting properly on behalf of the Respondent it was anticipated that it would be enforced.

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