Selective enforcement of a $402,000 New Zealand family trust loan is being used by estranged spouse Robyn Belasco as leverage to force him into submission over their UK relationship property dispute, husband Gari alleged in the High Court.
NZ-based Pomeroy Family Trust lent the Belascos $402,000 in 2018; money used to buy their UK family home. Robyn Belasco’s mother is one of two trustees.
This loan to Mr & Mrs Belasco is repayable on demand, with a proviso that demand would not be made prior to the death of Mrs Belasco, or separation. Some three and a half years later, the two separated.
While the loan was described as interest-free, interest at eight per cent runs from fourteen days after demand is made for repayment until payment is made. As sole adult beneficiary of the Pomeroy Family Trust, Ms Belasco gains the benefit of interest accruing on delayed repayment. Mr Belasco is not a beneficiary.
In the High Court, Mr Belasco complained that he is being held to ransom. Repayment of the loan requires sale of their UK home. His estranged spouse is being obstructive, by refusing to reduce the sale price and then taking the property off the market, he claims. Ms Belasco currently lives there, with their infant son.
In New Zealand, the family Trust sued both Mr and Ms Belasco getting judgment for the $402,000 debt plus interest running from January 2023. Mr Belasco admitted the debt was due, but challenged trustees’ demand that he pay the Trust’s legal costs.
Mr Belasco alleges the debt recovery action taken in New Zealand is intended to benefit his estranged spouse’s negotiating position in their UK relationship property dispute. Court action was taken for an improper purpose, he alleged.
Both her and her mother’s family trust are manipulating the situation to unfairly disadvantage him, by selectively enforcing their joint debt and its accruing interest against him personally and by burdening him with extra legal costs, he said
Associate judge Taylor said the family trust had a more cost-effective way to recover payment than by suing Mr Belasco personally. It could have secured its debt over the Belascos' UK home.
Interest for late payment continues to accrue to the ultimate benefit of Mrs Belasco while she impedes sale of the one asset available to enable repayment.
Judge Taylor required the Trust pay its own New Zealand legal costs; Mr Belasco is not required to contribute.
Pomeroy Family Trust v. Belasco – High Court (20.09.23)
23.161