Validity of Legal Separation Agreement
This case involves the enforcement of a separation agreement between a husband and wife. The husband operated a business. He brought in a considerable amount of equipment from outside the province. He did not pay the sales tax on the equipment. When he and his wife separated, a term of the separation agreement required the wife to pay half of the unpaid sales tax if the husband was eventually required to pay it. The husband was eventually required to pay $54,000.00 in unpaid sales tax. He brought this action to enforce the separation agreement and thereby recover from his wife half of the sales tax he had paid.
You will assume both parties saw a lawyer and had independent legal advice prior to executing the separation agreement.
Is there a valid contract? Should his wife have to pay?