Man wins half share of ex-partner’s home – 17 years after separation

A man has won a half share of his former partner’s home – even though the couple separated 17 years ago and she had paid the mortgage during that period.

The couple had bought the property in 1985 in joint names and had joint beneficial interests. The woman had provided the deposit and the mortgage payments were shared.

The man moved out in 1993 when the couple separated. The woman remained in the house with their two children and made all the mortgage payments herself.

Twelve years later, the man asked for his half share of the property. The woman responded by seeking a court declaration that she owned the entire beneficial interest. The court eventually decided on a 90/10 split in her favour.

However, that ruling has been overturned by the Court of Appeal. It held that the property had been bought in joint names. That had created joint beneficial interests and the couple had not done anything to change that when they separated.

The passage of time alone was not enough to displace the man’s beneficial interest, even though the woman had paid the mortgage and covered all the maintenance costs.

If the couple had intended that his interest should diminish after separation then they should have taken steps to make that happen. They did not do so.

The court added the advice that couples buying a home, especially if they are not married, should consider what would happen to their beneficial interests if they were to separate.

Please contact us if you would like more information about the issues raised in this article.

 

July 2010

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