Beneficial entitlement: no longer doing justice?

Discusses the House of Lords ruling in Stack v Dowden on the size of each legal owner's share of the equity in the family home in the event of the relationship breakdown of an unmarried couple. Considers whether the parties intended their beneficial interests to be different to their legal interests in the property. Comments on the court's primary concern of establishing, from the parties' conduct, their intention as regards beneficial ownership. Looks at whether indirect financial contributions give rise to a beneficial interest under a constructive trust and notes the relevance of the doctrine of proprietary estoppel.

Beneficial entitlement after Stack

Reviews the approach adopted in Stack v Dowden to determination of beneficial interests in a property purchased in the joint names of cohabitees. Considers two cases which extended the Stack v Dowden approach to encompass the beneficial entitlement of family members, namely: (1) Adekunle v Ritchie on beneficial entitlement in a property jointly purchased by a mother and son, where the transfer document contained no express declaration of trust; and (2) Abbott v Abbott on the impact of a wife's indirect financial contributions in determining her beneficial entitlement in the matrimonial home.

Joint ownership and beneficial entitlement: Stack v Dowden.

Explores the issue of the share of beneficial entitlement to the family home where the legal title is jointly owned, but where there has not been an express declaration of a beneficial joint tenancy. Discusses the House of Lords judgment in Stack v Dowden which addressed this point. Explains how the judges moved the focus away from the court imposing its own sense of fairness on the parties or imputing an intention based on the circumstances to one where the concentration will be on the parties' relevant conduct. Outlines three other points of interest referred to in the judgment: (1) whether an indirect financial contribution could support a constructive trust; (2) whether proprietary estoppel and common intention constructive trusts should be assimilated; and (3) whether a mortgage liability is equivalent to a financial contribution.

Beneficial ownership and detriment

Considers the factors which contribute to a court finding that a cohabitee has a beneficial interest in property, in particular the detriment which is required to establish a constructive trust, with reference to the Chancery Division decision in Levi v Levi and previous case law. Outlines the provisions on express or inferred common intention. Considers whether a loan of money from the non-owning to the owning cohabitant, made at a lower level than commercial loans, towards the purchase the property was sufficient detriment to entitle her to proceeds of sale from the property.

Resulting trusts, joint borrowers and beneficial share

Reviews case law illustrating the courts' approach to beneficial ownership of property purchased in joint name by means of a joint mortgage but without any declaration of beneficial interest, the resulting trust and joint beneficial interest presumptions. Contrast the approach adopted in cases where one party made no contribution to the mortgage payments with those where both parties made a contribution. Highlights the courts' treatment of the right to buy discount afforded tenant purchasers and property purchased as a commercial venture rather than a home.

Quantifying the beneficial interests of cohabitees

Discusses entitlements to a share of the sale proceeds of the family home where partners are cohabiting but not married and the property is registered in the name of one person only. Explains the obligation to establish that a cohabitee has an equitable interest in the property under the principles of constructive or resulting trusts. Considers how the court is able to quantify the respective shares, both before and after Oxley v Hiscock. [From the Legal Journals Index]