Key Facts
- •DDR (Wife) and BDR (Husband) divorced after a 13-year marriage.
- •The Husband was declared bankrupt in 2019.
- •The marital home, solely owned by the Husband, is the main asset.
- •The Wife claimed a 50% beneficial interest in the family home.
- •The Husband disputed the Wife's claim, asserting sole beneficial ownership.
- •The case involved insolvency, trusts of land, and financial remedies law.
- •The Wife was represented pro bono; the Husband represented himself.
- •The Wife made substantial financial contributions to the mortgage payments.
Legal Principles
Family courts usually don't resolve beneficial ownership issues between divorcing spouses; financial remedies are determined within the Matrimonial Causes Act.
Fielding v Fielding [1977] 1 WLR 1146; Prazic v Prazic [2006] EWCA Civ 497
An exception arises when a third party (e.g., trustee in bankruptcy) asserts a beneficial interest.
Tsvetkov v Khayrova [2023] EWFC 130
In disputes over ownership, the court applies the same legal basis as the Chancery Division.
TL v ML [2005] EWHC 2860 (Fam)
In determining beneficial ownership, there's a presumption that equity follows the law (legal owner is also the beneficial owner). The burden of proof lies with the party contesting this.
Stack v Dowden [2007] UKHL 17
Constructive trust is the appropriate tool of analysis in most matrimonial cases regarding property ownership.
Abbott v Abbott [2007] UKPC 53
To establish a beneficial interest, a common intention (express or implied) and detrimental reliance must be shown.
Jones v Kernott [2011] UKSC 53
In financial remedy cases, the court aims for a fair outcome considering factors under s.25 of the Matrimonial Causes Act 1973.
White v White [2001] 1 AC 596; Miller; McFarlane [2006] UKHL 24
Outcomes
The Wife has a 50% beneficial interest in the family home.
The court found an implied common intention for joint ownership based on the Wife's substantial financial contributions, joint liability for the mortgage, and the Husband's manipulative behaviour in concealing information.
The family home will be sold.
To resolve the financial claims fairly, considering the Wife's need for housing and the Husband's bankruptcy.
The Wife receives £149,000 from the sale proceeds (her 50% share), plus half of any surplus.
This covers her housing needs, liabilities, and ensures a fair distribution considering the limited assets and the Husband's bankruptcy.
The Husband receives any surplus above £149,000 from the Wife’s share, split equally between them.
This accounts for the remaining equity after the Wife's needs are met. The Husband's bankruptcy means the trustee receives his 50% share.