Family & Divorce
Common Intention in Family Law
Common intention constructive trusts may arise when a couple move into a property and the property is only held in one of their names, but the non-legal owner party contributes financially to their joint home.
Constructive Trusts for Unmarried Couples
There is a presumption that ‘equity follows the law.’
In other words, it is presumed that the legal owner of a property is also the beneficial owner, meaning the non-legal owner has no beneficial interest. To prove that a non-legal owner has a beneficial interest, the non-legal owner needs to prove that there was a common intention between the couple that the legal title does not follow the beneficial interest.
Finding a Common Intention
The court will try to ascertain whether the claimant has proved that there was a common intention that they would have a beneficial ownership despite the fact they do not have legal ownership.
This can be found by express common intention, for example if it had been discussed expressly.
It can also be inferred from conduct, for example if the non-legal owner makes contributions to mortgage payments or renovating the property.
Key Elements of a Constructive Trust
There are three key elements necessary to establish a constructive trust:
- there must have been a common intention between the parties that the non-legal owner would have a particular interest in the property
- there must be evidence of express discussions giving rise to the common intention
- the joint owner claiming the share must have acted to her/his detriment by relying on the intention that they would both have a beneficial interest.
Factors Considered by the Court
The court will have to look at numerous factors to determine whether the parties intended for their beneficial interests to not follow their legal interests.
Stack v Dowden made it clear that ‘context is everything.’ It is not just financial factors that will be considered when determining the parties true intentions. The following list of factors may be considered:
- Any advice or discussions at the time of the transfer which cast light upon the parties’ intentions then;
- The purpose for which the home was acquired;
- The nature of the parties’ relationship;
- Whether the parties had children for whom they both had responsibility to provide a home;
- How the purchase was financed, both initially and subsequently;
- How the parties arranged their finances, whether separately or together or a bit of both;
- How the parties discharged the outgoings on the property and their other household expenses;
- The parties’ individual characters and personalities may also be a factor in deciding where their true intentions lay.
This list is not exhaustive. Courts are very open to considering a wide range of factors when determining if there was a common intention for the legal ownership not to follow the beneficial ownership.
Pearl Wright, Paralegal in Mullis & Peake’s Family team, said:
“If your former partner is the sole legal owner of the property you lived in together, and you thought that there was a common intention that you would have a beneficial interest, and you relied on this belief to your detriment, it may be the case that you have a beneficial interest under a constructive trust.
This is a complex area of law, our experienced solicitors are well placed to advise you on these issues. Contact our Romford office on 01708 784000 for more information.”