Declaration of trust

by **hammerz** on Wed Feb 09, 2011 11:15 am

Hi, not tax question but hopefully someone may have advice. Purchased house outright with my partner (unmarried) in 2004 75/25% contribution in my favour, deeds as joint tenants. We are now separating due to her infidelity and there is no declaration of trust in place, and ex is now stalling on agreeing to such. I can substantiate contribution to purchase. Question is how difficult/likely is/will it be to recoup my percentage of investment. Both currently living in property, partner has 14 yearold Son from previous relationship living here i have 4 previous children not living here.

Thank you in advance

Cam

by **Lee Young** on Wed Feb 09, 2011 12:05 pm

If you own the property as joint tenants this can only be 50/50. You need to take advice from a solicitor who speciailises in realtionship breakdowns.

by **section 44** on Tue Feb 15, 2011 4:05 pm

Lee Young wrote:If you own the property as joint tenants this can only be 50/50

No, this implies that each owns 50%. If you own property as joint tenants this means that each own the whole (notwithstanding that for IHT and CGT purposes you may be regarded as owning 50% each).

hammerz wrote:75/25% contribution

You'd be looking to show that there is a constructive trust. What evidence is there to support this? What about indirect contributions (i.e. were you able to contribute 75% because she perhaps met other expenses that you would otherwise have had to pay?)

by **Lee Young** on Tue Feb 15, 2011 6:14 pm

Section 44 is right though my point is that once you sever the joint tenancy (on realtionship breakdown for example, the situation here) the ownership proportions can ponly ever be 50/50 in the absence of evidence to the contrary....the very point that section 44 makes.

by **maths** on Tue Feb 15, 2011 7:30 pm

When you refer to "joint tenants" do you mean that or is it possible that your solicitor (he would know) structured ownership as tenants in common (75/25) because of the respective purchase price contributions at that time?

If the former, typically, the starting point for the courts now re the family home is an equal split subject to strong contrary evidence.

by **section 44** on Mon Feb 21, 2011 7:16 pm

maths wrote:is it possible that your solicitor (he would know) structured ownership as tenants in common (75/25) because of the respective purchase price contributions at that time

Good point. It may be a little cavalier for a solicitor not to at least suggest this when dealing with co-owners that are neither married nor in a civil partnership.