BackLatest News and Articles - October 2010
Joint property owners beware!
The Daily Mail recently run a headline “Mother must give up half her house to lover who left 17 years ago”. This was their reporting on the recent case of Kernott v Jones.
This case follows on from the leading case of Stack v Dowden where it was established that an unmarried couple who had bought a property in joint names, with each having contributed financially to the purchase will hold the property in 50/50 shares unless there was evidence of a clear intention to the contrary.
Kernott v Jones emphasizes the fact that there is an extremely heavy burden on any party to show why there should not be a 50/50 spilt where both parties have jointly contributed to the cost. In Kernott V Jones an unmarried couple bought a property in joint names and lived there together with their children. They jointly contributed to the cost, and when the relationship ended the man moved out and bought a property in his own name. The women then assumed sole responsibility for the joint property and it was not until some 12 years later that the man sought to realize his 50% interest in the property.
The Court of Appeal found that a 50/50 split should be made. It was not open to the Court to impose a “fair” solution on the parties. Moreover it was not possible to infer an intention from their conduct after their separation that the 50/50 arrangement should be varied. The burden on a party seeking to rebut the 50/50 presumption is a strong one.
Hence the Daily Mail thought it was clearly unfair that Ms Jones should only receive 50% of the equity in the property given her circumstances and given that she maintained the property on her own after the separation of the parties. That is a clear example why Solicitors must take clear instructions from parties when purchasing a property as an unmarried couple as to what would happen if the parties were to split up. They have to realize that the base position is 50/50 split and if this is not acceptable then the property must be registered as tenants in common with a supporting Trust Deed setting out the relevant proportions.
Bird & Lovibond are happy to advise on these matters.