Appeal Court grants cohabite a share of house

A woman has won her appeal that she should be granted a half share in the house in which she lived with her former partner.

The couple were not married but had bought a house together with a mortgage in their joint names. Her partner paid the deposit and then the mortgage instalments. There was no declaration of trust outlining their intentions as to whether the property was to be owned jointly or shared in some other way reflecting their particular circumstances.

When the couple separated, there was a disagreement about ownership of the property. The woman's partner submitted that although he had agreed to the property being in joint names, he had only intended that she should inherit it after his death.

The judge ruled that in the absence of a declaration of trust, the property should be shared in direct proportion to the contribution each had made to the purchase price. The woman had not made any contributions so her partner should be granted ownership.

However, that ruling has now been overturned by the Court of Appeal. The Appeal Court judges said that in the absence of any legal document such as a declaration of trust it was necessary to try to ascertain what each party's intentions had been by the way they had bought the property and their general conduct in relation to it. For example, the fact that each had made a will leaving their interest in the property to the other suggested that they had each intended the other to have a share in the ownership.

The court allowed the woman's appeal and granted her a half share in the property.

It is not uncommon for disputes to arise when couples separate. Much of the confusion and emotional upset could be avoided if they drew up legal documents such as declarations of trust or living together agreements which clearly set out how assets should be divided should the relationship end.