How are debts owed to family members dealt with in divorce proceedings?
The first question for the court to determine is whether the debts are legitimate, and this is a...
When parties are not married and live together there is always the possibility of a dispute as to their beneficial interest in the property if they separate.
George Green’s family department have extensive experience in dealing with property disputes.
Mark Vandaele, a Family Law Associate at George Green LLP, specialises in cohabitation disputes.
He says “we commonly come across clients who have separated and seek to clarify what, if any, beneficial interest they have in regards the property they have lived in. Often it is the case that the legal title is registered in the name of one party.”
Does this mean that the other party has no beneficial interest in that property?
“Not necessarily. The facts of each case will always be crucial. If the non-owning party has made a financial contribution towards the purchase price or paid for building work to be undertaken this can give rise to a potential claim.”
How do you protect yourself?
“If you are making a capital contribution then it is always a good idea to retain documentary evidence of the contribution and for it be recorded in writing. Ideally a deed of trust should be obtained; specifying what the contribution was and what beneficial share this is intended to afford the non-owning party.
More often than not client’s come to us with no such documentation or where they have not made a financial contribution.”
I have no evidence of my financial contribution. Is that the end of the road?
“Not necessarily, the court can look at the common intention of the parties and examine how they have treated the property in the context of their relationship. These types of cases are very fact specific and require a detailed analysis from the outset."
Is an agreement between us after separation binding?
"Potentially. In the recent case of Ely v Robson [2016] EWCA Civ 774 the parties had an informal discussion at home regarding their potential beneficial interests after they separated. They reached an agreement without solicitors being present.
Mr Robson, who owned the property in his sole name, agreed that Ms Ely could occupy the property whilst her Aunt and elderly mother were in occupation.
Despite not being a formal written agreement the Court Of Appeal held the parties to this agreement on the basis it gave rise to a constructive trust. They prevented Ms Ely from backing out of the agreement and held that the property was held on trust 80/20 in Mr Robson’s favour.
This judgment sends out a warning to be very careful when discussing property claims without solicitors being present. The best advice is to obtain legal advice prior to any meeting and reaching an agreement. If issues remain in dispute then these should be clearly outlined. Any meeting should be followed up in writing recording what has been agreed and what is in dispute, ideally with the assistance of a solicitor.”
Mark Vandaele is a member of Resolution- an organization of professionals who are committed to the constructive resolution of family disputes. As a result of his work and achievements on recent cases, he has been accredited by Resolution as an accredited specialist in dealing with high value and complex financial cases.
He specialises in all areas of Family law including Divorce, cohabitation and children issues. He is an accredited member of the Law Society’s Family law panel. He has also been granted the HSSF mark (help and support for separated families) and featured in the Sunday Times as one of the UK's top rated solicitors based on independent reviews provided by current and past clients.
Mark offers free initial telephone case assessments. If you wish to contact him please call 01902 796930 or email mvandaele@georgegreen.co.uk