Q&As

On an application under the Trusts of Land and Appointment of Trustees Act 1996 is the court able to 'add back' funds that have been spent by one party? If one party owns land to which another party has a claim and they sell part of the land and use the proceeds to pay off debts not relating to that land, could the amount spent on debts be added back for the purposes of the TOLATA 1996 claim?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 08/09/2016

The following Family Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • On an application under the Trusts of Land and Appointment of Trustees Act 1996 is the court able to 'add back' funds that have been spent by one party? If one party owns land to which another party has a claim and they sell part of the land and use the proceeds to pay off debts not relating to that land, could the amount spent on debts be added back for the purposes of the TOLATA 1996 claim?

On an application under the Trusts of Land and Appointment of Trustees Act 1996 is the court able to 'add back' funds that have been spent by one party? If one party owns land to which another party has a claim and they sell part of the land and use the proceeds to pay off debts not relating to that land, could the amount spent on debts be added back for the purposes of the TOLATA 1996 claim?

The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) is a wide-ranging and powerful statute which allows the court, on the application of a person legally or beneficially interested in land, to exercise the powers of the trustees of that land, ie to declare the beneficial ownership of the relevant property, and to make orders for sale.

Absent any clear declaration (such as a deed of trust), which is conclusive of the beneficial ownership of property, (Goodman v Gallant), residential property will be considered according to constructive trust principles (Stack v Dowden and Jones v Kernott).

Non-residential property will still fall to be considered based upon a resulting trust analysis. See: Laskar v Laskar. See also Practice Notes: Eligibility to apply under TOLATA 1996 and Case law relating to

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