A declaration of trust is a document which records ownership shares in a property and contains details of how the proceeds will be divided if the property is sold in the future. It can reflect the contributions made to the initial purchase of the property, payment of the mortgage, and other expenses such as renovation costs. Without an express declaration of trust, a property is usually held in equal shares.
The declaration of trust is executed as a deed and will often be binding on an unmarried couple, except for in very particular circumstances (which is not relevant here). When a party subsequently marry, the declaration of trust signed pre-marriage is not treated in quite the same way as it would be for unmarried couples. Upon divorce, the declaration of trust is not legally binding in the way it would have been had the parties not married. The family court is not bound by the terms of the declaration of trust and the terms agreed can be entirely disregarded by the court when they make decisions about how the matrimonial assets are to be split. While it may have evidential value, as the declaration relates to a matrimonial home, it will have limited impact. In other words, the court can determine how the property is shared, including equal sharing of that property, or even transfer the property outright to one party to meet their needs.
The family court can depart from any existing agreement entered into before marriage if the parties’ needs mean that they are justified to do so. Further, a declaration of trust is not the same as a pre-nuptial agreement which is entered into with the intent of marriage and therefore is given more consideration.
If you need advice about declarations of trust or your rights upon marriage or separation, contact our team today on 0161 696 6193 we’re here to help.
Comments