When can a Third Party Claim Matrimonial Assets
In a traditional relationship a Husband and Wife or 2 persons may co-own their home.  If that relationship breaks down, if they are married then the rules on Divorce sort out what percentage of the property each of them should have.  If they are not married or in a Civil Partnership, then the Law of Trusts will identify what proportion of the property each person owns. 

However, third parties can intervene in those proceedings even though their name may not be on the Title Deeds of the property. 

That person, or institution can be included as a Third Party to the Court proceedings which inevitably makes the whole process much more complex and an awfully lot more expensive.

Possible Third parties can be:-

1.    A Trustee in Bankruptcy that takes the place of one of the parties and a previous article deals with this in a little more detail.

2.    Other adult members who live in the property.  If a person has been living in a house which they do not legally own but making substantial capital contributions towards it then they may be able to claim a share of the equity.  It is for this reason that if a bank or building society are lending on a house they will require every adult person living in the property to sign an acknowledgement that the bank or building society have first claim over the equity before anyone else.  Where, however, a couple have either an adult child living in the property or an elderly parent who has contributed capital to the property then that person has a claim.  Similarly if a matrimonial home has subsequently become occupied by one of the parties to the marriage and their new partner and that partner has (perhaps unwisely) made a substantial capital contribution to the property that new partner could claim a share.

3.    A child could make a claim under Schedule 1 of the Children’s Act to a share of the equity in the family home that is the subject of a dispute between the mother and father who are the co-owners.  Sometimes that can be quite a useful devisce for one parent who wants to stay in the home with the child but cannot succeed in claiming the whole of the house on their own merits make a claim on behalf of the Child.  This claim only usually lasts until the child is 18 years unless the parents are exceptionally wealthy.

4.    A business partner.  If a matrimonial home includes business premises, for example a corner shop or an office and there are other persons involved in that business they may be able to claim.

The golden rule for all ownership of property and occupation rights of property is to get it all agreed and documented up front and reviewed at regular intervals if circumstances are changing.  If there is an expressed Declaration of Trust between parties who could have a claim against the property that has been properly drawn up and witnessed by all concerned then a Court would have great difficulty in overturning that express Declaration.

These proceedings are horrendously expensive and it can be sometime very unfair where a third party probably has a quite legitimate claim but the cost of pursuing that claim in order to get their money back are prohibited.

If these or any other issues relating to family breakdown are problems for you please contact us on 01423 858582 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 
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