Question 1 (80 marks)
Sally and Mattmet in 2000 whilst working together as teachers at the same school. They started dating and in 2005 they both decided that the time was right to purchase a family home. The house cost £150,000 and Matt provided the entire purchase price. Sally agreed to this because Matt told Sally that due to the fact that he had experienced financial difficulties in the past, his poor credit rating would be associated with Sally, adversely affecting her financial prospects.
Matt was stated in the transfer deed to be the sole purchaser and was registered at the Land Registry as the sole proprietor of the house. No restrictions were placed on the Register.
From the day they moved into the house together, Matt paid all the bills and expenses, the majority of which he paid by direct debit from his account. Sally continued to work full-time until the birth of their twin sons in 2010.
Following the birth of their twins, Matt and Sally decided to add an extension to the house at a cost of £50,000. Sally used money that she had inherited from her late grandmother to pay for the extension.
By 2015, Matt and Sally’s relationship had unfortunately deteriorated. Sally eventually moved out of the house with their twin sons and went to live with her parents. Matt and Sally never married.
Recently, Matt completed the sale of the house to his close friend and financial advisor, Gary, for £300,000, which was less than its market value.
Matt instructed his solicitors to send £50,000 to Sally to reimburse her for the money she had paid for the extension. Matt received £250,000 which he put into his current account. He spent £20,000 on a car which he gave to his new girlfriend, Siobhan. He intends to use £30,000 to settle his overdraft on another bank account following his other overspending on Siobhan, including a luxury world cruise.
Sally seeks advice as to her legal position with regards to the division of the family home.
Fully and critically explain the relevant law and advise Sally if she can claim more than £50,000 out of the proceeds of sale of the house. On the assumption that she can claim more, explain how this amount will be quantified, how and from whom she can recover the additional money and what action she can take to protect any claim.
Question 2 (20 marks)
With regard to the division of real property when unmarried cohabiting couples separate, explain and critically evaluate the proposals for reform put forward by the Law Commission in its Consultation Paper, Cohabitation: The Financial Consequences of Relationship Breakdown Law Com No. 307.
Is there a specific focus to your assignment?
The assignment is divided by two questions. First one holds a greater weighting of marks, so most of the focus should be on it since it is 80%. The second one is holding 20%. This module is Trust and Trustee and divided into 4 topics in relation to the course. Most of the focus will be about implied trust and trust of family home. Consider which type of trust does this fall under. If it is constructive trust for example mention how does it arise and the two categories agreement and conduct and which type this question falls under. Talk briefly about proprietary estoppel and whether it falls here, if not state why briefly.
Mention issues of ownership and other issues such as how the money will be provided S14 TLATA.
If you follow the module and lecture outline you will know how to answer these question using those topics. Please avoid answering the question with any other topics not included in the files.
Mention the issue that Matt became a trustee after the house is sold even though he does not know. Mention trustee’s duties and liabilites and any defences if you found these issues arising in the question.
Spot if there’s any liability of strangers in the question and how does that apply in the question using the files provided.
Look at the debate and issues regarding unmarried couples. Cases like Stack V Dawen
Question 1 (80 marks)