Beneficial shares in a property

In Kernott v Jones [2010] EWCA Civ 578, the Court of Appeal applied the principles laid down by the House of Lords in Stack v Dowden and allowed an appeal from the High Court's decision.

In this case, an unmarried couple purchased a property as joint tenants. The relationship ended. The man moved out and purchased a house in his name, for which he was solely responsible. The woman remained in occupation of the property and was solely responsible for it. After 12 years' separation, the man severed the joint tenancy and claimed his share in the property.

The Court of Appeal held that there was no evidence to displace the presumption of equality of beneficial shares. It was not possible to infer a joint intention from the parties' conduct since their separation that their equal shares should be varied. It declared that the parties held the property as tenants in common in equal shares.

This decision provides further confirmation that the burden on the party seeking to rebut the presumption of joint beneficial interests is a heavy one. It also illustrates the importance for cohabitants of entering into an express agreement as to their beneficial shares in a property.