What is TOLATA and what are your rights?

What is TOLATA?
The Trusts of Land and Appointment of Trustees Act 1996 (commonly referred to as "TOLATA") governs the relationship between landowners and those occupying the land.
How does TOLATA affect cohabiting couples?
TOLATA focuses on trusts of land, meaning the legal owner (trustee) of a property may differ from the person who benefits from it (the beneficiary). In the context of cohabiting couples, one partner may own a share of the family home without being a legal owner, or both may be legal owners, but their shares may not be equal. If a couple cannot agree on property matters after separation, they can apply to the Court under TOLATA. The Court can then decide who owns a share of the property, the size of those shares, who can live there, and if or when the property should be sold.
How does TOLATA function?
The Court starts by examining what the parties intended when the trust was created. Often, there isn’t a clear agreement between the cohabitees, so the Court must infer their intentions based on their actions. Each case is unique and depends on its own circumstances. The Court will consider various factors, such as discussions before purchasing the property, the reason for buying it, whether it was bought in one or both names, if the couple had children, and how they managed their finances.
How does the Court treat the family home differently in a divorce case compared to a TOLATA case?
In a TOLATA case, the Court looks at how the parties intended to own the property, focusing on the past. In divorce proceedings, the Court (under the Matrimonial Causes Act 1973) considers future needs and aims to divide the property fairly. These differing approaches can lead to significantly different outcomes.
Are there other differences between TOLATA claims and divorce cases?
Yes, TOLATA claims and divorce litigation follow different court rules. This distinction is particularly important regarding costs. In a TOLATA claim, the successful party might recover 60-70% of their legal costs, whereas in family proceedings, each party typically pays their own costs (with some exceptions). Therefore, anyone pursuing a TOLATA claim should consider the potential cost liability before proceeding to trial.
Does TOLATA apply to married couples?
Although the family courts typically rely on matrimonial law when dealing with property disputes in divorce cases, it is possible for a spouse to use TOLATA to claim a share of the family home that they might not otherwise be entitled to under matrimonial legislation.
What should you do?
It’s best to address these issues before purchasing a property by ensuring your intentions are clearly recorded. If you’re facing a property dispute or need advice on your rights under TOLATA, contact us for a consultation. We can guide you on whether a Court application is a suitable strategy for your situation. (not legal advice)
For comprehensive legal advice, please book via the website or via
- sh@stephanieheijdra.com
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