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Has anyone known of a Deed of Trust to be overturned due to marriage?

8 replies

TrustMyArse · 24/08/2023 17:40

Just wondering if the courts tend to uphold a declaration of trust (protecting large house deposit) during divorce. It was made before marriage but only a year before and now the matrimonial house is being sold.

The parties can't agree on the split of the equity now and one is refusing to communicate.

Just looking for outside experiences as my friend is going through the mill trying to protect her money and we've no prior experience. Thanks

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prettygreenteacup · 24/08/2023 18:09

By nature, a deed of trust between unmarried people living together becomes void once you marry. The whole point of it is to protect you whilst unmarried, and getting married is a legal contract that overrides that. It states it in a deed of trust that marrying makes it irrelevant. Its now a marital asset that they need to agree on a way of splitting.

TrustMyArse · 24/08/2023 19:21

Thank you, this was my concern. She didn't know to get a pre-nup and her solicitor seems to think the deed will still stand as it shows their intention. More so, the solicitor has suggested a proposal of an 80/20 split of the equity in my friends favour as well as her deposit back. He's refusing to discuss it at all

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Bromptotoo · 24/08/2023 20:47

We're in proper legal advice territory here but I don't think @prettygreenteacup is right.

If you enter into a deed to reflect/protect (say) unequal shares in the a jointly owned home there's no rational reason why that would change if you subsequently marry. We've moved on from what's ours is his.

One might perfectly reasonably enter into such an arrangement once married.

The possibility of the deed being disregarded by a court dividing assets after a marriage has ended is however a thing...

TheaBrandt · 24/08/2023 20:57

My understanding is once married everything is a “marital asset” irrespective of the legal ownership of it. Haven’t done divorce law for years caveat.

ShadowPuppets · 24/08/2023 20:59

We had a a DoDoT before we got married based on unequal deposit contributions, we redid our wills recently and I asked the question and was told it was void now. Admittedly it’s been 8 years since the deed and 3 since marriage, but that was what we were told.

smartiesneberhadtheanswer · 24/08/2023 21:07

TheaBrandt · 24/08/2023 20:57

My understanding is once married everything is a “marital asset” irrespective of the legal ownership of it. Haven’t done divorce law for years caveat.

I don't believe that's correct, you can have a deed of trust post marriage to protect shares in a house.

ShadowPuppets · 24/08/2023 21:20

smartiesneberhadtheanswer · 24/08/2023 21:07

I don't believe that's correct, you can have a deed of trust post marriage to protect shares in a house.

I think though it’s about intent, if you do it post marriage then it’s clear you intended for it to remain in effect, if done pre marriage it’s harder to show intent.

TrustMyArse · 24/08/2023 21:23

"One might perfectly reasonably enter into such an arrangement once married."

That would be a post nup wouldn't it?

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