Stack v Dowden [2007] 2 AC 432 (HL)

Facts

  • Ms. Stack and Mr. Dowden cohabited for over 25 years and jointly purchased a property.
  • Upon the breakdown of their relationship, a dispute arose over the division of the jointly owned property.
  • The legal title of the property was held in both names, giving rise to the presumption of joint ownership.
  • Ms. Stack made greater financial contributions, including a larger share of the deposit and the majority of mortgage payments, as well as substantial improvements to the property.
  • Ms. Stack also assumed primary responsibility for homemaking and childcare during the relationship.
  • Mr. Dowden's financial contributions were comparatively modest.
  • The case was decided by the House of Lords, focusing on the appropriate method for determining beneficial ownership in such circumstances.

Issues

  1. Whether the presumption of equal ownership arising from joint legal title could be displaced by evidence of different common intentions.
  2. To what extent both financial and non-financial contributions should be considered in determining each party’s beneficial share.
  3. How the court should infer or determine the parties' actual intentions regarding ownership when direct evidence is unavailable.

Decision

  • The House of Lords held that the starting point for determining beneficial ownership is the legal title, which presumes equality, but this presumption can be displaced by evidence of contrary common intention.
  • The court must consider both financial and non-financial contributions, including homemaking and childcare, to infer the parties’ intentions.
  • On the facts, the court found that Ms. Stack was entitled to a 65% share and Mr. Dowden to a 35% share of the property based on their respective contributions and intentions.
  • The decision marked a departure from reliance solely on financial contributions and the legal title, emphasizing a more detailed factual analysis.

Legal Principles

  • The presumption of equal ownership for jointly owned property can be rebutted by evidence showing a different common intention.
  • Courts should consider the whole course of conduct between the parties, including both financial and non-financial contributions, in assessing beneficial interests.
  • Common intention may be inferred from conduct and contributions, not merely from express agreements or the legal title itself.
  • The contributory approach offers a framework that accommodates a more equitable and case-specific division of property shares.

Conclusion

Stack v Dowden [2007] 2 AC 432 established that, for cohabiting couples, the division of jointly owned property should reflect the parties' actual intentions as inferred from the entirety of their financial and non-financial contributions, replacing the strict presumption of equality with a flexible and equitable approach.

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