Stack v Dowden [2007] UKHL 17

Facts

• Stack and Dowden, an unmarried couple, jointly purchased a property, with the legal title held in both names.
• Disputes later arose regarding the shares each party held in the beneficial ownership of the property.
• There was no clear written trust agreement specifying ownership proportions.
• The parties had differing financial arrangements, including contributions toward the deposit, mortgage payments, and household expenses.

Issues

1. Whether joint legal ownership of property creates a presumption of equal beneficial ownership.
2. Whether and how this presumption can be rebutted by evidence of the parties' intentions and conduct.
3. What factors courts should consider in determining the parties' respective beneficial interests.

Decision

• The House of Lords confirmed that joint legal ownership establishes a starting presumption of equal beneficial ownership.
• This presumption can be displaced by evidence showing that the parties intended to own the property in unequal shares.
• Courts should examine all circumstances and conduct relating to the property, not just financial contributions.
• The absence of a written agreement on ownership proportions requires a broad evaluation of evidence, including discussions at purchase, the nature of the relationship, and arrangements for household finances.

Legal Principles

• The presumption of equal beneficial ownership arises from joint legal ownership but is not absolute.
• Courts must assess the parties' whole course of conduct relating to the property to identify common intention regarding ownership shares.
• Direct written trust agreements usually provide conclusive evidence of intended beneficial shares.
• Absent written agreements, factors beyond financial contributions, such as household expense arrangements and the rationale for the purchase, are relevant.
• Later cases, such as Jones v Kernott [2011] UKSC 53, refine the approach for inferring changing intentions regarding ownership.

Conclusion

The judgment in Stack v Dowden established that, while joint legal ownership presumes equal beneficial shares, this may be rebutted by considering all relevant evidence of the parties' intentions and conduct, with written agreements providing decisive clarity where available.