Stack v Dowden [2007]

Stack v Dowden [2007] UKHL 17 stands as a pivotal case in English property law, offering profound insights into the division of interests in family property post the dissolution of a cohabitation relationship. The case, heard in the House of Lords, delves into the complexities of establishing beneficial ownership and the considerations that shape such determinations.

Mr Stack and Ms Dowden cohabited for nearly 18 years, during which they had four children. In 1993, they jointly purchased a house at 114 Chatsworth Road, London. Despite both names appearing on the property's registration, they did not specify their respective shares. Ms Dowden's financial contributions were significant, providing 65% of the purchase price from the sale of her previous property, her savings, and a joint loan. Financial independence, separate accounts, and distinct investments characterised their financial arrangement.

After the relationship ended in 2002, Mr Stack sought a declaration that the property was held on trust as tenants in common, advocating for its sale. The Court of Appeal overturned the High Court's declaration of equal ownership, ordering a 65% to Ms Dowden and 35% to Mr Stack. However, Mr Stack appealed this decision to the House of Lords.

The House of Lords, in a majority decision, held that Ms. Dowden was entitled to a greater share than half the equity – specifically, a 65% interest. The ruling emphasised the departure from the precedent set by Lloyds Bank plc v Rosse [1990]t. Notably, indirect contributions, such as improvements and the pooling of resources, were recognised as significant factors in determining beneficial ownership.

Baroness Hale played a pivotal role, emphasising that the onus lies on the party seeking to demonstrate a divergence between legal and beneficial ownership. Factors beyond financial contributions, including discussions at the time of transfer, the nature of the relationship, and shared responsibilities, were deemed relevant. Financial independence throughout the relationship factored into the decision, leading to a 65/35 split in favour of Ms Dowden.

Lord Neuberger dissented, advocating caution against frequent changes to law and promoting the use of resulting trust when factors beyond direct financial contributions are absent. He underscored the importance of inferring rather than imputing intentions, emphasising that clear evidence of a departure from the initial apportionment is required.

Stack v Dowden is foundational in shaping the legal landscape surrounding cohabiting couples and property ownership. The decision highlights the nuanced considerations, emphasising the need for a holistic assessment of contributions and intentions to ensure a fair distribution of beneficial interests in family homes. The case remains instrumental in guiding subsequent cases dealing with the intricacies of cohabitation breakdowns and property entitlements.