October 28, 2025
We have written before about the presumption of resulting trust and how it applies in case of marriage breakdown. The bottom line is that one spouse may be the beneficial (or “true”) owner of an interest in property regardless of whose name the property is registered in (“legal title”). Each case turns on its own facts, but where the spouse not on title contributed to the purchase, the presumption of resulting trust applies.
THE ISSUE
This brief post highlights a Court of Appeal decision which clarifies that the presumption of resulting trust may apply even where the claim is not made until after the divorce. That was the key issue in Alami v. Haddad.
THE CASE
In that case, the home was registered in the wife’s name only. The court holds that in order to equalize family property, title to the property must be decided by the court. This includes whether legal title actually reflects beneficial or true ownership.
Both parties had contributed funds to the purchase of the couple’s first home. The proceeds from the sale of that home were used to purchase the home which was in the wife’s name at the time of the divorce.
The trial judge found no evidence that the husband intended this to be a gift to the wife . Thus, the presumption applied. The resulting trust survives the divorce and must be considered in equalization of assets.
As usually happens, the Court of Appeal did not change the trial judge’s findings of fact.
In addition to determining that the husband was the true owner of a fifty percent interest in the home, the court gave the husband credit arising from a refinancing of the house done by the wife without the husband’s consent. This post-separation debt was the wife’s sole responsibility.
TAKEAWAYS
- “paper title” does not determine ownership for family law purposes.
- Property issues in marriage breakdown are complex.
- You need to make sure that you get everything to which you are entitled.
- The presumption of resulting trust is a subtle legal concept, and a good reason to have a lawyer represent you in your case
HOW WEILERS LLP CAN HELP YOU
The family law team at Weilers LLP have decades of experience assisting people like you, a time when you need expert help the most. For any family law questions, feel free to contact us and see if we are the right lawyers for you.