The Court of Appeal has issued an important warning to married couples over how property acquired during marriage may be shared if a dispute arises.
The court has ruled that a spouse is not automatically entitled to an equal share of property simply because the property was acquired during the marriage. Instead, courts must look at the contribution made by each spouse before deciding how the property should be divided.
The decision came from a case involving a house in Avenue Park. The court reviewed an earlier High Court decision that had awarded the husband 20 per cent of the property.
After examining the evidence, the Court of Appeal changed the distribution and awarded the husband 80 per cent of the house while the wife received 20 per cent.
The judges noted that the husband had bought the property using a loan and had personally paid the loan from his salary. The court found that the evidence did not support the earlier distribution of the property.
However, the ruling does not mean that the spouse who earns money or pays for a property will always receive the bigger share.
The court made it clear that contributions within a marriage are not only about money. Non-financial contributions are also important when determining how matrimonial property should be shared.
These contributions can include taking care of children, doing household work, supporting a family business, managing the home and providing other support that helps the family acquire or maintain property.
The dispute involved a couple whose marriage had lasted for several decades. During their marriage, they acquired several properties and built their family life together.
The latest decision therefore serves as an important reminder that property disputes can be decided based on evidence of contribution.
Couples may need to keep proper records of major financial contributions, loan payments, property purchases and improvements.
The ruling also shows that marriage does not automatically mean that every property acquired during the union will be divided equally.
Each case will be considered according to its own circumstances, with the court looking at both financial and non-financial contributions made by the spouses.