Favourable Settlement Reached at Mediation in TOLATA Dispute

The Client

Ms B came to us following her separation from Mr W. Although they were not married, they had jointly purchased a three-bedroom property some years earlier. Ms B had contributed a substantially larger deposit towards the purchase, while Mr W had made a smaller initial contribution and had met most of the mortgage payments over the following five years.

After the relationship ended, matters became difficult. Mr W remained living in the property and was unwilling to cooperate with either a sale or a buy-out. Ms B wanted clarity as to her financial position and a practical route to resolving matters without unnecessary delay or expense.

The Key Issues

This was a dispute under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), where the central issue was how the parties’ beneficial interests in the property should be assessed. Although the legal title was held jointly, that did not necessarily determine how the equity should fairly be divided.

It was therefore important to consider the available evidence, including the parties’ respective financial contributions and any indication of their shared intentions at the time of purchase and during ownership. There was also potential for a wider dispute, including a possible occupation rent claim and, if matters could not be resolved, an application under TOLATA for an order for sale and a declaration as to beneficial ownership.

My Approach

I took a practical approach from the outset, with the aim of resolving the TOLATA dispute as constructively as possible while putting Ms B in the strongest position.

I reviewed the financial background carefully and prepared a pre-action letter setting out her case for a 60/40 beneficial split in her favour. That correspondence highlighted her larger deposit contribution and invited Mr W to engage in mediation rather than allowing the matter to progress into contested TOLATA proceedings.

Mr W responded more constructively than had first appeared likely. While he argued for an equal division and proposed a buy-out, there was enough common ground for meaningful discussions to take place. Mediation was therefore arranged.

During the mediation process, both parties were able to clarify their positions properly. The documentary evidence suggested that Ms B’s case on beneficial ownership was a strong one, particularly given the size of her initial contribution. That helped focus minds on the risks of litigation and created the conditions for a realistic settlement.

Outcome

The matter was successfully resolved at mediation without the need for a final contested TOLATA hearing.

A settlement was reached on the basis that the beneficial interest in the property would be divided 65/35 in Ms B’s favour. Mr W agreed to buy out Ms B’s interest within 90 days. Ms B chose not to pursue an occupation rent claim, and Mr W also agreed to make a contribution of £1,000 towards her legal costs.

The agreement was then documented formally to reflect the terms reached.

This outcome gave Ms B certainty, avoided the cost and stress of prolonged litigation, and secured a result that properly reflected the strength of her position.

Comment from Daniel Knox

“Disputes between unmarried couples over property can become entrenched very quickly, particularly where one party remains in the home and the other is left without a clear resolution. In this case, careful preparation and a sensible approach to mediation helped achieve a fair outcome without the time and expense of a fully contested hearing.” – Daniel Knox, Family Law Solicitor, Clifford Johnston & Co.

Clifford Johnston & Co. supports clients with clear, practical and sensitive advice across a wide range of family and private client matters. Our Family Law Solicitors understand how stressful disputes involving property, separation and financial uncertainty can be, and we work hard to provide steady guidance, clear communication and practical solutions throughout the process.