Bankruptcy

The Chancery Division ruled in a case concerning the equitable accounting between the parties on the sale of a house, which had been declared in a land registry TR1 transfer form to be held on trust for a husband and wife as joint tenants, and in circumstances where the husband had never lived at, or contributed to, the property and had subsequently been made bankrupt. The court held that ss 12 to 15 of Trusts of Land and Appointment of Trustees Act 1996 had not replaced the doctrine of equitable accounting and that the correct apportionment of the proceeds of sale of the property would be to split the net proceeds equally between the trustee and the wife, and then to give the wife additional credit for one half of all the payments she had made under the mortgage(s) from the date the property had been purchased to the date upon which the property was sold. The court