WHEN Frank and his wife divorce, their adult daughter, Amanda moves into the matrimonial home with Frank.

Amanda contributes to the payment of a lump sum to her mother, in return for her transferring her interest in the home to Frank.

Amanda also pays for significant renovations to the property.

To protect Amanda’s interest in the home, they enter-into a Deed, transferring the whole property to Amanda in return for Frank retaining a “right to reside in the home for life”.

A few years later, Amanda enters-into a relationship and her partner moves into the home. Frank has a falling-out with Amanda’s partner and moves out shortly thereafter.

Frank seeks legal advice and commences proceedings to have Amanda removed from the property, claiming he is entitled to “exclusive possession”.

The trial judge dismisses Frank’s claim on the basis that whilst he was entitled to reside in the home, if he chose not to do so, he was not entitled to compensation.

The Court notes that unfortunately, the Deed did not address the possibility of a breakdown in the parties’ relationship.

On appeal, the Court considers the relevance of the Property (Relationships) Act.

This act requires a finding that there was a close personal relationship between two adults, whether or not related by family, who were living together, one or each of whom provided the other with domestic support and personal care.

Upon finding that there was a “close personal relationship”, the Court has the power to exercise its discretion to adjust interests in property which are “just and equitable” having regard to the financial and non-financial contributions of the parties.

Frank asks the Court to order Amanda to pay him $100,000 to obtain an “extinguishment” of the life interest.

Ultimately, the Court makes the orders sought by Frank and given that the amount claimed was “not large”, declines to engage in a “detailed analysis”, which might have been appropriate in other cases.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This fictional column is only accurate at today’s date and is not legal advice.

By Manny WOOD, Solicitor