Article by Manny Wood published in the Coffs Coast News Of The Area on 14 March 2025.

Peter and Sally are engaged to be married. Sally moves into Peter’s home and contributes towards renovations to the property.

They decide to purchase an investment property and the property is registered in joint names. There is no written agreement between them in relation to the purchase.

Unfortunately Peter and Sally never marry, and 18 months after their relationship commenced, Peter and Sally separate and their relationship comes to an end.

A dispute arises in relation to the investment property and Peter files a claim in the Supreme Court of NSW. He seeks an order to the effect that he is entitled to the whole property on the basis that he paid the full purchase price.

Sally says that Peter gifted her interest in the property to her in recognition of their relationship and her contributions towards renovations to Peter’s home. She says the inclusion of her name on title of the investment property was not conditional upon her marriage to Peter.

The Court accepts evidence that Peter paid the whole of the investment property’s purchase price and that a mortgage was not obtained.

The Court observes that the purchase of property as “joint tenants” is consistent with a relationship in the “nature of a marriage”.

The Court further notes that because Peter and Sally’s relationship did not last two years or more, their property interests cannot be adjusted under the Property (Relationships) Act and must be determined by the “general law” with reference to the failure of a “joint endeavour”.

In determining the legal entitlements of the parties, the Court examines their financial and non-financial contributions and without engaging in a “precise arithmetical calculation” rules that it would be unconscionable for Peter to deny Sally’s contributions towards the property and unconscionable for Sally not to recognise Peter’s payment of the whole purchase price.

Ultimately, the Court considers a “just outcome” is for the property to be sold and the proceeds divided two-thirds for Peter and one-third for Sally.

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 not legal advice.