The Basics of Resulting Trust in Family Law
Introduction
The world of family law is filled with complex legal jargon and concepts that can often confuse those without a background in law. One such term that is often thrown around during property disputes in family law cases is a 'resulting trust'. This blog post aims to shed some light on what a resulting trust is, its relevance in family law, and how it differs from other types of trust claims.
Resulting Trust
A resulting trust is a type of trust relationship that arises when one party contributes to the acquisition of a property but does not hold the title to it. The nontitled owner's contribution could have been direct, or the property could have been transferred gratuitously to the titled owner. The legal assumption here is that a gift is not presumed. If the contribution can be proven, a resulting trust will exist for the benefit of the claimant. This legal construct is codified in Section 14 of the Family Law Act, R.S.O. 1990, c. F.3 (“FLA”), specifying that a presumption of a resulting trust occurs between married spouses, except where title is held jointly.
Resulting Trusts in Family Law
In family law, resulting trusts generally emerge under two circumstances:
When property is transferred from one spouse to the other without consideration.
When both partners contribute jointly to the acquisition of an asset, but the title is held by only one of the spouses.
Resulting trusts are not dependent on both spouses intending for the non-titled spouse to have an interest in the property. One instance of a resulting trust is when common-law spouses both contribute equal funds for the down payment on a home, but the title is only in one spouse's name.
Distinguishing Resulting Trusts from Other Trust Claims
Resulting trusts are different from other types of trust claims that arise from unjust enrichment. Unjust enrichment occurs when one party benefits at the expense of another without legal justification. In situations of resulting trust, the claimant's contributions to the property are usually more explicit compared to claims of unjust enrichment. Thus, during a relationship breakdown, parties often turn to the law of unjust enrichment and constructive trust over resulting trust.
Conclusion
Understanding the nuances of legal concepts such as resulting trusts is crucial in navigating the complex landscape of family law. While the concept may seem daunting initially, knowing how it operates can provide a better understanding of property rights and distribution during the resolution of family disputes. As always, reach out to a legal professional for tailored advice to your specific situation.
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