Kim Beatson examines the role of equitable accounting in family property disputes
The equitable accounting exercise enables the co-owner who has provided money towards a property to reclaim sums that have been spent post-separation. It has to take place in most Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) cases and will usually form part of the substantive claim. Usually, one of the co-owners will continue to live in the jointly held property after the date of separation and will therefore be responsible for paying the mortgage instalments, rates and other outgoings.
The process of equitable accounting has its basis in 18th century chancery proceedings, many of which involved married co-owners (see Leigh v Dickenson (1884) 15 QBD 60). This Court of Equity case established that the proportions in which the entirety of the proceeds of sale should be divided between former co-owners must have regard to any increase in the value of the property brought about as a result of such expenditure.
In Hill v Hickin [1897] 2 CH 579, Stirling J referred to the Court of Chancery practice
