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ARTICLE · 30 NOVEMBER 2018

Bankruptcy Trustees And Equitable Interests

In a recent decision, Silvia (Trustee) v Williams [2018] FCAFC 194, guidance was given by the Full Federal Court in relation to a claim by a trustee of a bankrupt spouse that the bankrupt

AustraliaInsolvency/Bankruptcy/Re-Structuring

In a recent decision, Silvia (Trustee) v Williams [2018] FCAFC 194, guidance was given by the Full Federal Court in relation to a claim by a trustee of a bankrupt spouse that the bankrupt had a beneficial interest under an equitable trust in the family home.

In relation to claims like this, the long standing legal position is that a Court will only intervene and declare a proprietary interest in a family home when it would be unconscionable on the part of the person against whom the claim that is brought, to refuse to recognise the existence of an equitable interest in that property.

Background

A married couple Mr and Mrs Williams resided in a jointly owned matrimonial home on Blake Street, Dover Heights, New South Wales.

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