Beneficial interest

[RANGER1]

Hi all

My wife and are getting a divorce. About 4 years ago my wife's mother decided to convert a barn on mine and my wifes land. It was at her expense.

No agreements verbal or otherwise were in place, we have a 240k mortgage remaining, the whole property is valued at circa £775k.

My wife and I are the joint owners with the land registry. My wifes mother is now saying she would like £120k returned.

We have spent a fortune on the property including a new shed, renovated our own home and gardens etc.

I sweat blood and tears to buy the place and at the time we could have renovated it ourselves and get rental money from it.

Any help from a lawyer would be hugely beneficial to me.

[atticus]

It is not going to be possible to offer any advice just on that information.

First question: what was the arrangement when your mother in law paid for the barn to be converted? What was the plan? Why did she pay for this to be done?

[RANGER1]

She wanted to live next to us. No arrangement in place. I was flabbergasted at what was done now I am in a sticky mess.

[dslippy]

You may be in a mess now, but the proposal seems generous on her part (accepting that much more needs to be known).

[atticus]

How - if at all - has the value of the property been enhanced by the barn conversion?

[RANGER1]

Yes the barn has enhanced the price but no agreement in place and I stated from the outset no monies would be returned.

[atticus]

There could well be more to this than that. Did your wife also say that?

[dslippy]

Ranger1, what you say is entirely consistent with the creeation of a trust in her favour. She may not get money back. but gets an interest in the property. Equally she may not have done.
If she applied to the court using your exact words here, a court could easily find a trust in her favour, whose value could well exceed the amount she asks for.
We cannot possibly say from here. There are many details to be discovered and considered.
I just want to get across that she may be being generous to you.