The marriage between Michael and Sarah has encountered difficulties, and the couple have decided to part amicably. They are both keen to go their separate ways with no financial responsibilities towards each other, and so they propose to divide their assets according to their beneficial entitlements in property law. They do not want the court to impose an arrangement under the MCA 1973.
Advise Michael and Sarah on their beneficial entitlement to the following:
(a) On their engagement, Michael gave Sarah an antique diamond ring, worth £5,000 that belonged to his grandmother,
(b) £20,000 invested in a building society savings account, which is held in joint names,
(c) Shares to the value of £6,000 registered in Michael's name, but paid for with a cheque drawn on the couple's joint bank account,
(d) The matrimonial home, registered in Sarah's name. The initial deposit of £20,000 was paid by Sarah with money from an inheritance, but the mortgage installments have been met from the joint bank account.
(e) Michael spent every weekend for a whole year renovating the property and carrying out all the interior design. The house was purchased for £100,000 five years ago, and is now worth £150,000. The outstanding mortgage is £20,000.