Schumann v Schumann (No 2)

Schumann v Schumann (No 2) concerned a dispute between a husband and wife regarding the matrimonial home. The wife sought to have the matrimonial home, which was registered in the husband's name, declared as held by him on trust for both parties. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the husband held the matrimonial home on trust for himself and his wife, despite the property being registered solely in his name. This involved an examination of the principles governing resulting and constructive trusts in the context of a matrimonial home where contributions may have been made by both parties, even if not directly to the purchase price or mortgage.

The Court considered the principles of resulting trusts, which arise where a party contributes to the purchase price of property. However, the Court also extensively discussed the principles of constructive trusts, particularly in circumstances where it would be unconscionable for a legal owner to deny the beneficial interest of another party who had made contributions to the property, whether financial or otherwise, and had acted to their detriment in reliance on an understanding that they had a beneficial interest. The Court analysed the nature and extent of the wife's contributions and the common intention or understanding between the parties regarding the beneficial ownership of the home.

The High Court ultimately found that the husband held the property on trust for himself and the wife in equal shares. The Court ordered that the property be sold and the proceeds divided equally between the parties.