Sitnovski v Trpkoski

In the matter of Sitnovski v Trpkoski, the Federal Court of Australia was tasked with determining the respective beneficial interests of three siblings, who had acquired a property as tenants in common, each holding a one-third share. The siblings had contributed to the purchase of the property, and the sister in question was seeking a declaration that she held a one-half beneficial interest in the property. The mother and brother sought to establish that the sister had a one-third beneficial interest, as per her legal interest. The legal issues before the court were centred on whether the sister had made a disproportionately low contribution to the acquisition of the property, thereby justifying a departure from the presumption that each party holds an equal beneficial interest in proportion to their legal interest.

The court considered the evidence presented regarding the contributions made by each party towards the acquisition of the property. The mother and brother argued that the sister's contribution was significantly lower than theirs, and that this justified a departure from the presumption of equal beneficial interests. However, the court found that there was insufficient evidence to support this claim, and that the sister's contribution was not disproportionately low. The court further held that there was no basis for denying that the sister had a beneficial interest in the property, in addition to her legal one-third interest.

In light of the above, the court held that the sister held a one-half beneficial interest in the property, alongside her legal one-third interest. The court found that the evidence did not support the claims made by the mother and brother, and that the sister was entitled to a declaration to this effect. The court held that the presumption of equal beneficial interests should apply in the absence of evidence to the contrary, and that the sister was entitled to a declaration that she held a one-half beneficial interest in the property. The final orders of the court reflected this decision, with the sister being granted the declaration sought.