The applicants, joint tenants of a residential property, sought an order under the Partition Act authorizing the sale of the property and division of the proceeds.
The respondent, the former spouse or common-law partner of one applicant and residing in the property with their children, agreed to the sale but sought to have the entire proceeds held in trust pending anticipated claims relating to family property, businesses, and support.
The court held that the respondent had not commenced any proceedings asserting such claims and therefore had no basis for pre-judgment or pre-litigation security against the other applicant’s share of the proceeds.
The court authorized the sale of the property and ordered that only the applicant spouse’s half of the proceeds be held in trust, with the co-owner sibling free to receive her share.
The balance of the application relating to financial claims between the spouses was converted to an action.