The applicant husband and respondent wife separated after a short marriage.
During the relationship, the parties engaged in a corporate reorganization to shield the husband's farm assets from his creditors, including his former wife and a victim of his sexual impropriety.
This involved transferring a 50-acre parcel to the wife and issuing her half the common shares in a newly formed farm corporation.
The husband claimed a resulting trust over all the assets, arguing he never intended to gift them to the wife.
The court agreed, finding the transfers were gratuitous and part of a judgment-proofing scheme, and the wife failed to rebut the presumption of a resulting trust.
Consequently, the wife's claims for occupation rent were dismissed.
However, the court ordered the husband to pay an equalization payment and to compensate the wife under a constructive trust for mortgage and tax payments she made on the 50-acre property.