Senior associate Peter Hilton, in our Family Law team, discusses how personal belongings or ‘chattels' are dealt with on separation, how this differs between married and unmarried couples, and what happens when disagreements arise.
When relationships break down, disputes often arise over personal possessions. Whether that relationship breakdown is between a married couple, or unmarried cohabitees, disputes over household items, jewellery, furniture, artwork, personal belongings and sentimental items can become as contentious as financial assets. However, the legal framework governing ownership and possession of chattels differs significantly depending on whether the parties are married or cohabiting.
For divorcing spouses, the court's wide discretionary powers can enable a pragmatic redistribution of assets. For cohabitees, disputes concerning personal possessions are often determined through the more traditional principles based on ownership and, in some circumstances, the law of bailment.
What are chattels?
A chattel is tangible movable property. They include all manner of everyday items such as:
- Furniture and household contents;
- Vehicles;
- Jewellery and watches;
- Artwork and antiques;
- Electronic devices; and/or
- Collectables and personal effects.
Ownership of chattels is not always straightforward. The person in possession may not necessarily be the legal owner, and informal arrangements within domestic relationships particularly where parties have begun living together and combine their belongings, can frequently blur the distinction.
Chattels on divorce
In England and Wales, chattels form part of the parties' overall financial assets. Those assets are either addressed by agreement or can be distributed by way of an order within financial remedy proceedings.
In many cases, disputes over ordinary household contents are resolved by agreement. The costs of litigating over furniture or personal possessions often exceed the value of the items themselves. However, difficulties arise where items have significant financial or sentimental value.
Identifying ownership
Particularly in cases for unmarried couples, the starting point is usually establishing ownership. Relevant evidence may include:
- Purchase receipts;
- Bank statements;
- Insurance documentation;
- Registration records; and/or
- Evidence of gifting.
For married couples, ownership may be less important than in ordinary property disputes because the court has broad powers to redistribute assets to achieve a fair outcome.
The court's approach
The family court generally adopts a practical approach. Rather than conducting a detailed forensic examination of every item of household furniture, the court will often encourage parties to divide possessions consensually.
However, where valuable collections, antiques, vehicles, or business-related assets are involved, the court may:
- Declare ownership;
- Transfer ownership between spouses;
- Attribute values to items within the overall financial settlement; or
- Order sale and division of proceeds.
The guiding principle remains fairness, informed by the factors contained in section 25 of the Matrimonial Causes Act 1973.
The position for cohabiting unmarried couples
The position for unmarried couples is markedly different.
Contrary to popular belief, there is no such thing as a "common law marriage". Cohabiting couples do not benefit from the discretionary redistribution powers available on divorce.
Disputes concerning chattels are generally determined according to:
- Legal ownership;
- Trust principles;
- Contractual arrangements;
- Gifts; and
- Possession-based claims, including claims arising under the law of bailment.
This can produce outcomes that appear less flexible and, at times, less equitable than those available to divorcing spouses.
Bailment: An Overlooked Remedy
The law of bailment is often associated with commercial arrangements such as storage contracts or delivering shipments of goods. However, this oft-overlooked concept can also arise in domestic disputes between former cohabitees.
The test to establish a bailment is:
- One person (the bailor) delivers possession of goods to another;
- Ownership remains with the bailor; and
- The recipient (the bailee) assumes responsibility for the goods.
For example, a common scenario is that one person moves out and leaves personal possessions at the former shared home. The remaining occupier may become a bailee of those goods. They owe duties to take reasonable care of the items and cannot simply dispose of them immediately.
Although the second party is the possessor, and may control the item physically, ownership remains with the original owner. In those scenarios, a bailee is generally required to keep the goods in good care, and return them when required.
A failure to return goods may give rise to claims in conversion (previously referred to as ‘detinue').
Conversion
Conversion is a legal claim seeking the return of chattels or seeking reimbursement for their value.
This often forms a separate point of claim as part of wider Trust of Land disputes between cohabitees, where married couples would generally seek to rely on the Court’s wider discretion to distribute property (as referenced above).
The most common scenario is that one party fails to return goods in their possession, despite a reasonable request by the owner.
The rules around limitation do apply to conversion claims, so it is important to act swiftly and take advice to ensure your position is protected. Usually it is possible to resolve these disputes without reference to the Court, particularly given the proportionality of involving the Court in disputes over chattels. However, in the event it is not, then professional advice should be taken.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
