Matrimonial Homes and Property Act 1981

1 Dwelling house held by trustees

(1) In the [1967 c. 75.] Matrimonial Homes Act 1967 (in this Part of this Act referred to as " the Act of 1967 ") for the words " any estate or interest" in section 1(1) and for the words " an estate or interest " in section 2(1) (which refer in each case to the estate or interest entitling a spouse to occupy a dwelling house) there shall be substituted the words " a beneficial estate or interest ".

(2) In section 1 of the Act of 1967 after subsection (5) (which relates to the satisfaction by a spouse having rights of occupation under the Act of liabilities of the other spouse) there shall be inserted the following subsection—

“(5A) Where a spouse is entitled under this section to occupy a dwelling house or part thereof by reason of an interest of the other spouse under a trust, all the provisions of subsection (5) above shall apply in relation to the trustees as they apply in relation to the other spouse.”

(3) In section 2(3)(b) of the Act of 1967 for " (5) " there shall be substituted " (5A) ".

(4) In section 2 of the Act of 1967, after subsection (1), there shall be inserted as subsection (1A)—

“(1A) If, at any time when a spouse's rights of occupation are a charge on an interest of the other spouse under a trust, there are, apart from either of the spouses, no persons, living or unborn, who are or could become beneficiaries under the trust, then those rights shall be a charge also on the estate or interest of the trustees for the other spouse, having the like priority as if it were an equitable interest created (under powers overriding the trusts) on the date when it arises.

In determining for purposes of this subsection whether there are any persons who are not, but could become, beneficiaries under the trust, there shall be disregarded any potential exercise of a general power of appointment exercisable by either or both of the spouses alone (whether or not the exercise of it requires the consent of another person).”

(5) In the provisions of the Act of 1967 mentioned in Schedule 1 to this Act there shall be made the amendments provided for by that Schedule, being amendments arising out of the insertion of section 2(1A) in that Act.