Does a property increase in value after the date of trial support the imposition of a constructive trust?

Alberta, Canada


The following excerpt is from Freake v. Riley, 2010 ABQB 562 (CanLII):

In Mustard v. Brache, 2006 ABCA 265, [2006] A.J. No. 1137 our Court of Appeal held that an increase in the value of the property after the date of separation is a relevant factor in determining whether the equities of the case support the imposition of a constructive trust: para.17. Even though a court does not declare the existence of a constructive trust until trial, the trust is deemed to have arisen at the date of separation when the duty to make restitution arose. The result is that the applicant owns their share of the property at the time of separation: para.15. Accordingly, the applicant is entitled to share in the increase in value of the property between the time of separation and the date of the trial: para.18.

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