Beneficial Interest

The right to enjoy the economic benefit of property, even where legal title is held by another party such as a trustee. In enforcement, identifying a judgement debtor's beneficial interest in property is critical for charging order applications and orders for sale.

In practice

Creditors often apply for a charging order over a debtor's beneficial interest in a jointly owned property. The court will consider the extent of the beneficial interest, which may differ from the legal ownership split, particularly where there are unequal contributions to the purchase price.