Information, advice, rights, agreements, declarations and more
Generally, most cohabitation disputes arise when unmarried couples who have been living together reach the end of their relationship, and the time comes that one party is asked to leave the residence they have been sharing for the duration of their time together.
Many couples that live together believe they acquire the rights of a ‘common law’ spouse after a few years. However, this isn’t true, which means that you can live with your partner on their property for many years, contributing financially to the household, but still be asked to leave when the relationship ends with no rights. That’s why it is almost always in the interests of all parties to have a cohabitation agreement from the outset.
Cohabiting in the UK is defined as an unmarried couple who are living together in a long-term relationship, which resembles a marriage. Technically, ‘cohabitants’ can refer to any number of people who are living together.
As more and more people are choosing to cohabit with friends and family members, either to help them save for a deposit or to help share the mortgage cost of a mortgage, it’s not only the traditional cohabiting couple that could suffer during a cohabitation dispute.
If you are considering buying a house with friends or family, disputes can arise for many reasons including when one party wants to sell the property and move on, and the other party – or parties – do not want to sell. We advise that all possible issues need to be discussed and clearly agreed upon before a property is jointly purchased as joint owners, including whether you will be joint tenants or tenants in common in the cohabitation agreement.
What is a cohabitation agreement?
Cohabitation agreements, also known as living together agreements or contracts, set out how you and your partner, or family member(s), will manage money matters in relation to the property. You can make a cohabitation agreement at any time, it does not have to be at the start of the cohabitation.
A cohabitation agreement can cover how you will share the rent or mortgage, utilities, and how to deal with any bank accounts, property and assets if you should cease living together. A cohabitation agreement helps agree on things in a fair way to avoid property disputes, without the emotional pressures which can arise when a relationship breaks down, or a family member decides to move on.
What is a Declaration of Trust?
A Declaration of Trust is a legally binding document which sets out who owns a property and exactly how the property proceeds should be divided if it is sold. Most commonly it is used to protect a person’s initial contribution where the contributions are unequal. A Declaration of Trust is something that you should consider when you are buying a property with a partner, friend or another family member.
Whether you are about to move in together or are already in cohabitation, our family team can advise you of your options and what agreement is best for your situation.
What are the rights of a cohabiting couple?
If you are not married or in a civil partnership, the law does not give cohabiting couples any specific rights over property, pensions or savings, even if you see yourself in a common-law marriage. This means that if, for example, one of you owns the property you live in while you are together, the other party has no legal claim on the property if the relationship ends, even if they have contributed equally to household costs over a long period of time.
The same applies to pensions, savings, and investments, as these will generally remain the property of the person whose name they were originally in. It is therefore important for both parties to agree from the outset in a legally binding document what they agree to contribute, and what they want to get back if unfortunately, the relationship breaks down.
What if you have had children while cohabiting?
The law treats arrangements for children the same for married couples, cohabiting couples and couples in a civil partnership. If you have children together, the partner that becomes the resident parent will usually be entitled to receive child maintenance from the other parent.
Because the law puts the rights and wellbeing of children above all else in cases of parental separation, it’s possible the resident parent will even retain the right to stay in the family home until any children reach the age of 18, even if the non-resident parent has ownership of the property.
If you are involved in a dispute with a former partner, whatever your marital situation, then one of our family team can help you in resolving any issues that arise.
General advice about buying a property with another person or persons
To avoid property disputes between cohabiting couples, when buying a property with another person, or if you are considering contributing to the costs of another person’s property, you should always:
- Know your rights and protect your interests
- Consider and communicate with any co-purchaser about what you will do ‘if things go wrong’ initially in discussion, then follow up in writing
- Explain your own financial circumstances and understanding with your own conveyancer and do not rely on the other purchaser(s) to do this on your behalf
- Make sure you understand the implications of all the documents you are signing at the time of a purchase
- Seek independent legal advice before contributing monies towards a property with another person, at any time, in any circumstances
Remember, any relationship – including those between family members – can fail or sour. Courts are not given the power to correct or address the behaviour of a party in terms of their dealings with property or funds; they only recognise transactions, not the relationships which gave rise to them.
You should always seek legal advice when moving in with someone, to avoid needing dispute resolution. All litigation is expensive and carries risk – so prevention is always better than cure…
How Mortlake Law can help
You should note that while judges will often be guided by them, cohabitation agreements are not 100% binding in law. To protect all parties as fully as possible, our family law experts are able to prepare your cohabitation agreement as a formal legal deed to indicate to the court that all parties want to be bound by it.
Mortlake Law family lawyers have the expertise to help resolve all cohabitation issues, with Richard Buxton having 45 years of qualified experience to guide you through.
Call us now on 020 3935 9490 or email richard@mortlakelaw.co.uk and we will be happy to call you and discuss your options without obligation.