Sharing a home with a new partner can be an exciting time, and the last thing on your mind at the time may be what happens if the relationship breaks down. However, this happens all too frequently and disputes over the home are common and they usually revolve around who is entitled to what.
Many cohabiting couples believe that they automatically have rights as cohabitees, and there is a common misconception that if couples live together for a time they will acquire the status of 'common law' husband or wife (something that doesn't in fact exist) and have similar rights as if they were married. This is just not so.
More and more couples now choose to buy a house together while not marrying. However no matter how long the relationship lasts the law still treats the couple as separate individuals with no special obligations to each other. This has huge consequences for the main asset in the relationship, the home.
How a jointly owned property is split on separation depends on whether it is held by the owners as 'joint tenants' or 'tenants in common'. Where there are 'Joint tenants' the property will pass from one to the other automatically on death, and on separation, there will be an equal split of the proceeds of sale. Therefore, if a couple are not contributing equally either to the purchase price or to the payments on the property it should be held as tenants in common. Each owner would then have a defined interest in the property which could reflect their contributions. The share of a tenant in common does not automatically pass to the partner in the event of death, but goes to the next of kin. It is essential therefore that couples holding a property as tenants in common make wills.
Imagine a situation where one partner puts down a significant deposit for a home for both only to find at the end of the relationship that because the property was held as joint tenants the proceeds of sale are divided equally and the initial contribution is not recognised.
The situation is worse if the property is owned by only one of the couple. Unmarried couples have no basic legal rights to their partners' property unless they can establish that there was a common intention that they would be entitled to a share in the property, either as a result of promises made, direct financial contribution or an understanding which led one of the parties to act to their detriment. This is easy to say but hard to prove.
However unpalatable, the message is - be practical and don't wear rose tinted glasses. Do the documentation now and have peace of mind. Raworths can help you.
Zoe Robinson
