27/11/2017
Resolution, the national organisation of family lawyers committed to non-confrontational divorce, separation and other family problems, is holding its annual awareness week between 27th November and 1st December.
This year, the focus is on issues surrounding cohabitation and how many unmarried couples living together are unaware of their lack of rights should they separate.
When couples move in together, the last thing on their minds is the consequences of what happens if their relationship breaks down. If it does, all too often they can find themselves arguing over whom gets what when splitting the equity in their home.
Cohabitees don’t have the same rights as people who are married. This is particularly relevant if you’re living together and you’ve invested more money than your partner when purchasing the property as the starting point for dividing up the asset is 50/50.
In a situation where the house is in joint names, it doesn’t matter whether you’ve paid more into it or not; if there’s no cohabitation agreement in place, or proof of an arrangement regarding the financial split, the equity in the home will be divided equally.
If the property you live in is owned solely by your partner, but you contribute to the mortgage payments, bills or home improvements, you may want to claim some of the equity in the house. Although it’s possible, it’s a complex area of the law, so we’d strongly recommend you seek legal advice on your rights.
If you already own a house and your partner moves in with you, or is planning to move in, we’d also recommend you enter into a cohabitation agreement to ensure that your partner doesn’t assert in interest in your property should your relationship break down.
Cohabitation agreements set out how the finances are to be divided up on separation and the intention of you both with regard to the equity in the house. They identify any assets you bring to the relationship – money, property, possessions and the ownership of the same.
If you’d like some guidance on how cohabitation agreements work and what you can expect from them, our solicitors can talk you through it.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.