I’m Not Married and Separating From My Partner - What Are My Rights?
As an unmarried cohabiting couple, although you will share the same financial concerns as a married couple on separation you should be aware that your legal rights differ, that is even if you have children together or have lived together for a long time.
Cohabitation Agreement?
A Cohabitation Agreement is a legally binding document drawn up by unmarried couples who are living together. You can draw up an agreement at any time although it is better to do so before you move in together. The agreement sets out arrangements for finances, property and children whilst you’re living together and if you split up. In order for the agreement to take legal effect, it must be drafted and executed properly and must be signed as a deed. It is therefore essential to seek legal advice to prepare such agreement.
Unmarried Couples and Property?
If your property is held in your joint names you will either be holding it as tenants in common or joint tenants. As joint tenants you hold it equally on the title deeds and any proceeds from a sale will therefore be split 50/50 even if one party contributed more to the purchase price. If you hold the property as tenants in common you generally hold it in shares to reflect your contribution to the purchase price (although it can be equal shares). You will usually also have a Declaration of Trust drafted on purchase setting out your respective shares in the property. You should therefore be aware of the differences especially when purchasing a property as an unmarried couple.
What if The Property is in my Partner’s Name Only?
In many cases the property is purchased in a sole name only. But what if you have contributed to the mortgage or you both intended from the outset that the property was to be shared? In some circumstances, where there is a dispute, an application can be made to the Court under the Trusts of Land and Appointment of Trustees Act 1996 (ToLATA) whereby the non-owning spouse will need to show that they have a beneficial interest in the property. This can be evidenced through a number of factors such as discussions when purchasing the property and financial contributions from then on, however this is a complex area of law and you should seek legal advice before considering making a claim.
How to Avoid Court?
As mentioned above, a Cohabitation Agreement made at the beginning of cohabitation can prevent the cost and distress of litigation if you were to separate and where you do not intend to marry. If you do find yourself separating as an unmarried, cohabiting couple without a Cohabitation Agreement you can also use mediation as an effective solution to Court proceedings and parties are encouraged to look at other forms of dispute resolution.
Our Family Team here at Ramsdens are extremely experienced in the above areas of Law and offer free 30 minute appointments for anyone seeking legal advice. Please contact a member of the team on 08000 147720 if you would like to make an appointment.