Protection for Unmarried Couples Living Together

The number of unmarried couples choosing to live together has increased dramatically in recent years.  If the relationship breaks down, the couple do not have the same financial protection as those who are or have been married or have or had entered into a civil partnership.  This comes as a surprise to many who had simply assumed that the law would protect them.  There is no such thing as a common law wife or husband. We can help you with deeds of trust and wills.

Properties and Deeds of Trust

If a property is bought in joint names it should be divided on separation according to the recorded ownership and either party can force a sale to achieve this.  If the parties contribute unequally either to the purchase price or renovations that improve the value of the property (e.g. replacement windows, new bathroom or kitchen) then the property should be held as Tenants in Common in unequal shares with the shares being be recorded in a Deed of Trust.

A Deed of Trust sets out each party’s legal rights over a property.  It records the percentage of its value that each party owns and what is to happen to the property if the relationship comes to an end.  This detail is not recorded at the Land Registry or by your mortgage lender and therefore this document may be the only written record that will exist which confirms the extent of each party’s ownership.  The Deed of Trust can be rewritten at any time if the balance of contributions to the property alters and the parties wish such additional contributions to be recognised.

If a property is owned in the sole name of one party and the other party moves in to it, it remains the sole property of the owner throughout and on separation.  The non-owner may be able to establish a financial interest in it if there was an agreement either orally or in writing made between them to this effect, if the non-owner acted to their detriment in the understanding that they had a financial interest e.g. contributing to the mortgage repayments or if the non-owner made a direct financial contribution either to the purchase or to renovations that increased the value of the property.  Once again, a Deed of Trust or Living Together Agreement should be considered to record the intention of the parties once they begin living together.

A Deed of Trust is designed to limit areas of dispute on relationship breakdown and hopefully avoid a lengthy and expensive battle in court.

Wills

As unmarried couples are not related, they are not considered in the Intestacy Rules.  Therefore, if one of the parties dies without a Will, his/her estate will be divided between his/her family.  Unmarried couples should therefore consider making Wills to offer financial protection to one another in the event one of them dies.

Some people find themselves in a position where they have become so financially dependent upon their partner for example if they have given up work to care for children and/or have moved into a property owned in their partner’s sole name.  When the relationship ends they can find themselves without a home or income to support them.

It is therefore sensible and prudent to consider what agreements you can both enter into to protect yourselves in the event that things do not necessarily work out as you had planned.



If you wish to know more about Deeds of Trust or Living Together Agreements, please do not hesitate to contact Elizabeth Bettes, Head of our Family Department.

Published on 24/02/2010