With the Office for National Statistics (ONS) reporting that the proportion of married people in England and Wales has dropped below 50% for the first time, rights for cohabiting couples is a hot topic. Head of Civil and Commercial Litigation, Andrew Leakey, discusses what unmarried couples need to consider when moving in together.
Understanding misconceptions around property rights
I’m recently back from a snowboarding holiday with my nephew (23) and son (17). An amazing time was had by all on the slopes. One conversation with them was particularly striking. My nephew has worked hard and is a homeowner. My son warned him that if a girlfriend moved in with him, she’d gain a share in the property in, is it 6 months, Dad?
This is a very common misconception, and many people believe that ‘common law marriage’ entitles the partner that does not own the home to a share in the property once they have lived there for a certain amount of time. However, in England and Wales, that is simply not the case.
Couples that are married or in a civil partnership automatically gain legal rights to most assets owned by their partner, including property. But for unmarried couples, the rights around home ownership are often very strict.
What are your rights as a sole homeowner?
The default position is that unmarried partners do not have a stake in the other’s property if they separate. For partners living together where only one person is on the house deeds, it could leave the other very exposed if their relationship were to breakdown.
Without any legal agreements in place, it can be incredibly difficult for someone living in a home that their partner owns to gain any benefit from the property should they separate. In some instances, you can enforce a promise to transfer all or part ownership. This is only if you can prove that you suffered a detriment, for example by paying towards a mortgage or for renovations, on the promise that you would at some point own part or all of the property. However, this cannot be proven in every case.
There are options to couples to protect both parties’ interests when unmarried but living together, even if only one person owns the home. A common option is a ‘cohabitation agreement’, which clarifies each person’s assets and outlines what arrangements would need to be made if the partnership were to end.
If you are looking to purchase a home with your partner, there are also routes into owning part of a property. Written co-ownership agreements are signed by both parties and witnessed and are often carried out at the point of purchase.
My lesson to the lads? If you’re buying a property with someone, get it all written down in the correct way with the support of a solicitor. Also, don’t promise shared ownership if that’s not a promise you’re intending to keep!
How Jackson Lees can help
As a homeowner, it is crucial that you understand your rights, particularly if you are cohabitating with a partner. After all, your home is one of the biggest purchases you will every make, it only makes sense to protect it. If you need advice on joint ownership, our team of solicitors are on hand to provide you with comprehensive, expert advice. Call us today or make an enquiry to speak to our team.