How Can Cohabiting Couples Protect Themselves?

When ‘lockdown’ was announced back in March due to the threat of Covid-19, many couples made a decision to move in together and fast-track their relationships (so to speak), to avoid a lockdown apart. 

As time passed, for many, living together or “cohabiting” as it is also known, is now part of the ‘new normal’.

The Office for National Statistics has revealed that there are now over 3.5 million couples living together in the UK, as it becomes increasingly commonplace to buy a home or have children before marriage.

Statistics also reveal many couples are opting against marriage altogether, for one reason or another; with marriage rates continuing to fall. Hence cohabiting couples are the fastest growing family type in the past decade.

Many people who are cohabiting, believe that they share many of the same rights as a ‘common-law’ wife or husband. They are totally unaware of the limited legal protection they have if the relationship breaks down. 

Put simply, the truth is that unmarried couples living together do not have the same rights as married couples or as those who have entered into a civil partnership.

Some of the facts surrounding cohabiting:

• Cohabitants have little or no legal protection if the relationship ends.
• Cohabitants cannot share pensions.
• There is no right to claim maintenance if you are the weaker party financially in your relationship (the only statutory obligation is for the payment of child maintenance).
• Cohabitants do not legally ‘share’ property unless it is jointly owned. 
• If a cohabiting relationship breaks down, and property is involved, this is governed by the Law of Property and the Law of Trusts.
• If the house/property type is in one party’s name (on the title deeds), the prospects of seeking a share of this asset are significantly reduced if you are not married.

How Can Cohabitants Protect Themselves?

We have met and helped many clients over the years who have been cohabiting. Couples who lived together (for years and years sometimes), but simply did not enter into a civil partnership or marriage; for their own reasons. 

However, when the relationship broke down and ended, they found they had no entitlement to any share of the property or financial support. As a couple, you may take decisions along the course of your relationship that may leave individual parties more vulnerable.

Another scenario we have regularly come across, is when it is not clear whether or not both parties have an entitlement to a share in any property and if so, in what proportions.

We often don’t like to consider the negative side or what might happen if the relationship ends, but it is important to. There are a number of options available to cohabiting couples: 

Cohabitation Agreement – this is an agreement that can be entered into at any time during a relationship and can cover multiple matters. These can include property rights, financial provisions, child arrangements and the ownership of possessions should the relationship breakdown.

Declaration of Trust – a Declaration of Trust (also known as a Deed of Trust) is a legally-binding document recording the financial arrangements between joint property owners, and/or anyone else with a financial interest in the property.  A declaration of trust can record the financial contributions both parties have made towards its purchase and/or upkeep, or reflect another agreement as to how the net value or equity in the property would be split in the event of a future sale between the parties regardless of financial contributions. For a Declaration of Trust to be effective, the parties must own the property as Tenants in Common.

The advantage of a declaration of trust is that it can help avoid a costly dispute if the relationship ends.

Make a Will – put simply, if you are not married, or have not entered into a civil partnership, and you die without a Will, your partner will not automatically inherit your estate. Regardless of if you were in a long-term and very loving relationship. Your partner could potentially be left with nothing. For more information, visit our blog. 

MTLS offer a FREE CONSULTATION and we are offering various types of appointments, to suit our clients needs. We are available to meet in person; we have a visor and are following safety guidelines. We can discuss matters over the phone with you or via a virtual meetings, such as via Zoom, Skype or FaceTime. 

To book your FREE CONSULTATION, please get in touch!

T: 01604 591242

E: mark@mtls.co.uk