What you need to know about cohabiting
May 24, 2024
What to consider when you cohabit with a new partner
When you start to cohabit with a partner, it is imperative to understand your legal rights. Getting the facts from the offset can protect you in the future.
When cohabiting it is sensible to protect your interests by entering into a Cohabitation Agreement. You should also make sure that you have a Will.
A Cohabitation Agreement is a formal signed agreement between you and your partner which sets out what will happen to the property and your respective financial resources in the event that the relationship breaks down.
Ownership when buying a property
If you buy a property together you should be certain that you understand the terms of the ownership.
When purchasing a property, you can own the property as ‘Joint Tenants’ or ‘Tenants in Common.’ It is important that you clarify the terms of ownership with your conveyancing solicitor.
Joint Tenancy means you jointly own the property. This means that if you sell the property, you will each receive an equal share of the equity in the property. Further, if either one of you dies, the property is automatically transferred in its entirety to the surviving cohabitee.
Tenants in Common means you each own a percentage share in the property. If you sell the property, you will each receive your specific share of the property. If you pass away, your share will pass in accordance with the terms of your will (and vice versa).
Financial contributions when purchasing together
Your conveyancing solicitor should provide you with full advice about your ownership options. If your respective financial contributions differ at the time of purchase, you can seek to own the property as Tenants in Common, in unequal shares.
You could sign a Declaration of Trust to reflect this agreement.
Living in a partner’s home
If you do not legally or beneficially own the property, you are unlikely to be able to make a claim against it. That is, unless you have specific evidence of contributions and/or agreements between yourself and the owner that you actually have a share in the property.
Unless your partner leaves the property to you in his/her Will, there is a risk that you will have no claims in respect of the property at all in the event of his/her death.
Children
When there is a child or children involved, the court have the power to award the parent with the child/ren some or all of the property in which the children live. This is a claim which can be made under Schedule 1 of the Children Act to provide a home for the child/ren. However, upon the youngest child reaching 18 years of age, the property needs to be transferred back to the original owners.
If you have questions about your rights as a cohabitee, please contact us for advice.
Holly Setchfield
John Hooper & Co
24th May 2024
