Co-Habiting Couples
COHABITATION AGREEMENT SOLICITORS IN READING & HENLEY
Recent figures reveal that non-married co-habiting couples are the fastest growing family type in the UK, accounting for around 20% of families in the UK and rising.
Alarmingly, it is estimated that over 60% of people in the UK in this type of relationship mistakenly believe they have a ‘common law marriage’ which provides them with various rights and protections regarding finances etc. In fact, the law does not recognise the concept of a “common law marriage” in the UK and unmarried couples do not acquire any legal status between them, no matter how long they have been together. This is where our cohabitation agreement solicitors in Reading and Henley can help.
Legal Rights of Unmarried Couples
In the UK if an unmarried couple breaks up, they do not have automatic rights to claim financial support from each other, no matter how long they have been together, even if that support is needed. If they have children of course, the resident parent can seek child support from the non-resident parent (at rates prescribed, assessed and if necessary collected by the Child Maintenance Service).
Other differences from legally married couples include:
- Should one partner die the surviving partner will not automatically inherit anything from their estate – unless the couple jointly own property (subject to how that joint ownership is set up)
- An unmarried partner who stays at home to care for children cannot make any claims in their own right for property, maintenance or pension-sharing (although they may be able to make a claim in respect of and on account of the child(ren)
- Cohabiting partners cannot access their partner’s bank account if they die
Until there is a change in the law, co-habiting couples should document their financial arrangements, both during their relationship and in the event that they separate, in a ‘Co-habitation Agreement’ also known as a ‘Living Together Agreement’ or ‘Declaration of Trust’.
Arrangements covered in a Co-habitation Agreement could include:
- How much each party contributes to household bills such as mortgage payments, rent, utilities etc.
- Who owns what regarding expensive assets such as electronics, furniture or cars
- How joint debts or bank accounts are managed
- What percentage of a property each person owns
- Who owns and will take responsibility for any pets if you separate
What if Co-habitees don’t have a Co-habitation Agreement and split up?
If a cohabitating couple separate it may be that a property is owned by both parties or that one party is the sole owner of the property and the other party wants to claim an interest in it. Where there is a dispute as to what the respective parties are entitled to, it is open to either party to apply to the Court for an Order
- declaring what their respective interests in the property are, and
- an Order for sale to enable the parties to realise their interests in the property.
The Court will want to understand what the common interest was of the parties at the time the property was acquired, and how that has evolved (if at all) over time. There can be no clearer statement of intent as to common intention than a Declaration of Trust, or a Co-habitation Agreement, which has been properly drafted and entered into.
Where children are involved it may be that, irrespective of what the parties’ respective interests in the property are, it is necessary to make an application to the Court to ensure that the children’s best interests are observed, and that they are adequately housed.
Disputes could be dealt with at mediation or through the Collaborative process, without recourse to the traditional approach of matters being negotiated through correspondence and / or through litigation through the Courts.
If you need advice about Cohabitation Agreements or proceedings, our cohabitation agreement solicitors in Reading and Henley have the specialist knowledge to deliver expert advice and help you take the next steps to protect your interests.