How to avoid losing your home when you separate
In the early stages romance and moving in with your partner you may give little or no thought to the financial implications of separation.
The majority of couples are deciding to live together and not marry. Little appreciation is given to the practical effects of this and individuals often don’t take away the contributions they put in. The newspapers are full of stories of discontented property owners having to pay off partners having given little thought to possible legal entitlements at the beginning of a relationship.
The idea of separation may never enter your head or you might simply think that your home will remain yours if you separate. However, over a period of time your partner may develop rights over your home.
If you are buying a house with your partner you may be contributing significantly more to the deposit. Over time your contributions, mortgage payments or meeting the costs of improvements may make you believe that your share of any sale proceeds is greater still.
However, your partner who has not contributed, can over a period of time, whilst not legally owning it, acquire an interest your home and on sale you may have to pay them off.
Parents who may have contributed substantially to a deposit or gifted a property to their child may be disappointed to find out that their hard earned capital, and their children’s inheritance has been lost by a failure to consider the implications of separation.
Whilst the concept of a common law husband or wife does not exist in law and the rights of cohabiting couples vary significantly to those of married couples, non-owning partners can acquire rights.
Fortunately, whilst successive governments have decided not to clarify the law in relation to cohabiting couples, there are ways in which you can help to protect your interest or share in your home.
A cohabitation agreement or living together agreement is a useful way of protecting your interests; there is a cost involved but it is considerably less than potential costs of a dispute or losing your home if you were to separate. It can also protect non-owning partners who may have contributed in other ways. Overall they can strengthen a relationship.
For clear and practical advice which will give you peace of mind about Living Together Agreements of Cohabitation Agreements contact James Belderbos of Belderbos Solicitors on 01572 490 660.
