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"Living together advice? A few tips for cohabitees" by Tracey O'Dwyer.
24 March 2010

Marriage rates have hit an all time low, with the number of marriages per head of population at its lowest since records began in 1862. Without looking at  the social, economic and other reasons why this might be the case, it is safe to say that it is not because there are less relationships formed, rather, people are opting for a more informal basis of setting up home together.

In family law an unmarried couple living together is termed ‘cohabitation’. If the cohabitation breaks down, the same property rules apply, whether the individuals were lovers, friends or family members. Very few people, if asked, would anticipate that, as a result, they could become embroiled in bitter, costly and long running litigation, but unfortunately this is all too often the case.

Tracey O’Dwyer of Tony Roe Solicitors says, “As family lawyers we find ourselves going back in time to find out what was intended by the couple. In fact the answer may often be that these thoughts were simply not in people’s heads as they had not considered that things could turn sour, or that a day would arrive when they could not sort this out between themselves.”

A little thought now, and advice from a specialist solicitor, could well ensure that, if the worst were to happen, there is a clear document setting out what was intended and how the joint property ownership, and other issues, should be dealt with. If you still think this could never happen to you, Tracey O’Dwyer adds, “Sometimes this unfortunate chain of events comes about through no fault or action of either party, but because of debt, or one party has died or is otherwise unable to voice their own wishes. At that point third parties may become involved to fight for what they see as one person’s interests, or indeed their own.

So what can be done? A good conveyancing solicitor should be able to advise you how property can be legally held, whether as joint tenants or tenants in common, and also assist you in preparing a Declaration of Trust which can set out unequal shares of ownership. This is particularly useful if one person has invested a greater amount in the property, perhaps because they owned a property before. If care is not taken at this stage you may well find that if there is a future dispute, the equity in the property may be split 50/50 regardless of whether one person contributed a far greater amount. Also ensure that you have a Will drawn up by a specialist solicitor.

However, underpinning both of these, and to assist in additional or unforeseen circumstances, a Cohabitation Deed or Living Together Agreement can be worth its weight in gold. Such a document can deal with issues such as the following:

1. Who will pay what, in terms of the mortgage and other household outgoings.

2. Any circumstances that will re-apportion the shares of ownership, and how will this be dealt with.

3. Whether one person gets priority to buy the other out in the event of a need to sell, and how would a price be agreed.

4. What should happen if one person is unwilling or unable to meet their obligations as agreed above, either through illness, accident, redundancy, death or simply falling out. Whether one person should receive eventual credit for any greater contribution as a result.

5. Who is intended to live at the property. This is particularly useful if non-couples have purchased a home together, and one person wishes to move in a partner. If someone else is permitted to move in, what effect does this have on financial obligations?

6. How will the items inside the property be divided if necessary, eg furniture, gifts, etc.

7. What effect would the birth of a child have on this Cohabitation Agreement. If one person is allowed to stay at the home, how will this affect things? You should also investigate tax issues if you are not resident at the home.

8. How will a sale be conducted in the event that one or both parties want a sale. Will both parties remain in the property after a split?

9. Who will pay for major improvements, and will there be credit in one person’s share if costs are over a certain amount.

10. Whether other issues should be included, such as joint bank accounts, or anything else that may be relevant to you.

Tracey concludes, “Our role is either dealing with such a living together agreement or, in the unfortunate event of relationship breakdown, its implications”.

 

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