Cohabitation

The expression “common law husband and wife” is often misused and misunderstood. No matter how many years a couple have lived together, under current law they do not acquire rights over each other’s savings, income, or pension provision, even if they have children. This contrasts sharply with the entitlements and claims available to spouses on divorce, where claims may extend to all assets, potentially including those acquired before the marriage.

In the absence of an ‘automatic’ legal framework for financial arrangements, and to help avoid a complicated and costly dispute later on, a couple can enter into a “Cohabitation Agreement” at any time, setting out their intentions for how assets will be dealt with if they separate.

Having such an agreement, and possibly a Declaration of Trust, can be particularly important when buying a property in joint names, as unequal financial contributions towards the purchase price are often not properly recorded. This can result in an unfair division of equity if the relationship breaks down. Likewise, if a property is purchased in only one partner’s name, it may still be important to recognise a share for the other partner – for example, where they are raising children and unable to contribute financially in the same way.

We can explain the difference between holding property as “joint tenants” or “tenants in common,” advise on practical matters such as whether joint accounts should require one or both signatures, and signpost you to our probate department so you can prepare a will that reflects your wishes. This is particularly important because, without a will, surviving partners do not have the same claims to assets as a widow or widower would if the estate falls into intestacy.

We recommend an initial one-off appointment to discuss all options either before, or shortly after, partners start living together, or before purchasing a property together. This small step could save thousands of pounds if the relationship breaks down and disputes over equity arise. We offer a reduced-rate fixed fee appointment for all new clients. For all new family enquiries, please contact our family department on 01328 863231 in the first instance.