David Boyle, head of the Ford Simey Family team, poses a sensitive query about when cohabitants purchase a property.

In the UK today, more than two million people have chosen not to marry but they have committed their relationship to the extent of purchasing property together.

Many think that if things go wrong, the Law will automatically protect their perceived rights; that their contributions to the purchase or improvement of a property will be reflected in a fair outcome if a dispute should arise. Not necessarily so!

Whilst married couples can expect the Law to provide a fair solution based on contributions, needs and the length of their marriage, there is no similar formula to be applied when cohabiting couples separate. In fact quite different considerations may arise.

The Law may in some cases treat unmarried partners as though they were arm’s length business partners who embarked on a joint venture. Putting all your salary into paying the bills and decorating will not necessarily give you a share in a property owned by your partner. Surprisingly, the fact that you may have children together may not make that much difference either.

Whilst a property is the most valuable asset held by most people in their lifetime, rarely is much thought given to the question of how it will be divided up if the relationship ends. Understandably, at the outset, the last thing on your mind is the prospect of breaking up and there may be much more pressing issues to consider such as the design of the kitchen and the finish of the units!

There is no automatic statutory protection for the status of a non-owning unmarried partner, even in cases where a sizeable amount of money has been contributed. In the absence of a recorded agreement, such as a Declaration of Trust, it may be difficult to establish your entitlement. If you decide to fight your corner, it is likely to involve a costly and time-consuming legal process.

The Law Commission has recommended legislation to address these issues but the Government has no timetable to implement changes at the present time.

It is therefore advantageous for both cohabitants to seek advice about these issues when buying property together. Ask your solicitor about a Declaration of Trust or terms of ownership in a Cohabitation Agreement. Such a document can go a long way to resolving future conflict and heartache. Having such an agreement will not tempt the worst to happen, just as making a Will won’t kill you. An informed appreciation of what could happen backed by a legal document will provide peace of mind and perhaps lead to a more secure and happier relationship.

David Boyle can be contacted on 01395 272241 or by email: dpb@fordsimey.co.uk.

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