How Can I Protect My Deposit If I Break Up with My Partner? 

For unmarried couples buying a property together, protecting individual contributions is essential. Cohabiting couples don’t have the same automatic legal protections as married couples, so taking specific legal steps at the time of purchase is the only way to safeguard your investment and ensure your intentions are enforceable. 

1. Purchase as Tenants in Common 

The most effective way to protect a deposit is by owning the property as Tenants in Common. Unlike a Joint Tenancy, where you both own the property equally as a single entity, Tenants in Common allows each buyer to own a defined, separate share. This share can precisely reflect what each person contributed to the deposit or mortgage payments. 

For a full breakdown of ownership options, see our guide on the best way to legally buy a house with another person. 

2. Create a Declaration of Trust 

While Tenants in Common provides the legal structure, a Declaration of Trust (or Deed of Trust) acts as the manual for how that structure works. For unmarried co-buyers, this document has become standard practice. It defines: 

• The ring-fence – exactly how much each person contributed to the deposit and a legal guarantee that this amount is returned to them first upon sale 

• Equity split – how any remaining profit or loss should be divided after deposits and costs are paid 

• The exit strategy – clear instructions on what happens if one partner wants to sell while the other wishes to stay, including how a buy-out price is calculated 

3. Consider a Cohabitation Agreement 

Many couples now pair their Declaration of Trust with a Cohabitation Agreement. While the Trust deals specifically with the property, a Cohabitation Agreement covers the wider picture, responsibility for utility bills, ownership of furniture or pets, and arrangements for joint bank accounts if you separate. 

4. Update your Wills 

Because Tenants in Common doesn’t include a Right of Survivorship, your share of the property won’t automatically pass to your partner if you die. Instead, it follows the instructions in your Will. Having an up-to-date Will is a vital part of the process, it protects both your partner and your investment. 

Final Thoughts 

Protecting individual contributions is vital when buying with a partner. Our conveyancing team at Setfords specialises in advising unmarried couples on Tenants in Common ownership and preparing bespoke Declarations of Trust to ensure your financial interests are secure. 

Buying with a partner? Get your free conveyancing quote today. 

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