Cohabitation

Declarations of trust

Declarations of trust are useful when buying a property with a partner. They’re legally binding documents that set out the shares that each person holds in the property. They can also be known as deeds of trust or trust deeds. 

These deeds are not just used by partners. You can also use a declaration of trust when buying a property with a friend, family member, or anybody else who is not your spouse. 

A declaration of trust specifies what each person is contributing towards the purchase of the property and, as such, the share that each is entitled to if the property is sold or bought out by the other person. It can also detail how you’ll split the mortgage payments each month.

Declarations of trust are vital documents to protect your investment when purchasing a property, but drafting them can quickly get complex. Our solicitors can assist, simply get in touch today.

Cohabitation agreements

A cohabitation agreement is a legally binding document made between cohabiting partners. It sets out arrangements covering various scenarios for when you live together, if you separate, or if one partner becomes ill or dies.

It differs from a declaration of trust as it can go into more detail than just matters relating to a property purchase. Some of the aspects a cohabitation agreement can cover include:

• Finances
• Children
• Property

Cohabitation agreements don’t always refer to partners – you can also sign one with a friend, family member, or anybody else you live with. 

Beneficial ownership

If you are living with a partner who owns the property, but you do not own a share, you may still be entitled to the right to occupy or an interest in said property. This is known as beneficial ownership.

If you have made significant contributions to the mortgage, purchase cost, or home improvements, it is more likely that you may be entitled to beneficial ownership upon separation.

You may wish to sign an ‘express declaration of interest,’ a document between partners that declares each person’s interest in the property. 

Our solicitors are here to help you check whether you have beneficial ownership and what you may be entitled to. Please get in touch to get started. 

Cohabitation disputes

When sharing a property, whether with a partner, friend, or family member, disputes can unfortunately arise. This most commonly occurs when cohabiting partners decide to separate, and one person wishes to sell the property while the other doesn’t. 

These disputes can be minimised by ensuring that you set clear expectations from the outset. This can help each person know where they stand regarding their entitlements when the property is sold, and what happens if one person wants to sell while the other doesn’t.

If you are experiencing a dispute of this nature, our cohabitation solicitors are here to help. Please get in touch to discuss how we can assist you today. 

Wills

It’s a common misconception that cohabiting partners are ‘common law spouses’. In reality, if one partner dies whilst you are unmarried, the surviving partner has few rights without the relevant documents in place.

An important document to consider is a will. This sets out who you wish to inherit your estate (such as property, savings, possessions, or a business) upon your death. Without a will, it is unlikely that your unmarried partner will automatically inherit anything – this is the law of intestacy.

Our private client solicitors can help you draw up a legally binding will that ensures your estate is inherited by the people you wish – including a cohabiting partner. Get in touch to find out more. 

Joint tenants and tenants in common

When purchasing a property with another person, you will need to decide whether you are joint tenants or tenants in common. This doesn’t just apply to unmarried people; those who are married or in a civil partnership can also choose between the two options.

Joint tenants both own 100% of the property in equal shares. This option also comes with the right of survivorship, meaning if one person dies, the property will automatically be inherited by the other.

Tenants in common are joint owners, but each person may own a different share of the property. This can help unmarried partners protect their investments upon separation. However, it does not come with the right of survivorship, so writing a will detailing who you wish to inherit your share of the property is important. A declaration of trust is also crucial, as this will detail what happens to the property upon separation or sale. 

ToLATA claims

If you are separating without a declaration of trust and/or cohabitation agreement, you may be left wondering how you will decide upon the division of assets. The Trust of Land and Appointment of Trustees Act 1996 (ToLATA) is used by the courts to decide what share of a property that each person owns. The court can also enforce the property’s sale to release the shares. 

It’s vital to consult legal advice for this process. Please get in touch today. 

Schedule 1 applications

If you are a cohabiting couple with children, upon separation you can make a Schedule 1 claim for the other parent to provide financial provision. This can be a hugely complex area of law depending on your circumstances, so please contact us for expert legal advice.