Cohabitation
Are you and your partner planning to move in together or have you already done so?
Have you thought about the possible financial implications in the event that the relationship does not work out as you had hoped?
People often believe that the phrase “common law husband and wife” will give them the same legal rights as a married couple. They are wrong. Matrimonial legislation does not apply to couples who live together no matter how long the relationship has lasted.
Couples often ask questions about their entitlement to claim from their former partner when it is too late. The position is particularly difficult if one of them already had their own property at the start of the relationship and the other one moves in. The new partner will only have a claim to that property if there is evidence of a “common intention of ownership”
Usually, the parties will only be entitled to take the assets that they brought into the relationship no matter what financial contributions have been made to the household bills. If the property is not purchased in joint names or no agreement is made as to how the property is to be split, then you may have no legal right to claim a share. On the few occasions that any right may exist it is often formed from complicated Land and Trust Law, leading to complex litigation. This is a very expensive and risky exercise.
So What Can You Do?
Couples can enter into a co-habitation agreement to help determine how your financial affairs and property will be shared out in the event that the relationship does not work out. An agreement helps to define the common intention of a couple but must be properly drafted to ensure that it is binding.
An agreement can be signed at any time during the relationship, although it is preferable to settle matters early on when the relationship begins. More importantly, the agreement should be signed before couples purchase a property together or before either of them part with substantial capital.
Problems can arise in any relationship so we are urging couples to think about the future now, rather than risk the possibility of complex and stressful court proceedings with a less favourable outcome later on.
Is It Too Late?
If you and your partner have already moved in together and you are unsure as to whether or not your position is adequately protected then please consult us now. It may not be too late to draw up an agreement and we can also give you the best possible advice as to how to protect your interests for the future
For those couples who have sadly reached a point where the relationship has or is about to break down, then we can assess your current financial circumstances and try to ensure the best possible outcome for you.
Our Staff
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| Jane Gale |