Living with a partner before marriage has become increasingly popular; whether buying a home together or one partner moving in with the other. Despite the increase in popularity the law in this area is heavily outdated and can often lead to unfair outcomes. Whilst matters of law do not often make for romantic dinner conversation, couples contemplating their living arrangements would be wise to discuss such happenings at an early stage.
Where a property is owned in the sole name of one partner, the starting presumption will be that no one else has a beneficial interest in the property. There are however a number of ways in which the non-owning partner can acquire a beneficial interest in the property; this is known in law as a ‘trust of land’.
Any future court action examining the partners beneficial interests will firstly be concerned with any arrangement or understanding between the partners to share the property. Evidence of discussions such as “this house is as much yours as it is mine” may be enough to persuade a court that there was an agreement between the parties.
As well as the above the court will also be concerned with any reliance placed on the said agreement to the detriment of the non-owning partner. Common examples of detriment brought before the court include renovation or mortgage payment contributions. But there are also cases where a trust of land has been found to exist even where there has been no direct financial contribution to the property.
There is perhaps some truth in the jocular idiom “what’s yours is mine and what’s mine is mine”. Property owners would be encouraged to make their ownership intentions clear at the outset of any cohabitation. The clearest way to do this is in the form of a cohabitation agreement; a legal document setting out the financial and other arrangements that will apply to the partners whilst they are living together and in the eventuality that they are not.
At Stephensons we are experienced in drafting cohabitation agreements tailored to your circumstances as well as advising on trusts of land disputes, contact our dispute resolution experts on 0161 696 6178 to find out how our team can assist you.
Another great two minute read, giving sage advise for those who find themselves sharing a home, making clear the potential pitfalls should things go wrong. In an age where there are more cases of new partners moving into an established home, cases can only be on the rise.