Cohabiting Couples Property Ownership Disputes

A cohabitation agreement is a legally binding contract for couples living together or planning to move in together.

Cohabitation agreements outline financial provisions, from property sale division to ownership of valuable assets and handling shared property in case of separation.

The agreement reduces uncertainty in shared living arrangements, and Myerson's Property Litigation solicitors specialise in drafting bespoke solutions for your unique needs.

A Declaration of Trust deals with property ownership and can be established before or after property acquisition.

Changes to ownership shares require a mutual agreement between joint tenants.

A Declaration of Trust document can be part of the property purchase agreement or can be drafted as a separate document.

For example, it can outline that person A receives a specific percentage of the sale proceeds while person B gets the rest.

Alternatively, it may allocate a fixed equity amount to one person, with the remaining shares determined by mutual agreement.

Our property ownership dispute lawyers can help set up a declaration of trust to ensure you are protected.

It is crucial to have a Will. For cohabiting families, Wills are imperative as intestacy rules don't recognise cohabitants or consider non-biological or non-adopted children.

If a cohabiting partner dies without a Will, the surviving partner typically won't inherit their estate, except for jointly owned property and named beneficiary policies.

Lack of a valid Will can lead to assets going to the deceased's biological family, potentially leaving the surviving partner with no entitlement, or requiring costly legal action.

Myerson Solicitors have expert Wills, Trusts, Probate and Contentious Probate lawyers who can help set up a Will or proceed with Will disputes.

A cohabitation agreement is a documented record of agreements between partners that covers several aspects of their shared life.

The cohabitation agreement will establish the conditions for cohabitation and outlines outcomes should the relationship end.

It covers property, division of sale proceeds, and potential financial support post-separation.

The primary objectives of a cohabitation agreement include:

• Defining daily living arrangements, such as bills and home ownership.
• Ensuring an amicable separation by providing details of individual responsibilities and entitlements should the relationship end.
• Specifying individual ownership of property at the beginning of the agreement.

The agreement encourages a fair financial organisation to prevent financial losses for either party if the relationship terminates.

The key difference between cohabitation and marriage is that marriage is a legally recognised union with specified legal rights and obligations.

On the other hand, cohabitation is a domestic partnership which does not receive the same legal status or protections.

To ensure the security of your property and finances, cohabitation agreements should be made prior to moving in together or as soon as possible after making the decision to become joint tenants.

It is best to establish the agreement while the relationship is harmonious to avoid potential property disputes later on.

A cohabitation agreement should include provisions relating to financial aspects, such as property division, expense sharing, and ownership of assets.

It can address support and maintenance, child custody and support, and a process for resolving disputes, such as alternative dispute resolution.

The agreement should not include illegal or unreasonable terms, personal lifestyle choices, or child custody terms that violate legal standards.

Consulting a legal professional is essential to create a valid and fair cohabitation agreement.

Contact Myerson Solicitors' Property Litigation lawyers today.

Cohabitants can protect their interests by taking the following steps:

• Cohabitation Agreement: Draft a legally binding agreement specifying property division, financial responsibilities, and support arrangements.
• Declaration of Trust: Create a document addressing property ownership and how proceeds will be split should the partners separate.
• Financial Clarity: Be transparent about financial contributions, shared assets, and expenses.
• Wills: Establish individual Wills to ensure assets are distributed as intended.
• Legal Advice: Seek legal counsel when creating agreements or addressing property ownership disputes.

Tenants in common is a legal term used to describe a form of property ownership where two or more individuals jointly own a property but have distinct, separate shares or interests in it.

The joint owners hold a specific percentage of the property, and these shares may not be equal.

When one co-owner passes away, their share can be passed on to their heirs through a will or according to intestacy laws.

The share division contrasts with joint tenancy, where co-owners have an equal and undivided interest in the entire property, and when one owner dies, their share automatically passes to the surviving joint owner.

Tenants in common allows for more flexibility and control over individual shares in the property.

If there is an express provision in the transfer document or in a Declaration of Trust, the parties will be bound by those terms unless they can establish:

• That the declaration was invalid or incorrect.
• There has been fraud, mistake, or undue influence.
• That there has been a subsequent variation.

This won't be easy, but in some cases, it may be possible.

If you think your circumstances may fit, please call Myerson Solicitors to discuss further.

Paying the mortgage or other household expenditure does not entitle you to a greater share of the equity.

You may, however, be entitled to compensation for the money you have spent by way of "equitable accounting". This allows the Court to make adjustments to the money received by each party, even where shares are fixed.

Included in equitable accounting can be payments towards the mortgage or, in some cases, improvements to the property or an obligation on one party in occupation to pay occupation rent to the other party post-separation.

If you have excluded your ex-partner from the property, then he may be entitled to ask you to pay rent for occupying the property and may insist on conditions for your continued occupation of the property.

It is possible for a person who is not the legal owner of a property but has made certain types of contribution towards it to acquire a financial interest in it.

However, this is a potentially complicated situation that would turn on each case's facts.

If you have children together, you may have extensive financial claims pursuant to Schedule 1 of the Children Act 1989.

These claims can cover various aspects, such as a housing claim, a lump sum claim, a claim for additional maintenance beyond Child Maintenance Service payments where applicable, and a request to cover your legal fees.

Housing claims are normally restricted to providing accommodation for you and your children whilst the children are under the age of 18 years or remain in full-time tertiary education.

If you are in this situation, then our experts will be able to assist you in relation to your TOLATA claim and Schedule 1 claim.