Cohabitation

The main asset of most relationships is the family home, and how much interest each party have in this is usually determined by how the property is held between them.

There are three main ways that a property is usually held between two people, which are: joint tenants, tenants in common and by a deed of trust or other co-habitation agreement.

If they are Joint Tenants, then this means that both parties own the whole property and therefore on breakdown would usually be entitled to half of the value of the property. However, if one party were to pass away, then their interest in the property would automatically transfer to the other party (this is similar to the way a joint bank account usually operates)

As Tenants in Common both parties own separate shares of the home and, if one party were to pass away, their share would be inherited as per their will. If specific shares are not specified, they will be equal however it is possible to have a separate document or for the initial transfer document to state different proportions (eg 90% / 10%).

Deeds of Trust or Cohabitation Agreements are becoming more common in the modern age as they can expressly determine the ownership of any property or assets of the relationship in the event of a breakdown. Cohabitation agreements can be tailored to the specific needs, within reason, of a couple and as long as they are correctly prepared and executed, and both parties have had independent legal advice on the content and implications, they are legally binding contracts.

There are increased risks for a party who is cohabiting if they are not on the title of the property at the Land Registry or on any mortgage over the property as it can be difficult to prove a beneficial interest (ownership) in the property without either of these things. In this situation it would require the party who is not on the title to be able to prove they financially contributed to the property, or to prove that the other party had made clear their intention that the were entitled to the property. Simply being in a long relationship or cohabiting for a large period of time is not sufficient to prove this and neither is having children of the relationship.

Our team are here to help you resolve any cohabitation issues you may have, whether that be assisting with the breakdown of a cohabitation situation or helping a cohabiting couple to protect their assets in case of any future breakdown of relationship in the form of a cohabitation agreement agreed by the parties.