Moving in with a partner is a big step. Whether you are renting somewhere together, buying your first home or one of you is moving into a property the other already owns, there are a few legal points worth thinking about.
One of the biggest misconceptions is that couples who have lived together for a certain amount of time become “common law” husband and wife.
That isn’t how the law works in England and Wales. You could have lived with your partner for many years, but that alone doesn’t give you the legal rights that come with marriage or a civil partnership.
Who Owns the Property?
If you are buying a home together, how you own it matters.
If you’re buying a property together, you’ll need to decide how you want to own it – either as joint tenants or tenants in common.
With joint tenants, you both own the property together rather than having individual shares. If one owner dies, their interest in the property normally passes automatically to the other owner.
Tenants in common is different. Each person owns a share of the property and those shares don’t necessarily have to be equal. This can be useful where, for example, one person has contributed considerably more towards the deposit.
Your share can also be left to somebody in your Will rather than automatically passing to the other owner.
It’s therefore worth discussing how the property will be owned at the point of purchase rather than simply assuming it won’t make much difference.
What if the House Is Only in One Person’s Name?
Things can become more complicated when a couple lives in a property legally owned by just one of them.
Simply living there doesn’t normally give the other partner an automatic share in the property.
That doesn’t mean their position is always straightforward, though. Disputes can arise where the non-owner has contributed towards the deposit, mortgage repayments or substantial improvements to the home.
Whether those contributions give somebody an interest in the property can depend heavily on what happened between the couple and what evidence is available.
This is one of the reasons it can be useful to consider the legal position before moving in rather than waiting until the relationship has broken down.
What Happens if You Separate?
For married couples, divorce law provides a framework through which finances and property can be dealt with.
There isn’t an equivalent process simply because an unmarried couple has lived together.
Property disputes between former cohabitants can instead involve property and trust law, including claims under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).
This can sometimes come as a surprise, particularly where a couple has been together for many years or has shared household expenses throughout the relationship.
Putting Things in Writing
Talking about what would happen if you separated might not be high on the list when you’re planning to move in together. However, having things properly recorded can prevent uncertainty later.
A cohabitation agreement can set out how you intend to deal with matters such as the property, mortgage or rent, household bills and other financial arrangements.
If you’re buying together but contributing different amounts, you may also want advice about recording your respective interests in the property.
None of this means expecting a relationship to fail. It’s simply a way of making sure you both know where you stand.
Know Where You Stand Before Moving In
Cohabiting couples don’t automatically acquire the same rights as married couples, and the position can be particularly important when a property is involved.
If you’re about to buy a home together, move into your partner’s property or already live together and aren’t sure where you stand, Lund Bennett Law can advise you on your position and the options available.