Cohabiting Couples in the UK – Jointly owned property

Unlike married couples, cohabiting partners in England and Wales do not have a legal duty to support each other financially should the relationship end, nor do they have an automatic right to each other’s pensions or inheritance, unless specified in a will. So, cohabiting partner’s claims against each other are limited to claims against real property, whether owned jointly or in one person’s sole name.

Cohabiting couples hold a property on trust, the purpose of which is most commonly for use as the “family home “. The general principle is that “equity will follow the law”. This means that the legal owners of the property will be considered the sole beneficiaries of the trust.

If the relationship ends, the purpose of the trust is defeated. In those circumstances, one party may wish to realise their interest in the property. If the property is owned as joint tenants, or tenants in common in equal shares, then each party is entitled to 50% of the property if it is sold. If the ownership is recorded in a declaration of trust, then the terms of that trust will be decisive. It is important to note that in these cases, any unequal contributions to the property at the outset (such as payments for the deposit or stamp duty) will not be reimbursed.

If one party wishes to argue that their share in the property should be greater than 50% the burden is on them to evidence, why the Court should depart from the general principle. Amongst the factors the Court would consider, the most common is the intention of the parties throughout the entire course of the relationship.

These arguments are complex, expensive to run, and often difficult to prove. However, there are some steps that you can take to mitigate (or eliminate) the possibility of costly litigation such as:

• Preparing a cohabitation agreement governing what will happen to the property (and other assets if relevant) when the relationship will end.

• Preparing a declaration of trust at the point at which the property was purchased, setting out each party’s share in the property if it is ever to be sold or otherwise disposed of.

Here at Lawson West, we have a team of dedicated family solicitors who can assist you. Contact us for more information, or for a no obligation initial discussion about your circumstances.

If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively complete the free Contact Us form and we will get in touch as soon as possible.

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