Unmarried and Buying a Home with your Partner? Cohabitation Agreements and Other Legal Structures to Consider
Buying a house or property together can be hugely exciting – and of course it should be. It is a big step both financially and for any relationship. However, if you are buying a home and are not married, you may want to consider what would happen if your partner was in an accident, or if the relationship broke down in the future. Would you benefit from a cohabitation agreement or any other type of protection or structure?
This question is also relevant even if you have been living together for 20 years or more. Many cohabiting couples misunderstand their legal position. They often assume that a long-term stable relationship provides automatic protection against any mishaps. For years, many referred to cohabitation as “common law spouses”, but contrary to popular belief, there’s no such thing as common law marriage in England and in Wales. This is why many people have chosen to create a cohabitation agreement or carefully choose their legal structure when buying a home.
Do unmarried couples have any legal rights when buying a home?
Many cohabiting couples assume that living together grants them similar rights to married couples. Unfortunately, as cohabitees, you have no automatic financial responsibility to each other, no right to share your partner’s assets or pensions, and no guaranteed claim to jointly purchased property without proper documentation. This is why cohabitation agreements and other legal options are on increasingly popular.
When property disputes arise, this leads to unexpected legal costs and lengthy battles that proper planning could prevent. If you have children together, then their needs should also be considered.
I am unmarried and buying a home with my partner. How can I protect my investment?
The good news is that there are ways to protect both partners and it’s imperative to have these discussions early on in the process. Understandably, every couple’s situation is unique, from financial contributions through to family circumstances and long-term goals.
When purchasing a property as a married or unmarried couple, you will be asked by your conveyancing solicitor to detail whether you wish to do this as Joint Tenants or Tenants in Common. The legal consequences of these are very different, so expert advice may be needed to ensure you choose the right one.
So, what are the key differences?
Joint Tenants
- This option is best for those who want equal ownership.
- You both have equal rights to the whole property and are not allocated specific shares.
- If you purchase a property as Joint Tenants, your legal and beneficial interest in the property would automatically pass to your partner in the event of your death, you cannot pass it onto anyone else in your will.
Tenants in Common
- This option is best for cohabiting couples with unequal contributions (e.g. one partner is paying significantly more of the deposit or mortgage repayments than the other) or if there are specific inheritance wishes
- As tenants in common you can own the property 50/50 or by any other percentage depending on what suits your circumstances. Alternatively, you can be tenants in common and have a separate document, called a Declaration of Trust, drawn up. This documents things in more detail, such as who has put in what value for the deposit, and then the percentages that each party will get out of any sale proceeds
- As a tenant in common you can dispose of your share to who you choose, such as children from a previous relationship, or to other family members.
- You can do this at any time – either by gift or sale, or within your will upon your passing.
It’s important to note, that If you don’t make a will, your share will pass according to intestacy rules, which may not align with your wishes and could leave your partner in a difficult position.
Do I need a Cohabitation Agreement?
Another document that greatly binds a cohabiting couple’s right to the property is a cohabitation agreement, also known as a ‘living together agreement’. This is similar to pre and postnuptial agreements which many married couples enter into.
The agreement covers elements such as ownership of property, share of the mortgage or rent you will pay, next of kin rights, how household bills will be dealt with, finances and more sensitive matters such as childcare and pets, both when you are living together and in the event you separate.
Examples of what is typically included in a cohabitation agreement, can be found in our article here.
Conclusion
Taking these steps now, while your relationship is strong, protects both of you and provides clarity and security for the future. It’s not about planning for failure; it’s about building a solid foundation together.
If you’re considering buying property with your partner, speak to a solicitor in Plymouth who specialises in cohabitation matters. They can help you understand your options, draft the necessary agreements, and ensure your interests are properly protected from the outset, be this by a cohabitation agreement or other legal structure.
How can GA Solicitors help?
At GA Solicitors in Plymouth, we provide comprehensive support for cohabiting couples buying property together. Our residential conveyancing lawyers in Plymouth bring a deep knowledge of the local property market and will advise on whether joint tenants or tenants in common best suits your circumstances.
Our family law team can draft tailored cohabitation agreements that protect both partners, while our wills, trusts and probate specialists can ensure your estate planning reflects your wishes and can also advise on inheritance tax considerations.
Arrange a confidential discussion with our team today by calling 01752 203500, or by emailing enquiries@GAsolicitors.com.
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