There is no such thing as “common law marriage”. The law for unmarried couples who live together can be confusing and upsetting upon separation. Unmarried, cohabiting couples do not have the same rights as married couples when it comes to personal finances, assets and property. In the event of a relationship breakdown, cohabiting couples do not have automatic rights to their partner’s property or money.
The Trusts of Land and Appointment of Trustees Act (TOLATA) 1996 is the law relied upon when an unmarried couple separates, and a dispute about ownership of property or land arises. A TOLATA claim can be made by a party when they cannot agree on the ownership of the property or land and what should happen to it. The family home is often the largest asset a couple owns and can have significant sentimental and financial value. Therefore, it can become a point of contention when a couple separates. However, if a property or land is owned by just one party, the other may be left without any legal claim against it. They could be made homeless overnight, which can be worrying and upsetting, especially if there are young children involved. So, what can be done to avoid disputes or provide protection in these situations?
Cohabitation Agreements
A cohabitation agreement is a written document drawn up between an unmarried couple who are living together specifying the ownership of property, finances, capital and what will happen in the event of a relationship breakdown.
Cohabitation agreements tend to be more comprehensive than a simple Declaration of Trust and they can regulate what will happen should the relationship break down. They can be drawn up quite quickly and they can cover a whole host of things like day-to-day matters, responsibility for paying the household outgoings, pets, vehicles, goods within the property and how the costs of repairs or improvements to the property are to be dealt with.
Declaration of Trust
A Declaration of Trust is a formal legal document that confirms the proportions in which a property is shared between an unmarried couple or more than two people who have purchased a property and are living in it together, such as a group of friends or family members. It also documents how the property should be split and equity divided should the relationship break down. It does not include as much as a cohabitation agreement, which may be the preferred option for an unmarried couple.
Schedule 1 Claim
Schedule 1 to the Children Act 1989 can help those bringing up children after separation where they are left disadvantaged compared with the other parent’s higher resources and standard of living. Provision can cover housing, equipping the home, lump sums for one-off items like cars, educational costs and additional maintenance where the other parent is a high earner, normally earning over £3000 per week.
If you are worried about your personal circumstances and would like help to discuss whether one of the above may be right for you, please contact our office, Tel: 01253 824216 or attend one of our free legal clinics for further advice.