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Print this pageCohabitees

I have to admit to a pet hate – the general perception about ‘common law’ wives or husbands. It is not unusual for people to think that once you have lived with someone for a period of time (six months, two years etc) you acquire ‘rights’ or an interest in the property in which you live. But you do not. People who believe otherwise may unfortunately be in for a nasty shock if the relationship ends.

If you are unmarried and you break up with your partner, you cannot use the flexible divorce law to sort out disputes in relation to the division of assets. More and more people are choosing to live together rather than get married, yet the mechanism for sorting out disputes is unclear and can lead to bitter arguments. The law which states how property should be divided when unmarried co-owners separate is uncertain at the moment, as the Supreme Court is currently considering a case (Kernott -v- Jones) which may change the current approach. Generally the courts have looked at property interests strictly. In the Kernott case, the Court of Appeal stated that the sale proceeds of the property should be divided equally as the house was owned jointly, even though Miss Jones had paid all of the outgoings - including the mortgage - since the separation which took place in 1993. Miss Jones is now challenging this decision in the Supreme Court, and we are currently waiting for the judgment.

Some judges have tried to decide disputes in a fair way to avoid an unpalatable result for one party. This has meant uncertainty. It is understandably difficult for lawyers to give proper advice to clients in these circumstances.

So, if you are thinking of buying a property jointly with your unmarried partner, what should you do? To avoid future acrimony it is very important at the outset to discuss carefully how the property should be owned. Take detailed legal advice from your solicitor when buying. Also, consider entering into a cohabitation agreement which sets out each other’s financial or other responsibilities.

Find out how we can help you

For further advice on cohabitees please contact Jane Anderson on 01603 625231, or email jmanderson@cozens-hardy.com

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