Breaking up is very hard to do...
...goes the old song. As family lawyers know, when confronted with clients who are experiencing the breakdown of a relationship with spouse or partner, financial, as well as emotional, issues have to be dealt with and these can be, indeed, very hard to deal with. This is particularly the case with co-habitees, who form the largest proportion of separating couples.
People often refer to themselves as being in a "common law marriage" This term is a myth, however, and, in law there is no such thing. Matrimonial law governs married couples who divorce but co-habiting couples are not covered by the same legislation. Thus there are no statutory "matrimonial home" rights and individuals have to prove rights under property law.
If a co-habiting couple own a property jointly, it is usually straightforward to determine respective rights and thus shares in the property. There may simply be a 50/50 share of the equity in the property, although different proportions may have been laid down in a Declaration of Trust, prepared when the couple bought the property. As a result, the issue is simply, can one afford to "buy out" the other’s share, or will the property have to be sold so that the net proceeds of sale can be divided between the parties?
If, however, a property is in one person’s sole name, the situation is much less clear. In order to claim a share of the property, the non-owning partner would have to show either that there was a common intention between the parties that the property was purchased as a home for both of them and that both were entitled to a share, or that by some action or contribution, the non-owning partner had acquired a financial interest in the property. This can be a complicated area of law and expert legal advice is needed to advise on, and assert, an individual’s rights.
Co-habitation Agreements can help to clarify various points when a relationship is started. In addition, legal advice on wills (where co-habitees have no automatic rights, unlike married couples) and issues affecting any children of the relationship is essential.
For more information please contact Doreen Freear or Katherine Syles-Grime of the Family Department, Dellapina Law, Caledonian House, Tatton Street, Knutsford WA16 6AG, Tel 01565 634100 or e-mail family@dellapina.co.uk for a Free Initial Consultation.
