Understanding the Legal Differences Between Cohabitation and Marriage
There is an assumption that if a couple has been together for a long time and ultimately separates, they share the same legal protections as a married couple. This used to be referred to as a ‘common in law wife, or common in law husband’.
This is not the case, and it can have potentially devastating consequences for one of the couple on separation. Many cohabiting couples are in a romantic relationship, but not all. Friends, family, etc, often cohabit, particularly nowadays as a means to purchase property and to get on the property ladder.
Cohabiting couples have no rights to continuing financial support on separation. So, if during the relationship you agreed jointly that one of you would only work part-time, and run the household, and have a lower income, then on separation, it would not be the other party’s obligation to make sure that you can manage.
You can read more about the rights that cohabiting couples have in this blog post.
Children and Cohabitation: What You Need to Know About Parental Obligations
If there are children, then the rules are different, but only so far as the parents’ obligations to the children are concerned, not to each other. Further advice can be given by our expert family law team if this is needed.
Why a Cohabitation Agreement is Crucial When Buying Property Together
The main asset cohabiting couples usually have on separation is the house. We recommend that the parties consider entering into a cohabitation agreement on purchase of any property, as this can set out quite clearly what will happen in the event of separation. This will protect the party who may have paid more of a deposit than the other, or the one who may be paying a greater proportion of the bills, due to having a higher income.
The law that covers this type of situation is civil, not family, and it applies to all cohabiting couples, whether in a romantic relationship or not.
Unless it is documented quite clearly when purchasing a house together how the ownership is held, and what the ultimate division of the sale proceeds will be, then the starting point would be a straightforward 50-50 division if the house is in joint names, regardless of who put what into the house. If the house is in one of the parties’ sole names, then the starting point would be that the entirety of the sale proceeds would go to them, regardless of whether the other party paid for home improvements and increased the value of the house. Whilst you can attempt to prove this, and establish an interest, it can be time-consuming and costly through the courts.
This is why it is so essential to get legal advice before purchasing a house together. This advice can also include estate planning. You may wish to ensure that the house, or your share of the house. is automatically transferred to the other party should anything happen to you, but again, this is not always the case.
You can obtain specialist advice from Prosperity Law in relation to setting up a cohabitation agreement and the purchasing of joint property, or estate planning, to ensure that your interest is protected.
To speak to Prosperity Law’s Family solicitors, email judith.obrien@prosperitylaw.com or give us a call to arrange a confidential discussion on 0161 464 9706. You can also fill out the form below.
About the Author
Judith O’Brien — Partner, Family Law
Judith O’Brien is a Partner in the Family Law team at Prosperity Law and a member of Resolution, the organisation committed to a non-confrontational approach to resolving family matters, whether financial or child-related. She holds the Law Society’s Advanced Family Law Panel qualification, recognising specialist expertise in both children law and financial matters arising from relationship breakdown.
With over 30 years’ experience in family law, Judith advises clients on cohabitation agreements, separation agreements, divorce, financial settlements, pre-nuptial and post-nuptial agreements, and children law matters including contact arrangements, residence, and school decisions.
Solicitor, admitted 1997 | SRA ID: 176870
