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 separate, that 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 etc, then on separation, it would not be the other parties obligation to make sure that you can manage.
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 straight forward 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 cohabitation 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.
