Unmarried Couples Legal Rights When Living Together

If you are considering moving in with your partner and are not married, you are not alone. Understanding unmarried couples legal rights is crucial, as approximately 1 in 5 families in the UK of opposite-sex couples are unmarried.

If one of you owns the property you will be moving into, it is important to understand the implications. The same applies if you are buying a property together but contributing different amounts towards the deposit or monthly payments.

The Myth of Common-Law Marriage

You may have heard about common-law husband/wife/partner – this is a myth. In a relationship breakdown, the law treats unmarried couples differently from married couples or those who are in civil partnerships.

Challenges for the Non-Owning Partner

Most legal issues occur when a relationship ends, and only one person owns the property. An agreement that sets out who owns what is known as an express trust. If it is in writing this can help determine what you had agreed at the time.

However, most people do not set out what they have agreed in writing. While the relationship is ongoing, most do not see a need to. If this is the case, the partner who does not own the property will need to prove one of the following:

• Financial Contribution: They contributed financially or in kind to the property purchase, and there was a common intention to share ownership based on these contributions.
• Common Intention and Detriment: It was understood that the non-owning partner had an interest in the property, and they acted to their detriment based on this understanding.
• Reliance and Detriment: The owning partner led the non-owner to believe they had an interest in the property, causing the non-owner to act to their detriment.

It is very difficult to establish an interest in a property and there is nothing in writing. This is especially challenging for long-term couples, as it relies on evidence like bank statements or text/WhatsApp/email correspondence to show their intentions.

Importance of Legal Advice and Written Agreements

Before a partner moves in, it is important to take independent legal advice about any claims the non-owning partner may have. It is also essential to set out any agreements in writing. You can learn more about cohabitation rights from the Law Society. If the non-owner will contribute towards the outgoings, will this include only bills excluding the mortgage or insurance? Does this imply they are covering expenses they would have incurred regardless, such as if they were privately renting?

Options for Protecting Your Interests

Declaration of Trust: If you are purchasing a property jointly and contributing unequal amounts towards the deposit or purchase price, you should consider a Declaration of Trust. This document will set out your individual contributions. It will also confirm how the net proceeds of sale will be distributed if the property is sold. This includes deductions for any mortgage and costs of sale, such as estate agent or conveyancing fees.

Cohabitation Agreement: Another option is a cohabitation agreement. This will outline the initial contributions. It will also specify whether outgoings will be paid equally or based on those contributions. If your partner does not own the property with you, this can set out what payments they will pay when they are living with you, and what (if any) financial provision they will receive in the event of your relationship ending.

Understanding unmarried couples legal rights before moving in together can prevent future stress and financial disputes. Formalising financial and property arrangements with a cohabitation agreement or Declaration of Trust can help protect both partners. Obtaining legal advice and drafting clear agreements tailored to your circumstances will ensure both parties are properly protected.

For tailored legal advice on cohabitation and protecting your financial interests, contact our Family Law department today. Our experienced team can help you draft agreements that safeguard your rights and provide peace of mind. Get in touch now to discuss your situation.