Surrey

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1500" height="1051" src="https://surrey.muddystilettos.co.uk/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay.jpg" alt="" class="wp-image-41508" srcset="https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay.jpg 1500w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay-800x561.jpg 800w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay-1000x701.jpg 1000w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay-400x280.jpg 400w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay-768x538.jpg 768w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/couple-home-moving-pixabay-749x525.jpg 749w" sizes="(max-width: 1500px) 100vw, 1500px" /></figure>







More and more couples in the UK are choosing to cohabit &#8211; aka live together unmarried &#8211; than ever before. In the past decade, the number of cohabiting couples on the UK has grown by almost 23%, according to recent ONS survey. And yet, living together without being married actually means that you have very few rights when it comes to finances, property and children.



In England and Wales, the concept of a common law husband or wife is in fact a misconception. The law of England and Wales does not recognise people living together as being in a legal relationship &#8211; which means that unmarried couples are therefore exposed to huge risks if the relationship breaks down.&nbsp;



Thankfully, we&#8217;ve tapped up top family lawyer <a href="https://www.keystonelaw.com/lawyers/claire-oflinn" target="_blank" rel="noreferrer noopener">Claire O&#8217;Flinn</a> for some words of wisdom, on what what unmarried couples can do to protect themselves.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="1500" height="1001" src="https://surrey.muddystilettos.co.uk/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere.jpg" alt="" class="wp-image-41527" srcset="https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere.jpg 1500w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere-800x534.jpg 800w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere-1000x667.jpg 1000w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere-400x267.jpg 400w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere-768x513.jpg 768w, https://dev.muddystilettos.co.uk/surrey/wp-content/uploads/sites/7/2022/08/writing-hand-pen-contract-pxhere-787x525.jpg 787w" sizes="(max-width: 1500px) 100vw, 1500px" /></figure>



The prenup, minus the nuptials



Cohabitation agreements are sometimes referred to as living together agreements and essentially they are like prenuptial agreements but without the wedding, the dress and the cake. You may also hear them called “no-nups”. These agreements set out who owns what and in what proportion and gives couples the freedom to set out how they intend to split their property and assets should the relationship end. They can also be used in a more positive way to record how the relationship will work, such as who will pay the mortgage, pay for the holidays, pay for the refurbishment or renovation of the property, whether they intend to take out life insurance or to make a will.



The money issue



Many people chose to keep their banking arrangements separate from their partner but this is often because it&#8217;s easy, or just habit, rather than an actual informed decision.&nbsp;



If you have separate accounts then, yes, you are only accountable to yourself &#8211; and your partner has no access to it. But if one partner dies, the other has no access or entitlement to the account.&nbsp; Any balance will be the property of your partner’s estate.&nbsp;&nbsp;



If you have joint account then regardless of who paid into the account, you both have the ability to access it.&nbsp;If your relationship ends and you cannot agree how to divide the account, then a court might have to become involved.&nbsp; However, on death of a partner, the survivor becomes entitled to the balance (subject to calculating the vale of the estate of the deceased partner).



For some people, they chose both; a joint savings account and individual current accounts but this is a personal decision, unique to each couple.



Debts



The important thing to remember in cohabiting relationships is that while you are liable for all debts which are in your own name you are not liable for any debts which are just in your partner&#8217;s name.



However, with joint debts, there is a risk that you may be responsible for the whole of debt regardless of whether it is in joint names and for other debts for which you have &#8216;joint and several&#8217; legal responsibility.



If your partner has a debt for which you have acted as guarantor, you will also be held legally responsible for paying it.



Partners with a history of debt often convince their new partner to enter into joint loans, joint credit cards or joint financial ventures with them, often leaving the unsuspecting partner with the liability at the end of a relationship.&nbsp; Think carefully before entering into any financial relationship with your partner and always take advice if you are unsure.



Wills



If you die without leaving a will (that is, to die intestate), there are very strict rules governing who gets what and, once again, unmarried couples are not recognised under law. The only way for an unmarried partner to inherit is under a will; remember that the concept of common law husband or wife does not exist and so it should not be left to chance.



If you inherit money or property from an unmarried partner, you are not exempt from paying inheritance tax, as married couples are which highlights another advantage to tax planning when you prepare your Will.



Buying property together



Care should also be taken when unmarried couples buy a property together, either as a home or an investment property.



Imagine this scenario, you have survived a divorce and meet a fantastic new partner.&nbsp; You decide not to marry but to buy pool your respected pennies into a new property – maybe it’s a new home, maybe it’s a little place on the coast for weekends. &nbsp;If that relationships turns sour, getting your money out of that property (either on a sale or your partner buys you out) will be fair easier if you have a document in place determining the terms.&nbsp; You might have been burned in your divorce but don’t let it happen again.&nbsp;



More often than not, a Declaration of Trust setting out who provided what towards the purchase price, and the proportions they each will get out upon sale, is highly advisable. A disagreement later about property ownership is best to be avoided.



Time and again family lawyers are asked to advise on the breakdown of a cohabiting relationship and so often the cost and heartache of sorting the mess out could have been avoided by basic relationship planning by family lawyers when the relationship was healthy. Cohabitation agreements, Wills and Declarations of Trust may seem unnecessary when times are good but, like pre-nups, they can save acrimony and significant legal costs should the relationship turn bad.



<a rel="noreferrer noopener" href="https://www.keystonelaw.com/lawyers/claire-oflinn" target="_blank">keystonelaw.com</a>



<hr class="wp-block-separator has-alpha-channel-opacity" />



Looking for other legal advice? Check out these features in our Legal section.



<ul><li><a rel="noreferrer noopener" href="https://www.keystonelaw.com/lawyers/claire-oflinn" target="_blank">Divorce and kids: how to ease the pain</a></li><li><a rel="noreferrer noopener" href="https://surrey.muddystilettos.co.uk/legal/toxic-relationships-domestic-violence/" target="_blank">Are you in a toxic relationship?</a></li><li><a rel="noreferrer noopener" href="https://surrey.muddystilettos.co.uk/legal/expert-advice-pensions-divorce/" target="_blank">Expert advice: pensions and divorce</a></li><li><a rel="noreferrer noopener" href="https://surrey.muddystilettos.co.uk/legal/no-fault-divorce-lawyers-opinion/" target="_blank">No fault divorce: the facts</a></li></ul>

Cohabitation and the law

You may also like