Research shows that over half of unmarried couples living together separate before two years. Although the thought can be unpalatable, increasing numbers of couples are considering how to deal with their assets and liabilities on separation before they even move in together, by taking legal advice and entering into formal cohabitation agreements.
Challenor Gardiner Solicitors advise that this can significantly reduce stress and legal expenses in the event of separation.
The concept of ‘common law marriage’ is a popular myth.
Unfortunately for unmarried couples, the court does not have the power to make orders on separation that e.g.
one party pay the other ‘spousal’ maintenance or that a property should be transferred to a party on the basis of their non-financial contribution to the relationship.
(NB. the court has different powers if the couple have children and specialist legal advice should be sought if this is the case).
As a general rule, the assets of unmarried couples on separation will be divided according to who legally owns them.
For instance, a property held as “joint tenants” will be owned jointly and equally by both parties but a property held as “tenants in common” will be owned in predetermined shares which should be recorded at the time of the purchase.
Many couples will want their assets to be distributed between them in accordance with an alternative agreement.
Unless this agreement is recorded in a cohabitation agreement then it can be very difficult to prove.
A cohabitation agreement is a legally binding contract between the couple. Both parties should take independent legal advice and make full financial disclosure to each other to ensure that the contract will be upheld by the courts.
Challenor Gardiner’s specialist family law team has a wealth of experience preparing co-habitation agreements. We can advise you and prepare cohabitation agreements on your behalf.
■ Contact Challenor Gardiner on 01865 721 451 or visit our website at www.challenor-gardiner.co.uk.
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