We have listed a few examples of some of the key differences of entitlement between married and cohabiting couples on the breakdown of the relationship. Any references to married couples also includes couples who are in a civil partnership.

Maintenance for cohabitating couples

On the breakdown of a marriage, one spouse can be required to pay the other spousal maintenance. On separating as a cohabiting couple, there is no obligation to pay maintenance to the other party. This means that if one person has decided to give up work to look after children for example, they will not be entitled to maintenance.

A share of a pension can only be considered as part of divorce proceedings, therefore a cohabiting couple on separation will not be able to consider the possibility of a pension share.

If there are children from the relationship, child maintenance will be payable to the parent with whom the child/children lives, by the other parent. The amount to be paid is a percentage of the paying parent’s gross income (less 100% of pension contributions) and on the basic rate will be between 12%, 16% or 19% depending on whether the maintenance assessment is made for 1, 2 or 3 and more children respectively. A child maintenance assessment can be calculated online. There will be a deduction based on the number of nights that the child/children spend with the paying parent, and whether the paying parent has any other dependents living in their household.

Property and assets for cohabitating couples

When married, both spouses have a right to live in the family home for as long as the marriage continues whether it is owned in the sole name of one spouse or in joint names. On divorce, the non-owning spouse can acquire an interest in the family home, and or assets owned by the other spouse.

When cohabiting, there is no such right as specified above and the area of law is much more complicated. If the property is in joint names, there is a presumption that the property is held equally unless there is a deed of trust declaring that the property is held in unequal shares.

If the property is in the sole name of one partner, the non-owning partner can claim an interest in the property if they made financial contributions to the property including renovations and improvements and/or relied on promises that the house was ‘ours’.  If there is not a written agreement, the conduct of the partners will be highly relevant in ascertaining whether there was an agreement, or promise between them to share the property. Establishing what the agreement was, can involve lengthy and costly Court proceedings. There may also be tax consequences of a property transfer.

Where there are children, a non-owning parent may acquire a right to occupy the family home, or entitlement to a share of the sale proceeds, to rehouse the child/children although this will revert to the owning parent, upon the child/children reaching majority.

What happens if a cohabitating partner dies? 

If a spouse dies and does not have a Will, under the rules of intestacy the surviving spouse will receive all or some of the estate. Everything that passes to a surviving spouse on death does not have an Inheritance Tax liability.

If a cohabiting partner dies and does not have a Will, there is no automatic right that the estate will be left to the surviving partner. Inheritance Tax may be payable depending on the value of the estate.

What can cohabiting couples do to protect their interest?

1. If purchasing a property together consider purchasing the property in joint names.
2. If purchasing a property together and the couple are making unequal contributions consider creating a Deed of Trust to specify the respective interests that the parties have in the property.
3. Complete a Cohabitation agreement that will prescribe the arrangements for division of property and any childcare arrangements upon a separation.
4. Complete a Will.
5. If uncertain, seek independent legal advice.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances

This article was brought to you by Kathryn Coyle a family solicitor at Kidd Rapinet Solicitors Maidenhead.  You can speak to Kathryn or any of the family lawyers across our other offices in Aylesbury, Canary Wharf, Farnham, High Wycombe or Slough, using the form provided.  Please use the links provided to find more information on divorce or separation, child arrangements and other areas of family law.

These materials and content have been prepared for the benefit of their viewers/readers. They are intended for marketing purposes only and are of a general nature and do not constitute legal advice applicable to any particular facts or circumstances. Kidd Rapinet LLP and/or the author(s) accept no duty of care, responsibility or liability for any loss or damage which you or any third party may suffer as a result of any reliance or use by you or them of these marketing materials and content, except to the extent it is not legally possible to exclude such liability. If you require legal advice on your own situation, please contact us so we can discuss how we may assist.

The post Does common law marriage exist? Are people protected that live together? appeared first on Kidd Rapinet.

The Covid-19 lock-in has seen many people take the next step in their relationship at a much faster pace then they may have had planned simply because they do not want to be alone at this time and face lock-in away from each other. They now live and work together because they did not want to be apart and this time together may test the strength of their relationship. For some people, this may be a temporary measure only but for others, it is the start of a new future together.

However, it may be that being fast tracked to take relationship to the next stage means you’ve not considered any legal implications of living together.

If you are moving into your partner’s property then you will not automatically have any financial interest in the property but even if you are not married legal rights may arise as a consequence. The partner who is not the legal owner of the property may still be able to establish a legal interest in certain circumstances e.g. the length of the cohabitation, improvements to the property and the intentions of the parties and a few more. If at some point in the future you broke up with your partner then the onus would be on the non-owning party to prove that they have a financial entitlement in respect of the property.

Kidd Rapinet advise couples that communication is key even if you have already moved in together during this lockdown. This will minimise misunderstandings further down the line as to the legal and financial situation.  So if you intend on contributing to the mortgage and/or household bills then talk about it. Try to be very clear from the start what financial contributions to running the property will be made and if they are intended to provide a legal interest in the property.

You may wish to consider preparing a Cohabitation Agreement with the assistance of a specialist family lawyer as this provides clarity. This can, amongst other things, set out how the mortgage repayments and utility bills will be paid, how any joint bank account will run, responsibility for structural repairs and renovations, and what will happen to the property should there be a breakdown in the relationship.

The Cohabitation Agreement can cover a variety of issues, such as:

• Ownership of assets held in sole names prior to the relationship
• How you pay rent/mortgage, utilities, and other outgoings
• Ownership of assets acquired during the relationship
• Ownership of gifts received during the relationship
• Liability for debts, such as overdraft, credit cards, and bank loans, for example
• Ownership of vehicles
• What will happen if you separate

It would not be appropriate for the same firm of solicitors to advise both parties about the content and effect of the Agreement, due to potential conflicts of interests, so each of you should obtain separate legal advice before signing the Agreement.

If you would like to discuss a cohabitation agreement or any other family law issue, please speak to Reshma Sunnassee at rsunnassee@kiddrapinet.co.uk or call 01296 509985.  At this current time, we can no longer offer a face-to-face service at our offices however appointments can be carried out via phone, email and video conferencing.

The post Living together during Covid-19 appeared first on Kidd Rapinet.