Purchasing a property with your partner
Buying a home is likely to be the single largest investment that most of us will ever make within our lifetimes. With such a high level of investment, it stands to good reason that we should think about ways to protect our financial investment.
This is why more and more couples are gaining advice from expert family lawyers prior to purchasing a home with their partner. With the help of a family law practice, agreements can be produced, and these agreements allow each partner to clearly stipulate what they would like to happen to their property if they were to separate.
Let's get some common myths out of the way first
It's important to get some common myths out of the way first. Some couples may live together for many years, they may believe that they have accrued common law wife and husband status - but in reality, there is no such thing.
Instead unmarried couples should consider forming what is referred to as a Cohabitation Agreement.
This agreement can allow both partners to agree what should happen to their assets if they were to separate.
Does it matter if we purchase our property as joint tenants or tenants in common?
One of the most significant facts that your family lawyer will rely upon is whether the property was purchased as joint tenants, or as tenants in common.Some people rely on a quick Google search to understand the difference between the two terms.
Sometimes only the basic differences are pointed out, such as, if you were to purchase as joint-tenants and one partner was to die, the surviving partner would obtain all the rights to the property.
Also, the fact that if you were to purchase as tenants in common, you can pass your share of the house to whoever you choose within your will.Both these statements are indeed true, however, the differences between the two forms of ownership should be understood further. To assist you we have jotted down a more in-depth explanation of the main differences.
Joint tenants
If you were to purchase a property as joint tenants, then this means if you were to separate each partner could receive an equal share of the equity that's held within the property. This can sometimes be despite the fact that one partner may have paid for all of the deposit when purchasing the property.
Tenants in common
If you were to purchase the property as tenants in common, then you are able to stipulate what share of the property each partner owns.
This is an important decision which must be carefully considered, especially if one partner is providing the initial deposit for the property.
How can a family lawyer help?
It is strongly advised that each partner should carefully consider the drafting of an agreement. This agreement can set out what should happen to the property if you were to separate from your spouse.
If you are unmarried and are not planning to get married, then you may wish to consider forming what is called a Cohabitation Agreement. For couples planning on getting married, you may wish to consider forming a Prenuptial Agreement before you get married.
For couples who are already married, you can also obtain advice in relation to forming a Post-nuptial Agreement. For further family law advice why not get in contact with us today?
