Buying a property with your partner, especially if it's your first purchase, is a monumental milestone in your relationship. It's a step towards independence and a future together.

It should be a time full of excitement and happiness because you may be moving onto the property ladder and possibly away from rented properties.

However, there could be a niggling feeling of doubt about purchasing this property.

That doubt could be due to concerns over what would happen to this property if you split.

This is a fundamental question to consider if you are an unmarried couple.

That's because there are legal documents and contracts you can sign to help protect your financial position.

We will explain more about these agreements within this article. It’s also important to note, these agreements can still be entered into after the purchase of property as well.

Why must unmarried couples take extra steps to protect their financial interests?

A vast body of law in England and Wales protects married couples during a divorce.

Therefore, a clearly set-out framework and many laws within England and Wales help divorce lawyers and family courts navigate their clients through the divorce process.

The separation process, however, is very different if you are unmarried.

Therefore, if you are unmarried and cohabiting with your partner, things can get much more complex and the waters much more muddied.

What we mean by that statement is that a couple can live together, believing they have certain rights similar to those of a married couple. However, unmarried couples do not have the same legal rights as married couples.

The crucial need for legal agreements

Unmarried couples should voluntarily enter into legal agreements, such as “deeds of trust” and “cohabitation agreements”.

In these documents, they set out what both partners would like to happen if they were to separate.

This should be a bespoke document, yet it should also be considered a live document. What we mean by that is that the cohabitation agreement should clearly state what you would like to happen if you were to separate.

Live document

As we progress through life, our circumstances change. Therefore, these documents must be kept updated occasionally, and you must occasionally liaise with your family lawyers to update them.

For example, your cohabitation agreement might change; you might purchase a rental property, have children together, or accumulate more debt because of a business venture you both enter into.

Therefore, these legal agreements, such as cohabitation agreements, should be implemented and updated.

Declaration of trust

This article is centred around property interests for unmarried couples. We strongly encourage you to consider entering a “declaration of trust” and a cohabitation agreement.

This document lets you decide what should happen to the property interests if you separate.

Why it's a good idea to contact a legal expert right now

There is a growing problem here in the United Kingdom: ONS data tells us that the number of cohabiting couples in Great Britain is increasing.

However, many of these couples don't know their rights, and some are misinformed, believing the common-law wife and husband status exists.

It's important to note that common law is simply a myth, such as the status of common-law wife or husband status.

This is why if you are reading this article and planning on purchasing a property or currently living with your partner, we encourage you to form a cohabitation agreement if you are unmarried.

Confusing finances

There could be an informal agreement that one partner pays the mortgage, and another partner pays for household expenses and other bills, or the weekly food shop.

However, a contract might not be signed specifying who is paying what.

As you can imagine, there can sometimes be severe disputes over who paid what when it comes to separation. Again this is why you should consider forming a cohabitation agreement.

How much does a cohabitation agreement cost?

This is a bespoke document, and some couple's circumstances will be more complex than others. For example, one partner may run a business and want their business interests reflected in this document.

Therefore, we can offer you a bespoke quote when you contact us.

We are only renting at the moment. Do you still need a cohabitation agreement?

If you rent with your partner, a cohabitation agreement can still be implemented. This is also often a good idea because, as a couple, you might be accumulating collective debt.

It is a good idea to agree on who is liable for what debt, such as car loans, credit cards, and other finance-related items.

A cohabitation agreement can set out who is liable for what debt and what you would both like to happen if you were to separate.

In conclusion

Many of us have rose-tinted spectacles at the start of a new relationship, and we don't want to plan for the worst-case scenario of separating.

You might even find the conversation about forming a cohabitation agreement with your partner quite uncomfortable.

However, retrospectively, if the relationship were to break down, you would have most likely wished that you had this conversation and entered into a deed of trust or a cohabitation agreement before the separation.

Do contact a family lawyer to obtain expert legal advice

We are an established boutique family law firm based in the city centre of Cardiff. We offer friendly, expert advice that is always dispensed in a highly personable way.

Our team is ready to speak with you today. Contact the team to discuss entering a cohabitation agreement or a deed of trust.