Moving in with a partner is a significant milestone in any relationship. When taking such a big step, it generally signifies a greater level of commitment between the two of you and possibly even intentions of officiating your union in the future. This transition can be filled with immense feelings of joy and anticipation for what is to come in your new chapter together, but it is important to take a moment to consider the practical and legal aspects of sharing a home before allowing yourself to be swept up in the excitement of it all. Unlike marriage or civil partnerships, cohabiting couples in the UK lack certain legal protections, so making sure that you understand your rights and responsibilities is an essential first point of call before you act on anything.
It’s Common Law Marriage, Right?
One of the most common misconceptions in the UK is the belief in “common law marriage,” which holds that when couples live together, they eventually gain the same rights as married couples over time. Unfortunately, this is simply untrue and there is no such legislation in effect to support such an idea. Cohabiting couples, no matter how long their relationship lasts, do not automatically acquire rights to each other’s property, inheritance, or pensions. You should therefore consider taking proactive steps to protect your interests and clarify the details of your new living arrangement before you go into it. After all, there is no harm in being sure that your affairs are in order if ever the relationship were to come to an end, or if one partner was to pass away.
Get a Cohabitation Agreement
Insert the cohabitation agreement, which can serve as a practical way to define your living arrangements, including the financial aspects, and protect both you and your partner’s interests. While not legally binding, these agreements are often taken into consideration by courts in legal proceedings, especially when they are well-drafted and agreed upon fairly. A cohabitation agreement can outline key aspects of your shared life with your partner, such as how you’ll divide rent or mortgage payments, manage household expenses, and handle ownership of assets. It can even address what would happen if the relationship were to end, providing a clear framework for how to deal with the practicalities of a potential split, which in turn reduces the likelihood of any unnecessary disputes in that event.
Buying or Renting
Being crystal clear about your financial commitments is especially important if you are intending to buy a home together. When doing this, partners in the UK can purchase a property either as joint tenants or tenants in common, and the differences between both options are important to be aware of:
- Joint tenants: This means you both own the property equally, and if one partner dies, the other automatically inherits their deceased partner’s share, regardless of any provisions which may be contained within the deceased partner’s Will.
- Tenants in common: This allows for the property to be held in unequal shares, which is especially useful in cases where one party is investing a lot more than the other in the property. Holding a property as tenants in common also makes it possible for each person’s share to be passed to someone named in their Will, instead of automatically passing to their partner/the other co-owner upon their death.
If you are moving into your partner’s property, it is still crucial to discuss whether you’ll have any legal interest in it. If you don’t have any formal ownership of the home, you may not be entitled to a share of the property in the event of a split, even if you have contributed to the mortgage and bills for many years. In certain circumstances, you may wish to enter into a Declaration of Trust to specify any particular contributions you have/will make and to stipulate that you do have an interest in the property (if this is solely owner by your partner), or a larger interest than the other co-owner (where the property is jointly owned). This will help to ensure that your financial interests will be dealt with fairly should the house ever need to be sold or transferred in the future.
If you are renting a home together, you will need to be sure that your tenancy agreement clearly accounts for both of your interests in the property. For example, if both names are on the lease, you will automatically share responsibility for the rent and any damages that occur during your tenancy. However, if only one partner’s name is on the lease, the other may have limited rights to the property if the relationship ends or the lease is terminated. You should therefore aim to have honest conversations about both of your financial contributions to the upkeep of your home, your responsibility for its deposit, and what your plans would be if one partner were to move out. Ensuring that you are both in agreement about your finances (especially if you are also considering opening a joint bank account or having joint savings) will help minimise any unnecessary conflict if ever you should both part ways in future.
What About Wills and Family Ties?
Although perhaps a bit of a morbid subject, it is also important to know that cohabiting couples do not have automatic inheritance rights. That is, if one partner dies without a Will, the other will not automatically inherit their estate under intestacy laws, regardless of how long they may have been living together. As mentioned above, you will need to draft a Will that clearly specifies anything you would like to leave to your partner if ever you were to unfortunately pass away. Specifying your wishes surrounding any inheritances in this event will also help reduce potential disputes among surviving family members and manage tax liabilities more effectively. This is particularly important for unmarried couples as they are not exempt from inheritance tax as spouses are. Note: setting up life insurance or a trust can also further secure your partner’s financial future here.
Finally, if you have children, you will need to make sure that you clearly understand parental rights and how they relate to all the above from a legal standpoint. For example, a lesser known fact here is that, in the UK, an unmarried father does not automatically gain parental responsibility for his child unless he is listed on the child’s birth certificate, enters into a parental responsibility agreement with the mother, or obtains a parental responsibility order from the Court. Parental responsibility allows a parent the legal right to make decisions about a child’s upbringing, education, and welfare. This is of course taking into account the wishes of any other adult with parental responsibility as well. Children can understandably be a highly sensitive topic to broach, but you should aim to discuss any such arrangements (if applicable) as early as you can in your relationship to ensure that both parents have the rights and responsibilities they need.
At Grayfords, we understand that relationships and families can take a variety of forms and we believe in supporting you to build a life that protects your interests as you navigate these. Our family law solicitors are highly experienced in a wide range of family law matters, including cohabitation agreements, pre and post nuptial agreements, and child arrangements. Don’t hesitate to call us today on 020 7100 6100 to book in your free initial consultation and find out more about how we can help.
