Q: Me and my partner are moving in together over the next six months and I want to make sure both of our assets, in terms of property and finances, are protected. We both have varying existing assets and I will be moving into his property, so we want to make sure we have a plan in place from the outset.
A: Moving in together is an exciting step in your relationship but I understand why you both want to make sure your assets are protected, and you are right to think about the legal side of things especially because, as cohabitees, your rights are very different to those of a married couple.
As you are moving into your partner’s house and assuming it is going to remain in his sole name, it is important to understand this does not give you any automatic ownership rights over the property. From a legal perspective, this means you are not entitled to a share of the property even if you contribute to its upkeep or pay some of the utility bills.
This often comes as a surprise to many people because, unlike married couples or those in a civil partnership, cohabiting partners do not have the same legal rights. You may have heard of the term ‘common-law’ husband or wife, but this is not a legal status even if you live together for many years.
To protect both of your interests, you might want to consider entering into a Cohabitation Agreement. This is a legal document which can set out, among other things, what the financial arrangements are while you live together, how any assets you acquire during your relationship might be treated and how any contributions you make would be treated if you were to separate.
The agreement can cover anything from ownership of the property, contributions to mortgage payments or other housing costs to what happens with any furniture and other possessions. While it might not be the most romantic conversation to have, it can save a lot of heartache further down the line if things do not workout.
If, during the course of your cohabitation, you decide to undertake significant renovations to the property such as building an extension and you make a financial contribution to those improvements, another option would be to have a Declaration of Trust.
This is a document which would recognise your financial contribution and make clear whether it is intended that you should have a share in the equity of the property. It is a good way to ensure your contributions are recognised if you are not going to be a legal owner of the property and registered on the title at the Land Registry.
Something else to consider is what might happen if one of you were to pass away. Unlike a married couple, cohabitees do not automatically inherit from each other so if you do not already have a Will, you should both make one. It is worth discussing with your partner how your new living arrangements will be reflected and how it will affect you and where you will live if you are not the legal owner of the property, and your partner dies.
You have not said whether you and your partner intend to have children but if this is a possibility and you remain unmarried, your legal position is very different to a spouse and any claims would be limited.
You should therefore both consider what financial provision will be made in the event of an untimely death because if adequate provision is not made, you would be left unprotected and having to prove that you have a claim against the Estate under the Inheritance (Provision for Family and Dependants) Act 1975 which would be stressful and potentially costly.
In summary, a bit of legal planning now can go a long way in making sure you are both financially protected, leaving you free to enjoy this exciting new chapter in your lives.
Vanda has nearly 30 years’ experience and is an expert in all aspects of family law including divorce, cohabitation and children cases. She specialises in complex financial cases and has notable expertise in international child relocation and other highly sensitive matters. Vanda’s approach includes providing clear advice and a strategic way forward. She also regularly advises upon and drafts pre-nuptial and post-nuptial agreements.
She has been ranked in legal directories Legal 500 and Chambers UK consistently for the last 17 years. The 2024 edition of Chambers states “Unarguably, Vanda is one of the strongest matrimonial finance solicitors in Kent”. Another solicitor says “She’s approachable and responds very effectively to achieve a favourable outcome for her clients. She’s an absolute pleasure to work with”.
Vanda is the former President of Kent Law Society and was also identified in 2023 as one of the top 10 pioneering family lawyers transforming matrimonial law in Kent by Business Today.
