Buying a home with your partner is an exciting milestone but what happens when the relationship ends, and you’re not married?
Unlike married couples, unmarried couples don’t have the same legal protections when it comes to property.
If you’ve bought a property together and are now separating, it’s crucial to understand your rights, responsibilities, and options. Here’s a breakdown of what you need to know.
First things first for unmarried couples
Your legal rights depend on how the property is owned:
You can check how you own the property by obtaining the title deed from the Land Registry.
Do you have a Declaration of Trust?
A Declaration of Trust, which is also known as a deed of trust, is a legal document which sets out the following:
- Who owns what share of the property.
- Who paid the deposit or legal fees.
- How the proceeds of the property should be divided, if the property is sold.
If there is no Declaration of Trust, it may be that you need to prove your financial contribution. This is again dependent on whether you are a joint tenant or tenants in common.
What happens when you split up?
You have the following options, and this is dependent upon what the other joint owner(s) is agreeable with:
- Agree to sell the property
This is the most straightforward option. If one owner wishes to sell the property or a deal cannot be agreed, then a court application may be required under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).
- One owner buys out the other
You may agree to purchase the other joint owner(s) share. It may be that negotiations are conducted in respect of this.
- Disagreement over what is fair
If there is a dispute over who owns what share, which could arise out of one owner paying more or one owner not being on the deeds, you may need to issue court proceedings for a TOLATA claim.
The Court may consider:
- Who is on the legal title.
- Financial contributions (deposit, mortgage payments and any home improvements).
- Any written or verbal agreements.
- The parties’ intentions.
There may be other factors which the court would assess when making a decision.
What if only one partner is named on the deeds?
If you are not on the deeds and there is no written agreement, you don’t automatically own anything, even if you have helped pay the mortgage or undertook renovations.
However, if you can prove that you contributed financially with the intention of acquiring a share, you may have a claim under TOLATA.
This is a complex area of law and therefore it is best to speak to a solicitor experienced in joint ownership disputes.
Tips for avoiding disputes in the future
- Draw up a Declaration of Trust when buying a property
- Keep records of all payments and financial contributions
- If you’re moving in with a partner who owns the property, consider a cohabitation agreement
- Don’t assume that living together gives you “common-law” rights – it doesn’t!
Final thoughts
When unmarried couples split up, the law doesn’t offer the same protections as it does for married couples (especially when it comes to property). That’s why it’s essential to have clear agreements and understand your legal standing from day one.
If you’re facing a separation and jointly own a property (or believe you have a claim), get legal advice early. It could save you a lot of stress, time, and money down the road.
We are experienced in joint property ownership disputes. If you believe you are likely to have a dispute please contact either Charlotte Barugh (charlotte.barugh@jacksons.law) or Emily Skillcorn (emily.skillcorn@jacksons.law).
If you are jointly purchasing a property, or moving into a property owned by your partner, we can assist in drawing up agreements to protect you from any disputes in the future.
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