A family law expert is warning couples who live together that they could be at risk of losing their home should they go their separate ways in the future, without a legal agreement to define who owns the property.
Gillian Lavelle, a legal executive at Stephensons Solicitors LLP in Manchester, advises couples who are in dispute over their former home together. She says: “Most co-habiting couples invest a lot of time and money into the home they share and are under the impression that they’re joint owners to the property and should they ever split, there will be a 50:50 division of the assets.
“But there is no such thing as a common law husband or wife, and the law does not recognise cohabiting couples in the same way as a married couple when it comes to dividing assets after separation. They have very little legal rights to an automatic entitlement to any share in the family home even if there are children involved, unless of course they state their intentions from the outset by having a simple Cohabitation Agreement drawn up.”
A client of Gillian’s, who had invested between £12,000 to £14,000 into her ex-partner’s home, recently had to use the Courts to determine a share in the home after they separated.
The property was in her ex-partner’s sole name but during their relationship she had spent the money on home improvements on the basis that she believed it was a joint family home. When they parted, she was evicted and her former partner tried to sell the property without giving her any interest share in the home.
Gillian adds: “Thankfully, we were able to register a restriction at the Land Registry to prevent the former partner from selling the home without our client being notified. We then issued Court proceedings to gain a 50% share of the property. After negotiations it was agreed that she was entitled to a share but it couldn’t be agreed as to how much.
“The case went to trial but on the morning the case was to be heard, the former partner agreed to give our client a 40% share of the property, and he was also liable for her legal fees.”
Our client said: “It took a long time to find the advice that I needed but once I found Gillian, she gave really good advice and helped me through the process.”
This type of scenario is very common and costly legal battles could be avoided by couples who are sensible about their assets and make a simple legal agreement, which is very persuasive evidence of a person’s rights and responsibilities should there be a dispute.
For more information on obtaining a cohabitation agreement or for assistance with a cohabitation dispute, visit www.stephensons.co.uk or call 01616 966 229.
ENDS
Notes to editors:
The latest edition of the Legal 500 ranks Stephensons as a top 60 UK law firm and the fifth largest legal practice in the North West. The firm has 30 partners and more than 350 staff in Manchester, Wigan, Bolton, Leigh and St Helens.
Media information: Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229