Unmarried couples who live together have no automatic property rights which could leave themselves worse off in a split, a Shropshire law firm explained today.
Indeed, such is the confusion around the issue that Hatchers Solicitors in Shrewsbury has drawn up a Living Together Agreement, similar to a pre-nup, to protect both parties.
Esther Evans, for Hatchers Solicitors, said property rights for unmarried couples are very different compared to the rights for married couples or those who have entered into a civil partnership.
Even if the property is jointly-owned, an even split would not necessarily benefit a young unmarried mother who needs to provide a home for her children.
She explained: “In light of the current climate with people having less disposable income more people than ever in the UK are choosing to live together, share homes and finances rather than go to the expense of getting married.
“Unbeknown to them this does not mean they automatically obtain property rights.”
When an unmarried relationship breaks down the dispute usually relates to a jointly owned property or other joint assets in very much the same way as dealing with finances upon divorce. However, with a married couple the property is usually divided according to the parties needs, taking into account any minor children and the starting point is equality when dividing the assets. With an unmarried couple however, they can claim their own property so there needs to be a distinction as to who owns what.
“Where there is jointly owned property, it should be divided equally unless specific shares are decided at the time of purchase depending on the respective contributions made by the parties,” said Esther.
“An equal division of property would not necessarily benefit a young unmarried mother who needs to provide a home for her minor children. If she were married then a judge could be persuaded to transfer the property to the wife so she can provide a home for the children at least during their minority. She may also be able to claim maintenance for herself as well as for the children, depending upon her own financial circumstances.
Therefore the rights for unmarried couples are not as protected as they are for married couples.”
Esther pointed out that a living together agreement can perform a similar function as a pre-nuptial agreement and enables the couple to record their intentions and their respective contributions to property or other assets.
She added: “This can set aside any fears a couple may have who are considering living together and ensure they feel sure in the knowledge that if their relationship broke down they would be protected financially.”
