Living Together: Legal Advice On How To Protect Yourself Financially

In the UK, the law treats couples who live together in a very different way to those who are married

. The financial protection provided by the law during the cohabitation and if the relationship breaks down is very different and for cohabitees almost non-existent. Whereas in divorce proceedings a court can and often will redistribute the family assets and order one party to pay maintenance to the other, there is no such provision for cohabitees however long they have lived together.

What the law will do however is enforce arrangements and agreements that have been made by the parties. It is therefore for them to agree and set out-preferably in a formal cohabitation agreement-what is to happen should certain eventualities occur.

In addition they should both make Wills. Should one of the partners die without making a will, the surviving partner has no legal right to the other partner's property. Always get things down in writing both to protect yourself in any eventuality and to avoid future arguments and disputes. If you have bought a property together be clear who owns the property and in what shares. Discuss and agree who will contribute to the purchase and how the sale proceeds will be divided up on sale. Therefore if one of you has paid the deposit it may well be agreed that this amount will be paid back when the property is sold before dividing up the balance.

No matter what division is agreed, make sure that the ownership shares agreed are recorded properly when you purchase the property. When nothing is recorded the law will presume that joint owners own a property equally although one may have made a greater contribution which they would want back should the relationship breakdown and the property have to be sold.

Discuss whether the property is to be held as tenants in common or joint tenants. If nothing is said, then you will own the property as joint tenants, which means that it's owned in equal shares and if one of you dies, the share of the deceased will pass automatically to the surviving partner - not to the deceased's family or anyone else they may choose to nominate in their will.

You may well need to draft a trust deed to reflect the agreement reached as to what is to happen with the property if you separate. This will make things absolutely clear and cut out arguments (and legal bills) if things do not go as you intend.

As soon as you can, agree on the payment of living expenses. Decide who is going to pay for food and general household expenses and who will pay the mortgage, council tax, and other bills which relate to the house. If you're going to have joint bank accounts and credit cards consider how they will operate. Agree the amounts you will both pay in and what can be paid from the account. Nothing can start an argument like one person accusing the other of overspending on a joint bank account. Agree who will own any large items purchased.

If you or your partner have children from another relationship agree where you stand in caring for and disciplining these children. Arguments are more than likely. Fathers with children born before December 2003 may need to enter into a parental responsibility agreement with the mother unless they are shown on the birth certificate. Stepparent's parental responsibility agreement can make clear your position concerning your stepchildren if you are a step-parent. You will then be able to carry on the care of the children in the event of your partner dying.

Finally prepare for what will happen if one of you falls ill. Consider the need to make a power of attorney to give your partner control of your financial and business affairs. And on a sombre note think about making a Living Will or Advance Medical Directive. Your partner will then be able to take care of your wishes. Otherwise relatives, possibly distant, would otherwise have to be consulted.

by: Andrew John

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