Living together made safer, legally speaking - 28th January 2005

Moving in with a partner is one of the most important decisions many people ever make. But research shows that the UK’s two million co-habiting couples are at great financial risk, as the majority don’t have any formal agreement about their finances in place. 

 

Co-habiting couples often believe they have the same rights as married partners; the term ‘common law’ is used frequently. But the fact is, that co-habitees have no legal rights over property or finances in the event of a relationship breakdown or the death of one partner.

 

But there is a simple solution to help divide up the assets more fairly. AdviceNow - an organisation funded by the Government’s Department for Constitutional Affairs – is urging couples to consider drawing up a Living Together agreement.

 

The agreement can be tailored to the needs of the couple but, in its standard format, it covers issues such as individual earnings, deposits paid on property, who will pay for the children, the mortgage and household bills, and who owns what goods. Although it's not legally binding it could prove very helpful in the event of any court proceedings. 

 

Family lawyer, Julie Burbidge, from Wards’ Weston-super-Mare office  says: "If the relationship broke down and an amicable agreement couldn’t be reached, the court is likely to recognise the agreement unless it was clearly unfair, for example, because circumstances had changed in a way that had not been foreseen. The agreement provides the court with clear evidence of what the couple had intended and often, this is all that’s required”. 

 

The Living Together agreement can also be strengthened by asking a solicitor to draft it as a "deed", which turns it into a legally binding contract between two parties. 

 

The important thing to remember about the agreement, is that it is not just about focusing on a break-up.  The agreement allows couples to discuss and decide on day-to-day financial arrangements and protects both of them from whatever might happen in the future, including the possibility of the death of one partner.

 

Contact Julie Burbidge on 01934 428800 or email her at julie.burbidge@wards.uk.com.