bsglaw

DIVIDING SPOILS WHEN UNMARRIED COUPLES SEPARATE

Naturally most people when starting a new relationship do not think about what will happen if it breaks down.  Unmarried couples (of any sex) who separate do not have the same legal rights and remedies as married couples and can only rely upon the Court’s powers in relation to land law and trust law to divide their property between them.   They cannot claim maintenance for themselves.

If an unmarried couple purchase a house in joint names there is a presumption that they intend to own it equally and share the proceeds when it is sold equally.

That applies whoever pays the mortgage. If they separate either can ask to the Court to order the sale of the house to ensure they receive their share. Obviously, if they both agree, either owner could sell their share of the house to the other.  The Court’s powers are limited to ordering the sale and determining how the proceeds should be divided. This is the simplest situation in which couples find themselves on separation. Many couples find themselves in a much less certain situation.

Sometimes at the start of the relationship one person moves into a house already belonging to the other.  Also for various reasons couples sometimes buy a house that is only in one of their names. Years go by without discussion of who owns what. It is the last thing on their minds. Both contribute equally to the household costs. Both assume that they own a share of the house. When things go wrong and they separate one of them suddenly finds out that they are left without a roof over their head. This could even happen if they had children. One way to avoid this situation would be for the couple to draw up an express Declaration of Trust saying who owned what.

In the above situation the non-owning person could make application to the Court under Trust Law to determine if they own a share of the house. The Court would have to consider the evidence presented before it to discover the intentions of the couple. When the Court is asked to determine who owns what, its decision is based upon precedent cases that have established the principles to be applied and each case ids decided on its own facts. 

Going to court is expensive, slow and stressful. If people take legal advice at the start of their property owning relationship they will know where they stand.  In the event of separation the pain,worry and expense would be a lot less.

At Blackhurst Swainson Goodier we can advise you on the best way to ensure that your interests are protected and ownership of property is clear.

If you would like any further advice please contact Andie Brown, Rebecca Butterfield or Michael Willey at Blackhurst Swainson Goodier LLP on 01524 386500.

Please visit our website  -  www.bsglaw.co.uk