Setting Up A Home With Your Partner

Home Ownership

If you move in with someone and the house is in their sole name, you will not usually have any right or entitlement to the proceeds from the sale of the property. This usually applies unless you can prove:

• you have contributed to the deposit for the house or the mortgage payments; or
• you have made a financial commitment (for example, paying for major work on the house) because it was agreed you would own a share of the property.

If the property is not in your name, you may have no right to continue to live there if your partner asks you to leave. Also, if the property is not registered in both of your names, you have no right to inherit the house if your partner dies unless they have made provision for this in their Will. If they do not leave a Will, you may need to make a claim against your partner’s estate through the Court. There are only certain circumstances in which you can do so and our dedicated team will be able to assist in this regard.

It may be recommended that the property is transferred from your partner’s sole name into your joint names, either as ‘joint tenants’ or ‘tenants in common’. If you own as joint tenants with your partner, each co-owner has an indivisible share in the property and each of the owners are equally entitled to the whole property. If one of you dies, the other automatically inherits the property, regardless of what is set out in your respective Wills.

In contrast, if you own the property as tenants in common, each co-owner has a distinct beneficial share in the property. By owning as tenants in common you can formally agree exactly what share of the property you each own by having a Declaration of Trust drawn up to record your beneficial interests in the property. Further details can be found below in this regard. If either of you wishes to leave your share of the property to the other when you die, this will need to be set out in your respective Wills.

Renting Together

If you are renting together, we would recommend that you have a Tenancy Agreement prepared in your joint names.

Banking

If you and your partner have separate bank accounts, you cannot have access to money in your partner’s account. If your partner loses mental capacity, you will not be able to access their bank account unless they have a registered Lasting Power of Attorney in place which appoints you as their Attorney. If your partner dies, the money in their account will form part of their estate. This means that you will not automatically inherit the money unless it is left to you under the terms of their Will. 

Tax status

You and your partner will not have the same tax benefits as married couples or civil partners, especially relating to capital gains tax and inheritance tax. Unlike married couples and civil partners, you may have to pay tax if you want to give major assets to your partner.

Pension Schemes

If you die, your state pension is not automatically passed on to your partner. Different rules apply to company and private pensions, and it is best to review these carefully to see exactly what level of pension you and your partner have.

Making a will

A Will is a useful way of setting out what property and assets belong to you as opposed to your partner. Unless you make a Will, your partner will have no automatic right to a share of your assets if you die, so it is essential to have one if you want your partner or their children to inherit. Our dedicated Wills team (based at each of our offices) will be able to provide you with further information in this regard.

Cohabitation Agreements

These agreements are a way of securing a couple’s financial and other arrangements. They set out, in advance, what each partner of the relationship expects of the other, both during the relationship and if they separate or one of them dies. They are ‘honourable agreements’, which means that not all clauses may be enforced by the Courts. However, they do limit disagreements and certainly provide some peace of mind. You and your partner should both take independent legal advice before signing such an agreement.

Declaration of Trust

It is always advisable for co-owners who own property together as tenants in common to enter into a Declaration of Trust to record the true beneficial ownership of the property as between themselves and to set out any express terms that the co-owners may wish to include. This might include a provision to deal with a situation where one of the co-owners wishes to sell or practical arrangements for day-to-day issues such as how the parties will arrange for maintenance and meet other expenses relating to the property. 

Disagreements

Sadly, most couples don’t take legal advice until the relationship fails, a partner dies or there is some other crisis. It is rarely as easy to solve a problem at this stage, but our specialist team will have the knowledge and experience to advise and protect your interests. 

Contact our team

We know how exciting moving into a new home with your partner can be, so no matter your question or how you need help, our team are on hand to ensure you have the right advice.