There has been a huge increase in cohabiting couples over the last decade.

Unfortunately, couples often do not take legal advice when making joint financial decisions such as buying a house. This oversight can cause problems in the event of a breakdown of the parties’ relationship.

The law treats unmarried couples differently from married couples. So if a cohabiting couple’s relationship breaks down, the parties should be aware that they cannot expect to have the same financial rights as a married couple would have.

Therefore, to avoid a contentious dispute in the future, it is very important that the parties’ intentions in relation to contributions towards any financial assets are recorded. In this respect, Co-habitation Agreements (“living together” agreements) and Declarations of Trust can be entered into, to record both parties’ intentions.

What if a financial dispute between co-habitees arises, but no legal document defining each party’s financial interest exists? In such a case, we are able to advise you on reaching a settlement with your former partner. There are legal principles which set out how property should be divided and a settlement can be negotiated or if needs be litigated.

For more information about this please contact Vandana Chitroda at vc@wdavies.com