Unlike married couples, those who are not married do not have automatic legal rights to a partner’s property as those who are married. So, when it comes to purchasing a property as an unmarried couple it is vital that the legal aspects of the purchase are considered so you understand how your legal position could be affected, if in the future, you were to separate.
Legal Ownership
Deciding on how the property is to be owned is a very important consideration. When you are purchasing a property, discussions will be had in relation to how the property will be owned, whether this is as joint tenants or tenants in common.
To purchase a property as joint tenants refers to the legal arrangement in which you co-own a property and means you both will own the whole of the property equally regardless of whether one of you has contributed more towards the property than the other. For instance, if one of you has paid 80% of the deposit for the property, the ownership of the property still remains completely equal. As joint tenants, which is also referred to as ‘beneficial joint tenants’ you will have equal rights to the entirety of the property. Upon the death of a co-owner, their interest in the property will automatically pass to the surviving co-owner and you cannot leave your share of the property in your will to anyone else.
Equal Ownership
When couples decide to purchase a property together they usually intend on spending the rest of their lives together so when it comes down to discussing how they will own the property, ‘joint tenants’ is often the most obvious choice so that the property is owned equally. However, if you and your partner were to separate and if the property was to be put on the market for sale, then in accordance with the terms of being joint tenants, the sale proceeds of the house must be split equally unless an agreement to the contrary is made. As discussed above, regardless of whether your contributions towards the deposit of the property or monthly mortgage payments were slightly, or significantly more, the same rule still applies.
Rule of survivorship
Furthermore, the rule of survivorship is an inherent feature of a joint tenancy which means upon the death of a co-owner, their 50% share of the property will automatically be inherited by the surviving co-owner. It is important to know that you cannot leave your share of the property to anyone else, even if you were to make a will with the request that your share of the property is to pass down to a specified person.
Tenants in Common
To purchase a property as tenants in common, you will share ownership of the property, but not necessarily in equal shares.
As tenants in common:-
- you can own different shares of the property.
- your interest in the property does not automatically go to the other owner/s if you die.
- this agreement enables you to leave your share of the property in your will.
Cohabitation Agreement
If you and your partner are considering purchasing a property and you are not married, it is important to consider beforehand the legal implications of how this can affect your position in the future if the relationship were to break down.
Entering into a Cohabitation Agreement can provide you with legal protection and the agreement will determine what will happen with the property if you were to separate.
Read more here on Cohabitation Agreements.
Contact us
If you are considering purchasing a property together as an unmarried couple and want to know how a Cohabitation agreement can protect your legal position if you and your partner were to separate, contact us here to speak with a family law expert today to get one put in place and to offer you clarity and peace of mind for the future.