Debunking the Myths of Cohabitation

But there are some myths about cohabitation that may need debunking.

Firstly, it does not matter how long you live with your partner or indeed if you have children with your partner, you are not treated in common law as if you were married. This means that on separation, unless the house or assets have been placed into joint names, you are not entitled to leave with anything.

However if you have children with your partner, you are entitled to apply under Schedule One of the Financial Remedy Rules for help with housing for your children and the claims for capital can include covering the costs of furnishing such housing and items such as laptops, bikes, etc or school fees depending on the age of the child together with child maintenance, dependant on the contact arrangements. If the child arrangements are equally split, then there is no maintenance to be paid by either party.

On making an application under Schedule One of the Financial Remedy Rules, the court will take into account (a) the income, earning capacity, property and other financial resources of the parties, both at the time of separation and in the foreseeable future. They will also consider the financial needs, obligations and responsibilities which each of the parties has or is likely to have in the foreseeable future and the manner in which any child was being or was expected to be educated.

It may be prudent to draft a cohabitation agreement in case of future separation. The agreement can settle how assets and possessions are divided in the event of a future separation and this should save on potential legal fees and reduce stress if such a separation occurs.

A further word to the wise, if one of you is generating all the income, and also dealing with much of the child care arrangements, it is certainly worth buying the family home with a declaration of trust which can record who has invested the most in the property, and made the greater contribution to the mortgage payments. Signing a declaration of trust when the house comes to be sold will ensure that the party who has invested more into the property should not have to equally share the equity but will pay the other party what was agreed in the declaration of trust document.

The law commission is looking to change the laws of cohabitation but that has not yet happened so in the meantime, please consider taking the advice as outlined above.

For further information, please contact Kerry: kerryfretwell@bexleybeaumont.com  |  07738697329