Property Rights

What are the property rights in home ownership for unmarried couples?

In home ownership for unmarried couples, property rights are not automatic. Unmarried partners have no legal right to ownership of each other’s property, regardless of the length of the relationship. Legal ownership is determined by whose name is on the title deeds or Land Registry, and the property belongs solely to that individual.

However, beneficial ownership may exist alongside legal ownership if one partner can prove a financial contribution to the property. When purchasing a property together, the distinction between joint tenants and tenants in common carries different legal implications. To clarify ownership shares and intentions, it is recommended to create a Declaration of Trust. In the case of rented property, only those named on the tenancy agreement have rights to remain in the home if the relationship ends. There is no automatic right to stay if only one partner is the named tenant.

What financial matters are important for legal considerations?

When it comes to financial matters with legal implications for unmarried couples, several key considerations arise. In the case of joint finances, both parties are fully liable for the entire amount of any joint debts, regardless of who incurred the expense. Joint accounts can also become complicated in the event of separation or death, as access and control may be disputed. Unlike in marriage or civil partnership, there is no legal right to maintenance from a former partner after a breakup.

Regarding pensions, there is no automatic entitlement to a partner’s pension unless the partner is specifically nominated as a beneficiary. It is important to check the rules of the specific pension scheme, as some may recognise unmarried partners under certain conditions.

The responsibility of both parties in childcare and maintenance.

In matters of parental responsibility, the mother automatically holds parental responsibility for the child. An unmarried father can gain parental responsibility if he is named on the birth certificate (for births registered after 1 December 2003), signs a parental responsibility agreement with the mother, or obtains a court order.

Both parents have a financial responsibility to support their child, regardless of their marital status. If they cannot agree on child maintenance payments, the Child Maintenance Service can assess and enforce payment arrangements.

When it comes to custody and access, residence and contact are determined based on what is in the child’s best interests, not the parents’ marital status. If the parents cannot come to an agreement, family courts can issue Child Arrangements Orders to settle where the child will live and how contact with each parent will occur.

How is death and inheritance worked out to support unmarried couples?

Intestacy (Dying without a will)

In the event of intestacy unmarried partners have no automatic inheritance rights under the intestacy rules. Instead, property and assets pass to the deceased’s children, or to parents, siblings, or extended family if there are no children. Unlike married couples, unmarried partners do not benefit from the spouse exemption for inheritance tax, meaning tax may be payable on any assets above the current threshold of £325,000. Additionally, there is no automatic right for an unmarried partner to remain in the home after their partner’s death. Without proper legal provision, the surviving partner may be forced to leave the property.

Legal protections available

Cohabitation agreement

A cohabitation agreement is a legally binding document that sets out the ownership of property and assets between unmarried partners. It establishes financial arrangements both during the relationship and in the event of separation. The agreement can also cover arrangements for children, pets, household contents, and the responsibility for any debts. To ensure it remains accurate and relevant, a cohabitation agreement should be reviewed regularly, particularly after significant life events such as the birth of a child, property purchase, or major financial changes.

Will

Creating a will is essential to ensure that your partner inherits according to your wishes, especially for unmarried couples who do not have automatic inheritance rights. A will allows you to specify how your assets should be distributed and can help protect your partner’s financial security. It should be updated regularly, particularly after major life events such as having children or buying property, to ensure it reflects your current intentions and circumstances.

Lasting power of attorney

A Lasting Power of Attorney allows your partner to make decisions on your behalf if you become unable to do so. There are two types of LPA: one covering health and welfare, and the other covering property and financial affairs. This legal document ensures that your partner can manage your medical care, living arrangements, or financial matters if you’re incapacitated, offering clarity and authority during difficult times.

Next of kin status

Unmarried partners are not automatically recognised as next of kin, which can lead to complications in situations involving medical decisions or hospital access during emergencies. Without formal recognition, a partner may be excluded from important decisions or information. To avoid such issues, it is recommended to put formal documentation in place such as a Lasting Power of Attorney to ensure your partner has the legal authority to act on your behalf when needed.

Common law marriage myth

There is no such thing as ‘common law marriage’ in England and Wales. Living together, even for many years, does not confer any automatic legal rights between partners. The term refers to a widely held but incorrect belief that long-term cohabitation creates a legal status like marriage. Unmarried couples do not have the same legal protections as married couples, making it important to take legal steps, such as creating a will, cohabitation agreement, or Lasting Power of Attorney to protect each partner’s rights and interests.

Getting legal advice

It is important to seek specialist family law advice before making major life decisions such as buying property together, making significant financial commitments, or having children as an unmarried couple. Legal guidance is also essential after a separation to understand your rights and responsibilities. In the event of disputes, consider mediation as a constructive alternative to court proceedings, as it can help resolve issues more amicably and cost-effectively.

Legal advice

It is advisable to seek legal advice from one of our specialist family lawyers before proceeding with a judicial separation application. We can provide guidance tailored to your specific circumstances.

This fact sheet provides general information only and should not be considered legal advice. Laws and procedures may change over time. For advice specific to your situation, please contact us family@chadlaw.co.uk