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In this article we aim to address those issues which arise where a couple, either with or without children, live or intend to live together.
Many people embarking on living together give very little thought at the outset to their legal position with regard to property and other matters. Most problems of this sort occur on the ending of the relationship, whether by breakdown or on death.
This article may assist you in addressing potential problems before they arise.
We state the position as the law stands at October 2007. There may be future legal developments which may affect your position.
If two or more people intend owning a property jointly as tenants in common, whether or not they are to own it in equal shares, a Declaration of Trust is very important to regularise the agreement between them.
A Declaration of Trust can state the proportions in which co-owners own a property and their respective responsibilities for payment of any mortgage, utility bills, etc.
The Deed can also provide that on the sale of a property or division of the proceeds of sale, named parties receive back any lump sum which they may have originally contributed to the property. This can be useful for any parents intending to contribute to a son or daughter's first purchase.
Most importantly a Declaration of Trust provides a framework for co-owners to realise their respective shares or withdraw from the co-ownership arrangement.
This may not seem very important now, but if in the future there was any disagreement or dispute between you and your co-owners, you would save yourselves a significant amount of distress - and legal fees - if an agreed document was already in place which all parties were legally obliged to follow.
A house purchase is probably the most expensive financial commitment you will ever make in your life.
Do not therefore risk your financial future by making inadequate arrangements.
Please contact Hilary Buckle at our Reading Office on 0118 958 9711.
There has until recently been an important distinction between how the law treats married and unmarried parents with regard to their children and this is a distinction about which many unmarried parents remain ignorant until problems arise.
In the case of married parents of a child they will automatically acquire parental responsibility. Until recently in the case of unmarried parents only the mother would automatically acquire parental responsibility. An unmarried father without parental responsibility is therefore at a disadvantage. This may affect his everyday care of the child in that he will not, for example, be able to give his consent to his child receiving medical treatment, a school may be unwilling to provide him with reports as to the child's progress, etc. Far more seriously should the mother die, unless she has appointed the father as testamentary guardian of the child in her Will then on her death the father would have to apply to a Court for an Order granting him parental responsibility or a Residence Order.
A recent change to this situation was brought about when Section 111 of the Adoption of Children Act 2002 came into force on 1 December 2003. This provision enables a father who is not married to the mother at the time of the child's birth to acquire parental responsibility through registration of the birth, with the mother's consent. This means that an unmarried father whose name appears on the child's Birth Certificate will automatically acquire parental responsibility. But this provision is not retrospective. This means that in all cases of births before 1 December 2003 where an unmarried father's name does not appear on the Birth Certificate then he will not have parental responsibility.
The problems outlined above can be overcome by a relatively straightforward procedure. An unmarried father may acquire parental responsibility by various means but in cases of people living together the simplest method is by entering into a parental responsibility agreement with the child's mother. For such an agreement to be effective all of the necessary formalities must be complied with. It is on this that you may wish to consult us so that we can ensure that the agreement is properly prepared, executed and registered on your behalf.
Please contact Paul Wild at our Reading Office on 0118 958 9711 for further information.
Despite the number of people living together in this country Cohabitation Agreements are few and far between. In other countries they are widely used. Some people do however wish to enter into a formal agreement when they are about to commence a cohabiting relationship. This is particularly relevant when buying a house together, which is a large financial commitment.
The Agreement could deal with some of the following:
If a formal agreement is in writing and both parties have taken independent advice before entering into the agreement, then the agreement should be of strong evidential value should there be a future dispute or falling out between the parties.
Please contact Paul Wild at our Reading Office on 0118 958 9711 for further information.
Wills are particularly important for unmarried couples, because there is no legal right for a surviving partner to inherit from the estate of the first.
Therefore if you intend your partner to benefit from your share of the property in which you live, then you must make a Will specifying this.
You may choose to allow your partner to remain in the property, or to enjoy your share of the property for the rest of their life, or for a shorter fixed period such as for a specified length of time or until re-marriage or cohabitation.
If you have children and especially if they are not children of your current relationship, there is even more urgency to ensure you have made proper provision for them.
You need to ensure that you choose executors/trustees to look after your estate wisely; and guardians who would take on a parental role after your death. Please refer to the section on children within this leaflet.
A properly drawn Will can also assist you in mitigating the effect which Inheritance Tax may have on your estate. Inheritance Tax now affects many couples who own property in the South East.
Please contact Hilary Buckle at our Reading Office on 0118 958 9711.
Please contact Hilary Buckle or Paul Wild at our Reading Office on 0118 958 9711 for details.
