Cohabitation Property Dispute
The client has been in a long-term relationship for over 20 years without being married. They jointly own a home, with both individuals named on the deeds and mortgage. Concerns have been raised over property entitlements, particularly due to a significant income disparity between the partners. The client seeks to understand their rights and potential claims regarding the jointly owned property given the length of their partnership.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat are my rights to the property as a co-owner, and how can I ensure a fair division when we separate?
As a co-owner, you generally have equal rights to the property under joint tenancy principles, entitling you to a 50% share unless a separate agreement stipulates otherwise. To ensure a fair separation, consider how the property should be divided or sold and how the proceeds will be shared. Mediation may be beneficial for reaching an agreement, and if disputes arise, a court order may be necessary for sale or division.
How does being unmarried affect my entitlement to shared assets or property?
As an unmarried couple, your rights to shared property are subject to co-ownership laws. Being named on the title deeds typically grants you an equal share unless otherwise stated in a formal agreement, such as a declaration of trust. Your entitlements may also vary based on financial contributions and any informal agreements regarding the property.
Will differences in our income impact the division of assets during separation?
For unmarried couples, asset division follows property laws. As co-owners of the property, the default position is equal division, irrespective of income differences. However, if disputes occur, the court may evaluate the intents behind financial contributions to the property.
Should we create a formal legal agreement to outline asset division, and what should it include?
Creating a formal legal agreement, like a Deed of Trust or Cohabitation Agreement, may be wise due to your long-term cohabitation and shared property. This document should clarify asset division upon separation, including property valuation, individual contributions, equity division, and responsibilities pertaining to the mortgage and joint assets.
Are there tax implications for transferring property ownership or related assets?
When transferring jointly owned property, you may face Capital Gains Tax if the property isn’t your primary residence. However, it could qualify for Private Residence Relief if it is. Be mindful of potential Stamp Duty Land Tax when the transfer includes a mortgage.
