- Protecting the Bank of mum and dad: cohabitation agreements
Protecting the Bank of mum and dad: cohabitation agreements
Protecting the Bank of mum and dad: cohabitation agreements2nd June 2021 - Published by Kuits Family team
We are frequently asked to advise whether one half of a cohabiting couple can claim a share in a property owned in the sole name of the other. Whilst they cannot do so automatically, there are a number of situations where such a claim could arise.
How claims arise
Claims can arise in various situations, such as: a partner making a contribution towards the cost of improvement to the property which leads to an increase in its value, or simply where the property owner assures his or her partner that “whatever is mine is yours”, with the partner relying on this assurance to his or her detriment. The property owner is often surprised at such unintended consequences, as are his or her parents, who may have gifted the deposit for the purchase and had not imagined that anyone who lives with their child could benefit from their generosity.
What is the solution?
Such situations and others, can be prevented by the couple entering into a written cohabitation agreement. The agreement would record the precise terms upon which the property is to be occupied, who is to pay for what and most importantly the circumstances in which the non-owning party is to acquire an interest, if at all, in the property concerned, or alternatively to confirm that they are not to do so under any circumstances.
Cohabitation agreements can also usefully be considered where a couple are buying a property jointly and, for example, are contributing unequally towards the deposit or mortgage repayments.
Get in touch with a Family lawyer today
If you would like more information on cohabitation agreements and how we can help you in your circumstances, please contact Senior Lawyer Colin Davies on 0161 838 8180 or at firstname.lastname@example.org.