In the UK, the financial settlement for unmarried couples poses a unique set of challenges compared to those faced by married couples and is something which we often talk about in family mediation. Unlike marriage, cohabitation does not confer automatic financial rights and responsibilities on separation, which often leaves many couples in a precarious legal position.
Legal Status of Unmarried Couples
Cohabiting couples do not enjoy the same legal protections as their married counterparts or those in civil partnerships. There is a common misconception that living together for a certain period confers ‘common law marriage’ rights. However, this concept does not exist in UK law. As a result, unmarried couples cannot rely on matrimonial laws to claim financial support or asset division.
Property Rights
The most significant issue facing separating cohabiting couples is the division of property. The legal framework for property rights hinges primarily on ownership and contribution and legal advice should be sought:
- Joint Ownership: If a property is jointly owned, both parties have equal rights to remain in the property. Upon sale, the proceeds are typically divided according to the ownership shares specified in the title deed.
- Sole Ownership: When the property is owned by one partner, the other may face difficulties in claiming a share, regardless of their financial or non-financial contributions to the household. The non-owning partner must demonstrate an interest in the property through a legal concept known as ‘beneficial interest’, often requiring evidence of financial contributions towards mortgage payments, renovations or the initial purchase price.
- Trusts: Constructive trusts and resulting trusts can be used to establish beneficial interest. A constructive trust arises when a non-owning partner can prove that there was a common intention to share the property, and they acted to their detriment based on that intention. A resulting trust can arise when a partner can show that they contributed to the purchase price of the property.
Financial Support and Maintenance
Unmarried partners do not have the same rights to spousal maintenance as married couples. However, they can seek financial support for children under the Children Act 1989. This includes:
- Child Maintenance: The non-resident parent is legally obligated to pay child maintenance, which is calculated based on their income.
- Financial Provision for Children: Under Schedule 1 of the Children Act 1989, a parent can apply for financial orders to cover expenses such as housing, education, and other child-related costs. This can include lump sum payments, property transfer, or additional maintenance payments.
We can discuss these issues in mediation.
Pensions and Inheritance
Unmarried couples are also not able to claim a share of their partner’s pension. However, they can be nominated as beneficiaries to receive death benefits. In terms of inheritance, unmarried partners have no automatic right to inherit each other’s estate unless specified in a will. The lack of a will means the estate will be distributed according to the rules of intestacy, which do not recognise cohabiting partners.
Legal Agreements and Future Planning
To mitigate the risks associated with the lack of legal recognition, unmarried couples are encouraged to take legal advice and consider:
- Cohabitation Agreements: These are legally binding contracts that outline the financial arrangements and property rights of each partner. They provide clarity and reduce disputes in the event of a separation.
- Declarations of Trust: When purchasing property, couples should consider a declaration of trust to explicitly state their respective shares in the property. This document is vital for protecting financial interests and ensuring fair division upon sale.
- Wills and Life Insurance: Drafting wills and designating life insurance beneficiaries are essential steps for ensuring that partners are provided for in the event of death.
Conclusion
The legal landscape for unmarried couples in the UK requires careful navigation and proactive planning. Independent legal advice is very important and Hampshire Mediation will help you find a solicitor if you wish. Unlike their married counterparts, cohabiting couples must rely on a patchwork of property law, child support provisions and private agreements to secure their financial rights. By understanding their legal position and taking appropriate measures, unmarried couples can protect their interests and achieve fair financial settlements in the event of a separation.
