If you jointly purchase a property with your partner, there is an assumption of equal ownership, unless you sign a trust deed which clearly sets out your respective shares in the property, irrespective of each parties’ financial contribution to the purchase price. If one party seeks to dispute this assumption, the burden of proof in doing so will rest with that person.
Unless it is your intention that your property is to be jointly owned irrespective of the amount of money each of you puts into the property, whether it be upon purchase or through mortgage payments or other contributions, you should clearly set out your intentions in writing on purchase of the property.
If you already own a property and have not addressed this, you can still do so by entering into a trust deed now. Our family lawyers have produced many trust deeds for clients across Essex, London and further afield.
Your family home may have been owned solely by one of you when you began cohabiting, in which case the non-owning partner does not automatically acquire any rights in the property and would only do so in limited circumstances. A common misconception is that paying a share of the utility bills and other household expenses (excluding the mortgage) will automatically acquire the non-owning partner an interest in the property. It will not.
If you are concerned as to your rights and obligations, you should seek legal advice as soon as possible and you might consider entering into a cohabitation agreement with your partner so that you are both clear on exactly where you stand. Like a prenuptial agreement, this is not strictly binding, but if the agreement is fair and you have both had the benefit of legal advice, it is likely to be upheld by the courts.
If you do separate, it is important to resolve any issue regarding the property as soon as possible. As the law presently stands, the passage of time will not necessarily affect your rights to a share of the property.
