27 June 2019
What is a Cohabiting Couple?
Cohabiting couples live together but are not married or in a civil partnership. 3.3 million couples in the UK are cohabiting but there is no legal recognition of this type of relationship.
Some couples choose to marry or by form a civil partnership to have their relationship legally recognised . If you do not wish to go down those routes, you can still ensure that you and your partner are protected.
1. Make a Will
Your cohabitee will not automatically inherit from you. If you die, they may be able to make a claim against your Estate if they fulfil certain criteria. However this is expensive, time-consuming and stressful. A much cheaper and easier solution is simply to make a Will which provides for them.
Clients are often concerned about making a Will to benefit their partner because they also want to benefit other family members or children from a previous relationship. A lawyer will be able to advise you on how to structure your Will to benefit both your partner and children fairly. Such wills often include flexible life interest trusts or rights of occupation.
2. Make a Lasting Power of Attorney (LPA)
Whilst it is an unpleasant thought; people have accidents everyday. If you are in hospital or abroad; you may not be able to deal with important matters yourself. Your cohabitee will not be able to help you with your financial affairs unless they are registered as your Property & Financial Affairs Attorney. For example, they won’t be able to access your bank account or speak to your insurance company.
Hospital and care home staff often require sight of a Health & Welfare LPA before they can discuss your condition with your partner. This type of LPA can also include instructions similar to a “living Will” which states whether or not you wish to be resuscitated in particular circumstances.
You might not want to appoint your partner as your attorney or sole attorney. You may wish to have a combination of your partner and children (or other family members) appointed. A lawyer can advise you how best to structure your LPAs in practical terms to reflect your wishes.
3. Make a Deed of Trust regarding your Property
When you own a property jointly with your partner you need to consider how you wish to hold the property. There are two options to consider. First, you have the option of holding the property as Joint Tenants. This means that if one of you were to die the other party would automatically inherit the other’s share in the property.
The second option you should consider is Tenants in Common. When you hold the property as Tenants in Common you can opt to hold the property in equal or unequal shares. Once you have worked out the shares you both wish to secure the details of this can be transposed into a Deed of Trust.
When you hold a property as tenants in common you need to ensure that you have a valid Will in place to deal with your respective shares. Your partner will not automatically receive your share. Clearly stating what you wish to happen with your share of the property will prevent problems and confusion in the future.
A Deed of Trust explains what proportion of the property you own. It also deals with how you will move forward if one party wishes to leave the property and be bought out or otherwise sell the property.
4. Make a Cohabitation Agreement
You can enter into a Cohabitation Agreement with your partner. It will record your rights and responsibilities towards each other including details about your respective shares. It can include the current financial arrangements for payment of utility bills, the mortgage, food and other household expenses.
A Cohabitation Agreement can also record the parties’ intentions, if one party invests further monies into the property, for instance to pay for a new kitchen or discharges part of the mortgage.
A Cohabitation Agreement can avoid expensive and protracted litigation, by recording what will happen to the family home if the owners separate.
Whilst it is not romantic to discuss these things with your partner; it is sensible and it does save a lot of hassle and misunderstanding in the long run. It means that both parties know what to expect if things go wrong. You and your partner deserve to know what you are getting yourselves into before making big commitments.
If you would like more information about providing for your partner please call one of our expert lawyers based at our Bournemouth and Christchurch offices.
