UNTYING THE KNOT

Navigating the Financial Realities of Separating Couples

There are about 3.3 million cohabiting couples in the UK. What is more cohabiting relationships are the fastest-growing family type in the UK.

Q: What are the financial rights of unmarried couples, if they split up?

A: The simple answer is that unmarried couples living together in England and Wales don't have the same legal rights as those who are married or in a civil partnership.

However in some cases, it may be possible to make a financial claim against an ex-partner, even if you weren't married.

A cohabitation agreement can cover how you’ll share the rent or mortgage and bills and how to deal with any bank accounts, property or assets if you should separate. A cohabitation agreement also helps agree things in a fair way, without the emotional pressures which can arise when a relationship breaks down. The agreement can be drawn up by a lawyer - but it is not cheap. The Co-op charges a little over £1,000 but can be useful and is certainly worth considering.

Q: What happens to our home if we split up?

A: If the home isn't in your name, your rights over it may be strictly limited. That's why it might be a good ideas, if suitable, to buy the home as 'joint owners'. If the couple are joint owners, then both people have equal rights to stay in the property.

There are different types of joint ownership.

Joint tenants

As joint tenants (sometimes called ‘beneficial joint tenants’):

• you have equal rights to the whole property

• the property automatically goes to the other owners if you die

• you cannot pass on your ownership of the property in your will
  

Tenants in common

As tenants in common:

• you can own different shares of the property

• the property does not automatically go to the other owners if you die

• you can pass on your share of the property in your will

This includes whether they are joint owners and how much each person contributed towards the purchase, mortgage or repair of the household.

Q: I don't formally own part of the property but we always treated it as a shared responsibility and I paid the bills and repairs - do I still not have any rights?

A: You might have what is deemed to be a 'beneficial interest' in the property. But you will probably have to go to court to enforce it. If the court finds in your favour you may be given some rights over the home or some of the proceeds from a sale.

Q: We have children together, but are not married. What support can I get after the split, to help with child costs?

A: If you have children with your partner, both parents have a legal duty to financially support their children. If the child lives with you after the separation, you would be entitled to child maintenance payments from the other parent.

Child maintenance payments will not affect any benefits that you and your children get, including Universal Credit. You will not have to pay tax on them.

You can get help in arranging child maintenance through the government Child Maintenance Service

Child maintenance is calculated by considering things such as: how much your ex-partner earns; how many children you are seeking child maintenance for; how many nights they stay with your ex-partner; and if your ex-partner lives with/cares for any other children.

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