So many unmarried couples are left legally exposed when they buy a property together
Are you living with a partner but not married? You could be leaving yourselves exposed legally! Read this article to find out why and what to do to protect yourself for the future.
There was once a time when a couple would court before marrying, getting to know each other before committing to spending their lives together. Then, once married, they would move into their first home. This is why household items are often given as wedding gifts, to furnish your new property that you will move into. It sounds very old-fashioned now, though, doesn't it? It is a far cry from how couples build lives together in the modern world.
The number of couples living together long-term without ever marrying has grown year on year. The ONS (Office for National Statistics) has reported that the proportion of adults who have never married or been in a civil partnership has increased every decade from 26.3% in 1991 to 37.9% in 2021.
Whilst the number of people choosing not to marry has increased, the desire to own our own homes has not waned, and it is with this rise of unmarried couples co-habiting that many may be leaving themselves vulnerable and are not aware of a potential issue that affects them both legally.
What are the potential issues?
Buying a property with another person, a friend or as a couple can often be a desirable option, spreading the cost of the property and the monthly expenses like mortgage payments, utilities, and maintenance with another. It also brings two salaries into the property rather than just you on your own, and of course, romance is not dead just because you are not married. Living with your partner is arguably a more significant commitment to another person than marriage, as it is often easier to get divorced than to financially separate when a property is involved. But if you own a property with someone else, one of the key questions that you need to answer is what will happen to your share if you die? Understanding what stake you hold in a property and how to protect yourself and your family should the worst happen is essential and one of the most overlooked questions. It is not an issue until it sadly becomes an issue.
What are the ways that you can own the property?
Joint tenants: Two or more people own the property in equal shares. If one party should die, their share falls to the surviving party.
Tenants in common: With this option, you could own unequal shares in the property (something that you will have decided when you bought the property), and you can specify what will happen to your shares in your will.
Of course, no one likes to think about the worst happening, but it is important when you own an asset as valuable as a property to plan ahead and make sure that you have something in place.
The problem is that lots of unmarried, co-habiting couples don't know how they own the property, and many of us don't consider making a will until much later in life. Without a will, the law will determine who inherits your property, and this may not reflect your wishes or the needs of your partner or family.
Consider, for a moment, if you and your partner own a property as tenants in common, and you do not have a will leaving your shares to each other if one of you dies. How would you feel if your partner passed away and your partner's parents owned a share in your home? As they would be the next of kin, without a will or details in the ownership of the property, this is a real possibility. You might even have to sell the property to be able to give them their inheritance.
If you own a property on your own but have a long-term partner living with you, you might want to think about protecting them and their rights should the worst happen to you. In this scenario, as you are not married, they would have no inheritance rights for the property and, if something were to happen to you, might be forced to move out of the property by your legal next of kin if you were to die.
There are lots of things to think about, and whilst it might all sound a little morbid, it could save your family a lot of hassle and stress after you've gone if you get it sorted out now. After all, family is who you choose to spend your time with, not a legal construct.
While having a will drawn up is likely the best course of action, it's crucial to seek professional legal advice to ensure it's the right choice for you. Addressing these matters now will not only protect your assets but also provide peace of mind for your loved ones in the future.
If you're considering putting a will in place, we're here to help. Get in touch with our office, and we can recommend a local solicitor who can guide you through the process.