Living Together & Cohabiting Couples

Co-ownership

Cohabitants should seek legal advice when purchasing a home, entering into mortgage agreements and other joint financial ventures which might affect them in the event of a dispute. Co-buyers of a property should be aware of the difference between a Joint Tenancy and a Tenancy in Common.

What is the difference between a Joint Tenancy and a Tenancy in Common?

Joint Tenancy

Both parties will hold the property equally and there will be no distinct shares of ownership. Upon the death of a party, the survivor will automatically become the sole owner of the party regardless of what is said in will.

Tenants in Common

Both parties each hold a distinct share in the property and can leave their share under a will or, in the absence of a will, the intestacy rules will apply. It is strongly recommended that if you own the property in unequal shares or have contributed unequally to the purchase price that this is recorded in a Trust Deed to clearly identify each party’s legal & beneficial interest in the property.

Our family law team can help you make the appropriate declarations at the time of purchase and to ensure clarity for both parties in the event of disputes.

Occupation

If a non-legal owner does not have any legal interest in the property he or she will have no right to remain there and may be excluded by the owner at any time on giving reasonable notice. Having said that, there are several ways to protect occupation rights for non-legal owners.

Many of the problems faced by couples at the end of a cohabitation relationship can be addressed during the relationship by the use of a deed of trust or cohabitation agreement.

Cohabitation or Living Together Agreements

If you and your partner are planning to live together we can help you and your partner draw up a cohabitation agreement.

A cohabitation agreement will apply while you are living together and will establish rights on the breakdown of a relationship. It will set out agreements about your finances if you subsequently separate.

This is still a relatively new area of law and there is no decision on the validity of such agreements. However, the courts have indicated that there is nothing contrary to public policy in a cohabitation agreement and more couples are now seeking such agreements.

To ensure that the agreement has the best chance of being upheld by a court, it is advisable that each party obtains independent legal advice and provide full financial disclosure.

Fixed Fees for Cohabitation Agreement