Couples putting themselves at risk when buying a house with partner - report
Unmarried couples do not share the same legal rights as those who are wedlocked - yet two in three people who are looking to buy a house aren 't aware of the rules.
That 's according to new research by Birmingham law firm Shakespeare Martineau has revealed.
Nearly half (47 per cent) of those surveyed incorrectly believe a common law spouse exists, with a further 20 per cent unsure of the difference in rights - meaning 67 per cent of homeowners are at risk of losing out on what is rightfully theirs through a lack of knowledge.
On behalf of Shakespeare Martineau, Censuswide surveyed more than 500 first and second-time buyers who are planning to purchase a property within the next 12 months.
The results also highlighted that a significant number of people incorrectly believe they will automatically get a share in a property owned by their partner if they have lived there for two years or paid the bills.
Helen Bowns (pictured), family partner at Shakespeare Martineau, said: “Regardless of what people read or hear, there is no such thing as a common law spouse. Unmarried couples who live together are merely cohabitees and do not have the same rights as married or civil partnered couples. Even if they have lived under the same roof for 50 years, the court could treat them in the same way as friends living together.
“In the event of a relationship breakdown, the less well-off party is at risk as they will not be able to make a claim for either maintenance, capital or pension provision.
“They can only claim their share of joint property and money, but anything held in the sole name of the other party is theirs to keep. The only way to get around this is to enter into a marriage or a civil partnership, or create a cohabitation agreement.
“Being unmarried or not entering into a civil partnership also means neither of you are entitled to receive each other 's assets on your respective deaths. If you want to benefit each other, you must prepare wills to state this. ”
More than one in three respondents (34 per cent) wrongly believe they will automatically get a share in their partner 's property if they lived with them for two years - with a further 19 per cent unsure either way.
And almost half of people (41 per cent) incorrectly believe that paying the bills means they will get a share in a property owned by their partner.
A further 15 per cent aren 't sure - meaning 56 per cent do not have sufficient knowledge.
To avoid unwanted conflict further down the line, a cohabitation agreement - which sets out what will happen to joint and separate assets in the event of a break-up - should be the top priority for all unmarried couples planning to move in together.
However, 33 per cent of people are putting themselves at risk by not committing to making a cohabitee agreement with their partner before or after a house purchase.
Almost 60 per cent of those looking to buy a home do not realise that if they die and they are joint tenants with their partner, their partner will automatically inherit the house - regardless of what it states in their will.
Of those who were surveyed, men were more likely to both obtain legal advice before moving in with their partner and make a cohabitee agreement during a house purchase (72 per cent of men compared to 65 per cent of women, and 70 per cent of men compared to 64 per cent of women, respectively).
Cohabiting couples have very few legal rights compared to those who are married or in a civil partnership, and this means the risks can be high if the right arrangements are not in place.
While getting married isn 't for everyone, arranging legal protection if something was to go wrong should be a top priority.
Helen said: “In the long-run, it will cost more to argue about it in litigation than to pay the costs of having an agreement in place.
“Until the law catches up with some of the modern ways of living, protecting your interests in the event of a relationship breakdown must be considered carefully. ”