Protecting your Property Investment

When couples begin to think about taking the next step in their relationship, they will often choose to start living together. This is an exciting time for many couples and their families, but one that also presents new challenges and new factors to them to consider. Whether moving into rented accommodation or purchasing property, couples should consider their options and plan as they move forward into their exciting new chapter together. Just as importantly, they might also need to prepare for if their relationship goes wrong.

It is important to consider all aspects and details of a relationship. Careful thought and time spent during the outset can mean that the parties are clear from the start what they're committing to and give them a clear understanding of their ongoing obligations to one another. Below I have set out some headline considerations for couples, to include:

• Arrangements for the parties' housing – this can be relevant if renting or purchasing a property.
• If renting – will this be in their joint or sole names? What will their obligations be to the other, and what happens if the relationship comes to an end?
• If purchasing a property – how will the property be purchased, and how will the parties contribute towards the property's rent or mortgage?
• The parties will need to consider their ongoing contributions to other expenses such as utilities, Council tax, TV, and phone packages.
• Do the parties need to consider obtaining insurance?
• Are there children in the present or from previous relationships living with the parties? If there are children from a previous relationship, is child maintenance payable or being received in relation to children who may live elsewhere (for part or all of the time)?
• Bank accounts and credit cards – consider if the parties should have a joint account and, if so, how will each of them contribute towards such an account? Should they be joint or linked credit cards, and how will these be funded each month?
• Cars – if cars are to be purchased, consider how this will be paid for and in whose name(s) they will be registered. The running costs and any annual insurance should also be considered.
• Other assets – contents/chattels (for example, this could be furniture, pictures, and other items to be used in the property) which either might have owned prior to the relationship. Are these to be retained or shared on separation – do these have an agreed value. If purchasing new items together, consider how this will be paid for and who will pay. If items are to be funded by obtaining credit or other forms of funding, who will be responsible for the ongoing liability, and should the parties consider indemnities?

You can either revise the agreement to reflect what you would wish to happen in the event that the marriage breaks down, or you may wish to convert your cohabitation agreement into a pre-nuptial agreement.

We thoroughly understand the legal issues facing clients on the breakdown of a relationship if they are neither married nor in a civil partnership. We have experience in drawing up cohabitation agreements for clients who wish to set out their arrangements for the future including provision for the division of property and other assets in the event of a separation.

A declaration of trust can be a simple document or something a little more comprehensive, depending on what matters to the owners.

As an example, when two people purchase a property, they may decide to put in place a Declaration of Ownership to set out their property interests. This could be for unequal deposits or one person paying more on a monthly basis. They could, for instance, decide that the property should be held equally or specify unequal proportions.

As this is a legally binding document it can be extremely useful if a disagreement arises between the co-owning parties. A well prepared Declaration of Ownership will help avoid dispute if all factors such as those referred to above have been agreed from the outset.

Buying a property is often one of life's biggest investments, making it important to consider how your assets will be protected and passed on in the future.
Our Private Client team works closely with our Property specialists to provide joined-up advice on Wills, estate planning and wealth protection. Whether you are buying a home with a partner, investing in property or planning for future generations, we can help put the right arrangements in place.
Having an up-to-date Will ensures your assets are distributed according to your wishes and can help avoid uncertainty for your loved ones. We can also advise on inheritance tax planning, trusts and Lasting Powers of Attorney as part of a wider estate planning strategy.
By planning ahead, you can protect your property, provide for your family and gain peace of mind that your affairs are organised for the future.