The myth of common law marriage

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Calum Whelan, solicitor, Paul Crowley & Co Solicitors

Cohabiting couples are on the increase but a number of myths about ‘common law marriage’ have developed meaning that many couples are unaware of their legal entitlements, and research suggests two-thirds of cohabiting couples wrongly believe common law marriage exists when dividing up finances upon separation.

What is the truth about ‘common law marriage’?

The name ‘common law marriage’ implies that cohabiting forms a similar contract with regard to legal privileges, but the term actually has no legal recognition.

If an unmarried couple breaks up, even after decades of living together, there is no requirement for one to support the other financially or to split property.

The only exceptions to this are in Scotland, where some cohabitation rights are recognised, and in the cases of children where cohabiting couples can be expected to support their former partner in certain, but not all, circumstances.

Cohabitation has implications for home rental and ownership

If you don’t own or rent a home together, the partner who does own the property or who is named on the lease is the only one who actually has the automatic right to live there.

Although co-owning a home might seem like the solution, cohabiting couples can run into problems.

One partner can’t sell the home unless the other one agrees and both parties will usually receive a 50/50 split of the sale regardless of who paid the majority of the mortgage unless alternative arrangements are agreed at the time of purchase.

If you’re concerned about what your rights are in your living situation, our solicitors at Paul Crowley & Co can assess your circumstances and offer you confidential advice.

Understand how cohabitation can affect your finances

Cohabitation can prove complicated when it comes to financial matters due to the fact that living together alone does not allow one party to claim ownership over the other’s assets. Anything an individual possessed before living together remains their own property, as well as anything they have gained in their sole name during the relationship, including pensions.

Cohabitation also has implications if one of the couple dies because it doesn’t offer the same protections as marriage. For instance, unless they are named in a will, an individual won’t inherit assets held in the sole name of their partner and will be subject to inheritance tax (if applicable).

There are exceptions in which claims can be made however, so it’s important to speak to a solicitor to seek legal advice.

A written agreement can give you peace of mind

One solution to some of the issues that can arise for unmarried couples who live together is to sign a written cohabitation agreement. This can cover a wide range of areas, such as joint bank accounts and any shared debt, whether that is utility bills, credit cards, or more.

Our experienced family solicitors will be able to provide this service, as well as being able to help you secure other legal protections, such as drafting or updating a will.

If you are concerned about any of the issues discussed above, contact Paul Crowley & Co on 0151 264 7363 or pay a visit to our website at www.paulcrowley.co.uk

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