Living Together

People rarely start to live together while preparing for what could happen if things go wrong.  Unfortunately, the statistical reality is that at some stage the relationship is likely to break down.  Also, without proper planning if one of you were to die the other may be left in financial difficulty.

The longer a relationship is the more difficult a breakdown can be to deal with. Over time your finances can become entwined.  There may be a joint account and you may have given a guarantee over your partner's loan or business.  You may have also bought a house together.

Where there is a clear statement or agreement at the start of the relationship as to how things should be dealt with at the end this would normally be binding.  Where there are children the court may, however, depart from this.

If there is no statement you may find that the law overrides your intention.  If you are buying a property you should make it clear to the solicitor dealing with it how you want the property to be dealt with if you separate.  If you do not then anyone who has paid a greater proportion of the price or deposit may find they lose the extra money. Your solicitor should ask you how you want to deal with this, but sadly they often fail to do so or people do not understand the significance of the question.

Anything left in a will between people living together does not qualify for the inheritance tax exemptions that apply to spouses.  This means in the event of one of you dying the home may have to be sold to pay off any inheritance tax liability. Careful estate planning is required and we are here to help with this.

If you are about to start living together then we are happy to provide discreet and sensitive advice on how you should arrange your affairs. If you have recently separated we are also able to advise you on how matters should be dealt with.