Living Together Advice

People rarely start living together while preparing for what could happen if things go wrong so the following living together advice should help.  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.  However, if you sort out your legal position properly when you start living together it is likely to save a great deal of difficulty and legal costs if you eventually split up.

People assess risk based on immediacy.  The further away a problem is likely to be the less likely they are to deal with it at the time.  This is the same with living together as it is with making a will.  So what are the risks if you do not deal with it at the start?

If there is no statement you may find that the law overrides your intention.  While the problems and concerns of cohabiting couples are virtually indistinguishable from those of married couples or civil partners, the legal remedies are much more limited.

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.

People living together are not entitled to make use of the Capital Gains Tax exemptions that apply to married couples.  Any transfer of assets is therefore likely to be liable to Capital Gains Tax. Also, 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 capital gains or inheritance tax liability. Careful estate planning is required and we are here to help with this.

Where you are splitting up you may find that one of you wants to keep the home for them and the children and the other person wishes this to be sold.  You may also find that liabilities are in your name and the other person is refusing to pay or contribute to these.  These issues can be fraught with difficulties and be very expensive to resolve.

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.

We are here to help 24 hours a day 365 days a year.  Either e-mail us anytime, call (01296) 662770 (Nick) or (01525) 373322 (Richard) during the normal working day or (07973) 424178 in an emergency.