When it comes to advising unmarried couples and their legal rights to property upon separation, it is important to know that unmarried couples do not share the same luxury as those who are married or in a civil partnership; meaning regardless of the length of the relationship or whether there are children to the relationship, there is no automatic entitlement to make a claim for financial settlement.
However, all hope is not lost. If you are an unmarried couple and the home you lived in throughout your relationship is in your ex-partner’s sole name, you may be able to make a claim regarding your beneficial interest in the home, which will be determined in accordance with The Trusts of Land and Appointment of Trustees Act 1996.
There are two main ways property can be held:-
- As joint ownership as joint tenants or tenants in common
- Sole ownership by one party to the relationship only.
We lived together during our relationship but the house was in my partner’s sole name, do I have any rights?
Disputes regarding beneficial interests in property often arise where a property is solely owned by one cohabitant. The other cohabitant may have an interest where the party who owns the property in their sole name makes a valid express declaration of trust in writing declaring that they hold the property beneficially in trust for themselves and their partner who lives with them, and declaring their respective shares.
If there is no express trust, then you may be able to claim a beneficial interest by establishing either:-
Constructive trust. this may be established when the non-owning cohabitant has contributed to all or part of the purchase price, or the deposit; or where one party spends significantly more time in the home on renovations and essentially increasing value of the home.
Proprietary estoppel. This is a remedy that may be used in cases whereby a non-legal owner may be able to establish that the legal owner has led the non-legal owner, either by words or conduct, to believe they have a beneficial interest in the property.
Can I apply under this provision?
The burden is on the person seeking to establish that the beneficial interests of the parties is different from their legal interests when applying under The Trusts of Land and Appointment of Trustees Act 1996, you must be able to show:-
- Common intention that the property would be owned jointly
- Detrimental reliance on this intention by the non-legal owner.
Court proceedings should be a last resort where it has otherwise not been possible to resolve the dispute.
What are the next steps?
If you are or were in a cohabiting relationship and want to know what your legal rights are to property upon separation, or would like to know whether you can make a claim under TOLATA, get in touch and speak with one of our legal experts today.