Living together

Moving in with your partner is a significant step in any relationship, showing that the levels of commitment to each other are deepening. However, there are some common pitfalls that need to be considered.

This new chapter in a shared future brings some major and far-reaching decisions that need to be made. The purchase of a new home, for example, is singularly the biggest transaction most people make in their lives. The steps you take now may have significant consequences should the chapter fail to have a happy ending.

Legal myth

Prudent couples should take steps to protect the cash and assets they bring into a relationship. But first, let's put to bed a common misconception.

There is no legal concept of a 'common law marriage'. Even if you have been living with your partner for 60 years, you will not be married under common law. This means that you will not automatically be entitled to any financial provision if you split up, even if you are engaged to be married or have been living together for years.

Whose house?

If you and your partner decide to buy a property and move in together, it is critical that you are clear as to how you hold the property and who will be entitled to the proceeds on a sale, as this often causes the most difficulties later on if the relationship breaks down.

If you have contributed more to the purchase price or the bank of mum and dad have paid the deposit, you may want to consider buying as 'tenants in common', as well as entering into a 'declaration of trust'. This will establish exactly what percentage of the beneficial interest you and your partner respectively have in the property. This is a way to ensure that you receive your fair share if you sell the property at a later date.

If the property is held in joint names and there is no declaration of trust, it will normally be assumed that you and your partner intended to share the proceeds of sale in the property equally. If this is not what you intend, then it is important to establish this at the outset by way of a declaration of trust.

If, on the other hand, your partner contributes more to the purchase price than you but it is agreed that you will contribute subsequently through mortgage payments, then this agreement will also need to be reflected in a declaration of trust.

If the property is held in your partner's sole name and there is no declaration of trust, you will need to prove that there was a common agreement for you to have a beneficial interest in the property.