One of the most common misconceptions in UK family law is the use of the term “common-law husband” or “common-law wife”.
Many are under the impression that once a couple has lived together for a certain length of time, then they obtain the rights of a married couple.
What many people do not realise is that the term does not have any legal standing whatsoever.
When an unmarried co-habiting couple split, each retains what is in their name. This also includes the house, if it is only held in one person’s name.
Claims can be made under the Trusts of Land and Appointment of Trustees Act 1996 against the other partner’s property if that party believes that they have made a substantial investment into the home, for example an extension, not just decorating or furnishings, or if it can be proved that the partner made significant contributions to the mortgage.
When married couples split, the partner with responsibility for the children can retain a larger share of the house. However, this is not the case when unmarried couples split.
There is no obligation on the higher earner in an unmarried couple to maintain their partner on splitting, apart from any obligation to pay towards the upbringing of their children.
Drawing up a Cohabitation Agreement, outlining exactly what would happen should the couple split, can solve many of these problems. It is advisable to enter into one early, when the couple are still on good terms. In common with most agreements of this type, as long as the agreement is compliant with contract law, then it will be binding.
A Cohabitation Agreement is worth considering if one partner has more wealth than the other. The Agreement needs to be drawn up by a lawyer and comply with contract law.
The first step is for the couple to look at their finances and discuss how they would be divided on splitting up.
it is also an ideal opportunity to arrange parental responsibility orders. If the couple subsequently marry the Agreement becomes void, as the law regarding divorce and the dividing of possessions then takes over.
The binding nature of the Cohabitation Agreement is in sharp contrast to the nature of a Pre-nuptial Agreement. “Pre-nups”, thanks to high profile celebrity weddings, are increasingly in demand. However, many couples may not be aware that such an agreement may not be binding. A court will only support a Pre-nuptial Agreement if it feels it is fair and reasonable.
Any couple looking forward to a future together should consider the uncomfortable possibility that they may split.
Taking some time to consider and plan for this possibility can save cash and distress at a later point.
However, always take legal advice before entering into any contract or agreement.

