If you're co-habiting but don't own the property you share, you may still be entitled to an interest in the property, and this is known as beneficial ownership. Our experienced family lawyers could help you to establish your property rights in the event of a split.
The issue of beneficial ownership arises more in cases where a couple are not married. The phrase Beneficial Interest describes the situation where one cohabitee in a relationship has the right to occupy their home or a right to share in the equity in the property even where the other partner is the legal owner.
This usually becomes an issue when a relationship ends and the legal owner of the property asks the other person to leave, even if that person has contributed significantly to things such as purchase costs, mortgage costs and home improvement costs over a period of years.
Perhaps surprisingly, this situation can even arise when married couples separate or divorce, as well as when cohabiting couples split up, but married people generally have protection under the law.
What is beneficial interest?
For a couple who are not married, there are three ways in which a beneficial interest can arise:
Express declaration of interest: This is when the legal owner and their co-habitee have signed a trust deed declaring the share that each has in the property.
Resulting or implied trust: This is when there is an implication that the couple agreed to share an interest in the property, perhaps because the non-owner has paid significant amounts towards home improvements
Constructive trust: This is when a court concludes that there was a clear intention or agreement that the non-owning party would gain a beneficial in a property
The Express Declaration of Interest gives the greatest protection to a non-owner, whilst the other two options rely on having to prove intentions or agreements often in court if they cannot agree.
For this reason, our family lawyers will usually suggest that cohabiting couples have an Express Declaration of Trust regarding property ownership, and that they also discuss and agree others matters, such as ownership of cars, as part of a Cohabitation Agreement.
The best solicitors to fight your corner! I struggled with a nasty unmarried couple dispute alone for over a year before biting the bullet and paying for proper legal support. I had one previous experience with a cheaper less well known solicitor and I just felt completely let down and not a priority. But with S&G - from start to finish, I felt supported 100% and valued.
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Matters were dealt with efficiently with a view to keeping costs to a realistic level and I am well satisfied with the final settlement she managed to achieve on my behalf.
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For anyone needing help with family issues I could not recommend Slater and Gordon highly enough. I always had the feeling I had the best looking after my interests and they certainly didn't disappoint.
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You should also note that while judges will often be guided by them, cohabitation agreements aren't 100% binding in law. To protect you both as fully as possible, our family law experts are also able to prepare your cohabitation agreement as a formal legal deed to indicate to the court that you both want to be bound by it.
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Frequently asked questions about beneficial ownership of property
What can a cohabitant with a beneficial interest do?
A cohabitant with a beneficial interest may have the authority to:
Live in the property
Prevent the property from being sold or disposed of
Receive a share of the profit if the property is sold
Receive a share of the income if the property is rented
How can cohabiting couples avoid beneficial interest issues arising?
Issues with beneficial ownership of a property can be a challenge, so it is best to consider how such issues can be avoided in the case of a relationship break down. To avoid conflict, and expensive litigation, cohabiting couples should consider:
The best solicitors to fight your corner! I struggled with a nasty unmarried couple dispute alone for over a year before biting the bullet and paying for proper legal support. I had one previous experience with a cheaper less well known solicitor and I just felt completely let down and not a priority. But with S&G - from start to finish, I felt supported 100% and valued. B L (family and personal matters case)
Matters were dealt with efficiently with a view to keeping costs to a realistic level and I am well satisfied with the final settlement she managed to achieve on my behalf. J B (family and personal matters case)
For anyone needing help with family issues I could not recommend Slater and Gordon highly enough. I always had the feeling I had the best looking after my interests and they certainly didn't disappoint. C I (family and personal matters case)