Buying a property for the first time is such an exciting and pivotal moment in one’s life and sometimes it is the natural next step in your life with a significant other, cementing your relationship by purchasing a home together. Some say that taking out a joint mortgage with a partner is actually a bigger commitment to one another than entering a marriage or civil partnership as you are binding your finances together into one asset (although perhaps not quite as romantic).

As an unmarried couple when purchasing a property together or indeed even moving in with one another, it is important that you are aware of the legal consequences that this can have. Where two individuals live together and are in a relationship but not married, they are deemed to be “cohabitating”. With lockdown bringing a focus on people’s living arrangements, many more couples have decided to move in with one another. In Scotland, cohabitants have a right to a financial claim which can become available to them upon separation, which is not possible in other jurisdictions. Often, issues arise when a couple decide to separate, and property has been purchased in joint names (whether they had made equal contributions to the price or not). Without any type of agreement in place this can cause disputes.

Of course, when you purchase a property with your significant other or decide to move in with one another you don’t typically plan for that arrangement to end in dispute, but it is sensible to safeguard your position at the time to prevent any issues going forward. There is a real benefit in entering into a Cohabitation Agreement when you move in or buy a property with a partner to cater for future financial claims and provide much needed certainty.

A Cohabitation Agreement can set out ongoing arrangements agreed between both parties on matters such as (a) who will pay the bills and mortgage and how this will be split between you, (b) in the event of a sale, how sale proceeds will be divided, (c) financial support for each party in the event you separate and (d) whether cohabitation rights would apply.

By discussing this with your partner and having an agreement set up, it means there is clear communication between both of you going forward and a document that you can refer to if in the event, a dispute arose. Ideally, you will never have to refer to it but if it turns out you do, then you will be glad you agreed to the terms before things had the potential to get confused.

Members of our property team and family law team work closely together to ensure you have the best arrangements set up when purchasing a property together. If you are looking to purchase a property or have changed your living arrangements recently, get in touch and we can discuss the best available options to you going forward.