Property Rights for the Unmarried Clarified?

6th February, Louise Newcombe

 

The highest court in the land gave its judgment in the case of Jones v Kernott on 9th November 2011. It aims to clarify the position on who is entitled to what share of the house when a separating couple are not married or civil partners.

 

The Law Lords are attempting to fill the gap left by the absence of any legislation particularly tailored to financial and property matters in the event that a cohabiting couple separate. Where a couple are married or civil partners, the Matrimonial Causes Act provides a framework for the way in which property should be distributed, regardless of whose name is ‘on the deeds.’ No such luck if you have not tied the knot. Instead we have about 40 years’ worth of cases trying to create principles which apply to this situation, restricted by the limited powers of the judiciary to produce their own law.

 

You may be the sole legal owner of the property you both live in, but cases have set the precedent that your partner could successfully claim a share of the property in certain circumstances. You may have purchased your home before April 1998 in joint names and not worried too much about % shares, or maybe it was bought after April 1998, but you or your conveyancer didn’t tick a box to ‘clarify the beneficial ownership of the property.’ The issue of % shares could crop up now! As Mr Kernott found out, you may have separated years ago, but never sorted out selling the jointly owned home or being formally bought out. The % shares can alter over time depending on what is fair and the course of dealings in the interim.

 

Litigating the issues described is a last resort which requires an investment of time and money. I work in a team of experienced family, conveyancing and civil solicitors who can advise you on the particular circumstances of your situation, whether you are embarking on a house purchase, inviting your partner to live in your home or dealing with an angry ex-partner who is demanding that you buy them out.