It is known that a very high percentage do not discuss who is entitled
to what if the relationship was to break down and the vast majority have never
heard of cohabitation agreements and that they could protect money that had
invested in a property.
Double
axle
Three are basically two ways in which a property can be split between a
couple.
Joint tenancy
The most common when a married or cohabiting couple own a property is
described as joint tenancy.
In essence the couple own 100 per cent of the property together. Most opt for joint tenancy because they don’t
know that they can divide ownership and wrongly believe they both own a 50 per
cent share of the property. Secondly
some couples are aware they can divide ownership of the property but don’t want
to and is common among married couples, they do not want to acknowledge that
possibly in the future they may divorce.
In the event of divorce the Courts decision considers in the main if
there are children involved and the age of the children is under 18. This could
result in the property being awarded to the wife and the husband paying to keep
the roof over their heads in the form of maintenance payments. If there is no
children involved then the courts try to split the assets in as fair as way as
possible.
Another issue with joint tenancies is that because both parties own 100
per cent of the property either can put the property up for sale at any time.
Tenancy in
common
An agreement entered into by a couple or several individuals and this
agreement clearly states the share of the property that each individual
owns. These have been available to
homeowners for many years but are less common that joint tenancies despite the
increase in cohabiting couples and friends buying together.
A tenancy in common agreement typically splits the share of the property
50/50 unless requested otherwise. There is a greater flexibility with this type
of tenancy in that the amount of the property that each owns can be defined by
the amount of money that each puts in at outset or by the percentage of the
mortgage they pay each month.
It is also not possible for one partner to sell the property without the
agreement of the other under a common tenancy.
An
Outside Edge
A declaration of Trust or Cohabitation agreement is a further way to
avoid unnecessary litigation if there is a break up but worth noting it is only
used in combination with a tenant in common or joint tenancy agreement.
An
Inside edge
Whatever your journey David Jordan Estate
Agents will be with you to offer their years of expertise to guide you
along the way.
Call us on: T: 01323 898414
or email us using the details on our website www.davidjordan.co.uk
