When couples buy a property, they usually assume a rosy future together. They do not want to discuss the grim prospect of a property dispute on splitting up.

However, when a dispute between cohabitees reaches the courts, the judge may infer or impute (legal terms the court likes to use!) that the couple had a ‘common intention’ at the time they moved in. The judge looks at the subsequent actions as evidence, eg, if cohabitee A is the sole legal owner but cohabitee B paid all the mortgage repayments, cohabitee B may be granted a beneficial interest in the property.

Property held in sole name of one cohabitee

A cohabitee whose name is not on the legal title has a more up hill challenge to claim a beneficial interest in the property. They will only succeed if;

1. There is a declaration of trust in writing confirming their share
2. They contributed to the purchase of the property, or
3. There is evidence that the couple had ‘common intention’ to share the ownership and that, crucially, they acted to their detriment on this basis.

Property held in joint names

In this case, the couple clearly intended to share in the ownership, but in what proportions? How do you know?

1. The first step is to look at the TR1 signed when the property was bought. Section 10 may confirm the beneficial interest of each joint owner.
2. Next steps are to seek an agreement, and  
3. seek legal advice on the possibility of a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

If you have any questions relating to the above article please do not hesitate to contact us, our team of expert solicitors are on hand to help.