A common scenario in court proceedings is that of the co-habiting couple who cannot agree on how their former home should be divided between them.
Married couples who split up have a number of remedies available to them when dividing the assets between them. However, unmarried couples do not have a wide range of statutory remedies and so often have to resort to the courts if they cannot reach agreement.
In 1987, a couple moved into a property which was funded by the man in the relationship, Mr Ely. He and his partner, Ms Robson, had two children and over the years elderly relatives lived with them at different times. Their relationship broke down and in 2007, Mr Ely brought a possession claim against Ms Robson.
During the proceedings she claimed that the house was theirs in equal shares pursuant to an agreement that the two of them reached in a car park during the proceedings. No one else was at this meeting. The court believed Mr Ely's version of events and held that she was only entitled to a 20% share in the property and the remaining 80% was Mr Ely's.
Ms Robson appealed, but her appeal was unsuccessful.
The facts of the case were somewhat complex but the case is yet another reminder of the importance of co-habiting couples accurately reflecting the agreement relating to their property in a declaration of trust. A failure to do so may mean that the courts have to decide the destination of the property.
To discuss this or any other property related issue, contact us.