Cohabiting or unmarried couples in the UK often discover they have fewer legal rights than they expect when their relationship ends. Unlike married couples, whose finances are dealt with by the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004, cohabitants don’t enjoy the same protections. Senior Solicitor Estella Newbold-Brown explains how cohabitation affects property ownership and examines a landmark case that sheds light on how courts determine who owns what.
What is Cohabitation?
Cohabitation typically refers to a couple who live together in a committed relationship but have not entered into marriage or a civil partnership. For married couples, a divorce (or dissolution in the case of civil partnerships) triggers specific legislation that allows a court to distribute property and finances in a fair way.
Unmarried couples, however, are subject to entirely different legal considerations. Family law specialists at HM & Co. Solicitors handle areas of law specific to cohabitation, but here is an overview of four main scenarios in which property can be owned—and a look at the landmark case of Stack v. Dowden.
The Case of Stack v. Dowden
Stack v. Dowden is a leading case from the House of Lords that clarified how courts determine interests in property after an unmarried couple separates. Previously, the law around beneficial interests was uncertain.
In this case, the couple started their relationship in 1975, and in 1983 Ms Dowden bought a property in her sole name, paying for everything on that property. Mr Stack was self-employed, while Ms Dowden was an electrical engineer. The couple had four children and, in 1993, purchased another property jointly—without a clear declaration of their shares.
- Key Facts:
- Property price: £190,000
- Ms Dowden contributed: £128,830 (from savings and her former property)
- Joint mortgage: £65,025 (Mr Stack covered the interest plus a joint endowment; Ms Dowden had another endowment in her sole name)
- They kept finances mostly separate
Initially, the High Court decided they owned the property in equal shares. However, the House of Lords ruled that Ms Dowden was entitled to 65% while Mr Stack retained 35%. Their choice to maintain largely separate finances over 27 years of cohabitation strongly indicated they never intended an equal share.
Who Owns the Property?
There are two distinct forms of ownership to consider:
- Legal Title: The person(s) registered on the official copy of the title at the Land Registry.
- Beneficial Interests: Those who actually benefit financially from the property. More than one person can have an interest, and shares can differ from the legal title.
Four Main Ownership Scenarios
Joint Purchase with a Signed Declaration of Trust
Here, the transfer document clearly specifies how the equity (or net proceeds) will be shared upon sale or separation.Joint Purchase with a Declaration of Trust in the Transfer, But Unsigned
In some cases, the document references beneficial interests, yet the parties never formally sign it.Joint Purchase with No Mention of Beneficial Interests, But an Agreement Exists
The document is silent, but both parties reached a clear agreement—potentially evidenced by emails, texts, or other documentation—about their shares.Joint Purchase with No Mention of Beneficial Interests, and No Agreement
Neither the transfer document nor any other record clarifies how the property is shared. This typically leads to disputes and requires the court to look at the parties’ conduct to infer any intended share.
Need More Advice?
Navigating property ownership as a cohabiting couple can be complicated, particularly if your relationship ends or one party dies. At HM & Co. Solicitors, we can advise on:
- Drawing up a cohabitation agreement to protect each partner’s interests
- Understanding beneficial ownership when property is in one or both names
- Handling disputes and property claims if the relationship breaks down
- Evaluating whether your arrangement resembles any of the four ownership scenarios above
Contact HM & Co. Solicitors
- Address: 186 Lower Road, Surrey Quays, London SE16 2UN
- Telephone: 02071128180
- Email: info@hmsolicitorsltd.com
Our experienced family law solicitors are here to guide you through property issues, helping you feel secure and properly informed about who owns what when you cohabit.
