What you put in you will get out?
Just because a contribution has been made to purchase a property does not mean that that the party who made the investment will automatically receive that sum back if a cohabiting relationship breaks down. In the first instance the information recorded on the TR1 document which is completed when the property is purchased will be considered.
A Declaration of Trust can assist by setting out the parties’ intentions and clarify how the percentage of any share has been calculated, so that if there is any query in the future there is a written record of why the TR1 has been completed in the way which it has. This can also help to protect other parties such as parents or grandparents who have helped their child or grandchild on to the property ladder by setting out their contribution to fund the purchase of the property.
For further information about separation and cohabiting please contact our Family & Matrimonial Law Team at email@example.com or call 01279 712556.