Family Solicitors Suffolk – Co-habiting on the farm

‘One of the most stressful times in a married couple’s life, next to a death in the family or purchasing a property, is separation and divorce. The situation can be even more difficult for unmarried couples as they are forced to rely on trust and property law, rather than the family provisions available for married couples.

Farming families may also be particularly hard hit. One of the worst possible consequences of an unmarried family member separating from their partner, may be the departing party claiming a share in a farmhouse that has formed part of a farm managed by a family over many generations. Not only can this have a nuisance value, but in farming families, it can strike at the very heart of all that successive generations have tried to build up over many years.

If the departing party can provide evidence of direct financial contributions such as contributing towards a mortgage on the property, or indirect contributions such as paying for an extension, this may be sufficient evidence for that party to establish an interest in a property.

The Law Commission reported on this issue in 2007 and concluded that reform would be needed as the existing law was “uncertain and expensive to apply and… not designed for cohabitants, often [giving] rise to results that are unjust.”  Their report proposed that couples who have lived together for a minimum period (it was envisaged this would be between two and five years) should be eligible for apply for financial provision from each other upon separation. Financial provision was intended to include property transfers, settlements and sales, and potentially lump sums of money and pension sharing orders.

In 2011 the Under-Secretary of State of the Ministry of Justice, Jonathan Djanogly issued a written ministerial statement announcing that the Government had decided not to take forward the Law Commission’s recommendations for reform. This means that as the law currently stands, any individual who owns a property in their sole name, and is part of a couple living together needs to be extremely cautious.

For peace of mind it is wise for cohabiting partners to enter into an agreement which records all aspects of their cohabitation for both the present and the future. These are usually called Cohabitation or Living Together Agreements. If a couple has a properly drafted and executed agreement of this nature, this should effectively safe-guard property rights. The sole owner of a property should be wary of any kind of financial contribution from their partner towards the property or its expenses, without first having a written agreement setting out exactly what that contribution will or will not buy the other party.’

Amand Crowe is a family law solicitor at Barker Gotelee, solicitors in Suffolk

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