Is this true?

JimmyTheWig

3plus1 wrote: »

Not strictly true. If your wife doesn't earn owt, you could benefit by putting savings in her name. Up to a certain threshhold, she would pay no tax on the savings and receive interest gross (you'd have to fill out a form with the bank first - this isn't automatic).

Yes, we do that. It's great for stoozing - I get the credit and my wife earns the interest!
But even with that and her self-employed work she doesn't use all her tax-free allowance.

You could also use her ISA allowance.

Not much chance of that with our pittiful long-term savings!


But yes, I see that our situation is better than an unmarried couple.

Lauzy

There is no such thing as common law wife and husband, it is a modern myth created by the media etc.

My advice would be to draw up a pre-cohabitation contract, as you will be cohabitees.
I would also recommend that you get your name on the deeds! If the relationship breaks down you have to use the complicated law of trusts if you are not on the mortgage/deeds as there is no protection afforded to those who do not wish to marry.
There was a recent paper passed through parliament suggesting there is a need for legislation for cohabitees last year but it will NOT be enacted.

Untill there is legislation or new common law cover yourself with a contract drawn up by a solicitor/legal exec

HTH xxxxxx

puffinmuffin

You should definitely get a legal agreement drawn up. I speak from experience! When my ex and i bought a house together, even though we were very happy at the time, we decided to get one done as we had seen some friends go through a horrible split which was made worse by arguing over the house. When we did split it upsetting enough, so i was glad we had already agreed what to do.

Lauzy

Just would like to add to this again,
It depends where you live, I have just read that in Scotland they do have provisions for cohabitants, and the courts have just made their first "palimony" award. BUT nevertheless get the agreement
xx