'Pre nup like' agreement - options please

rachbc

Another suggestion for tennants in common with a definated share in the property

Mojisola

SomersetSaver wrote: »

As well as the Declaration of Trust/Tenants in Common/Wills changes you could also make a Living Together agreement (which is a bit like a pre-nup - see http://www.advicenow.org.uk/living-together/moving-in/living-together-agreements-html,280,FP.html for more information).
You can then detail arrangements for various things in there - like if one of you has first dibs on who stays in the house if you split up, what happens to any inheritance either of you might get etc. etc.

The website has lots of useful information so worth a look.

Have a good read through the recommended website - you'll probably find other things to discuss that you haven't thought about.

Best to sort things out now and find the solutions aren't needed - because the relationship works out beautifully!

foreign_correspondent

seabright wrote: »

As well as being tenants in common, I would also recommend a Declaration of Trust agreement. As well as basic financial info, you should also set out who will pay for what, if any chores are to be the specific responsibility of a particular partner.

Also, make provision in the agreement for various eventualities. Say you agree to pay bills 50/50, what happens if one of you gets ill and can't work? Does the other pay? if so, are those extra payments a loan or a gift? Similarly, what is one is made redundant, gets pregnant, stops work to look after children or becomes a carer for another relative?

Lastly a provision for what happens on one of your deaths. I would suggest something along the lines of "no sale of the property for 6 months, in which time the survivor has the right to buy the percentage from the deceased's estate.

Hope that helps. PM me if you need more info

I agree with this - also, you may want to think about reviewing it periodically, as your situatuon may change over time, and if a spllit happened, in say, ten years, a lot may have changed - what if, for example, during that decade, you were taken ill, and couldnt work, and the house needed major repairs which your partner paid for, whilst also covering most of the living costs... would her share then increase?

I think she would have a legal case to argue it had, and that things had changed since the declaration of trust (although this is a gray area, where there is an express declaration of trust, since Kernott v Jones) but you want to avoid legal arguments if you can. Over the course of a relationship lots may change (things like ill health, disability and redundancy can crop up, as may the need for unexpected expenditure on the house).

This is quite a complex area of law, and you need to consult a solicitor and get something written up, but as I said above, reviewing this agreement periodically may be sensible.

Also think about what happens when one of you dies - will the other stay in the house or not? Will one partners share pass to the other, or to your own families, or other beneficiaries?

I think this is a difficult area, as you may want to leave your large share of the house to your family - but equally, should you walk under a bus, you may not want your recently bereaved partner to face eviction.... I think there are ways round this (such as writing into your will that in the event of your death, your partner could live in the house for a set period of time etc - but again, you needs legal advice)

Likewise, if your partner leaves, (or dies first, and had left her 10% or whatever, to her family), could you honour this without having to sell the house? What if property prices boom, and that 10% of the value is much more money then it is now? For example, if the house is now worth 100k, her 10% input is £10k. If there is a boom, and in a decade the house is worth £250k, then your partner leaves or dies, you would need be able to pay her, or her family, 10%, equalling £25k - could you free up this, or would the property have to be sold to pay them off?