New Year's Resolutions and New Beginnings
As 2020 approaches, people start thinking about New Year’s Resolutions. Popular resolutions include going to the gym, taking up a hobby, improving diet and recycling. You may also be thinking of making changes to your personal relationships and may have resolved to ask your partner to move in with you or get married.
Many resolutions ultimately prove unsuccessful so is there anything you should consider, before making a change to your personal relationship, which might increase your chances of success? Establishing expectations at the outset can help avoid problems further down the line. Depending on your particular circumstances you may need to consider the following:
- How will the household outgoings be paid? If they are to be shared, in what proportions?
- Will you set up a joint account for the household expenditure? Will you maintain separate accounts for your personal income and expenditure?
- Who will own the home you live in? If jointly in what proportions?
- Is there anything that might change the interests you and your partner have in the home? If so, do you intend contributions towards the mortgage to be relevant or perhaps contributions towards renovation or improvement works or other forms of contribution? How would you intend this to translate into a share or increased share in the property? The same considerations might apply to other properties that either of you own.
- How will you hold any savings/investments?
- Who is to be responsible for any liabilities?
- What about pensions? Do you want to nominate the other person as a beneficiary?
- Where there are children, how will their care and financial needs be met? If one of you is to take time off work then how will the household outgoings be met?
- What will happen to any inheritances either or you may receive?
You should think about how all of the above would be managed during the relationship and also what would happen in the event of a separation. Taking legal advice on your position can help you and your partner to reach an agreement that can benefit both of you, particularly if the relationship does not last as you would hope.
Many people do not realise that if you are not married you will not acquire financial rights against your partner. Common law marriage does not exist and so if you separate, one person could be left with nothing, unless perhaps there are assets in joint names. This is the case regardless of how long you may have been together, even if you have children. There are separate, complex, rules that relate to property and it is sometimes the case that a person may acquire rights to property, even if it is not in their name. It may also be possible to bring a separate claim on behalf of a child.
If you are married, then you and your spouse will have financial claims against each other which, in principle, could extend to any and all assets. Exactly how this would work in practice depends on the circumstances at the time of divorce.
Although this may seem unromantic, some advance planning can make sure that you and your partner are on the same page. This can reduce the opportunity for conflict and means that if the relationship were to end, you each know what to expect and there are no nasty surprises. A solicitor can prepare a formal, legal agreement which is a Cohabitation Agreement for unmarried couples, a Pre-Nuptial Agreement for married couples or a Civil Partnership Agreement for couples in a civil partnership. Such agreements are technical documents that can protect your interests both during and after a relationship and avoid costly litigation.