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Separating as an Unmarried Couple: What Happens to Assets?

· 22 min

Note: The following scenario is fictional and used for illustration.

Emma, 38, lived with her partner Marcus for 11 years in a house he owned in Leeds. She paid half the mortgage every month—£680 transferred like clockwork on the first of every month. When they renovated the kitchen and bathroom, Emma contributed £22,000 from her savings.

When Marcus ended the relationship last year, Emma discovered she had no legal right to any share of the £340,000 property. Marcus owned the house before they met. Without a declaration of trust documenting Emma's contributions, the law treated her £22,000 and 11 years of mortgage payments as rent.

Emma assumed that after more than a decade together, she'd be treated like a spouse. She was wrong.

In England and Wales, there's no such thing as "common law marriage." Research shows that 47% of the population wrongly believe that cohabitants have rights equivalent to married couples. The reality? When unmarried couples separate, the law treats you as strangers regardless of how long you've lived together.

This guide explains exactly what happens to property, savings, debts, and possessions when unmarried couples separate in the UK, what legal options you have, and how to protect yourself going forward.

Table of Contents

Why Unmarried Couples Have No Automatic Rights in the UK

The "common law marriage" myth is one of the most dangerous legal misconceptions in the UK. Research shows that 47% of people believe it gives them legal rights, rising to 55% among cohabiting couples with children.

Common law marriage did exist in England—before 1753. It hasn't existed for 272 years.

Today, unmarried partners are treated as legal strangers regardless of relationship duration. Living together for 25 years gives you the same legal rights as living together for 25 days: absolutely none.

Sarah and Tom lived together for 18 years and raised three children. When they separated, Sarah discovered she had zero claim to Tom's £450,000 home. Her name wasn't on the deeds. She couldn't prove she'd made financial contributions because Tom paid the mortgage while she stayed home with the children.

Compare this to a married couple divorcing after just two years. Courts have the power to order asset division regardless of whose name appears on property deeds or bank accounts. They consider contributions—financial and non-financial—to the marriage and family.

Unmarried couples have none of these protections.

What married couples get that you don't:

  • Automatic inheritance rights under intestacy rules
  • Rights to claim maintenance from an ex-spouse
  • Pension sharing orders
  • Property division regardless of legal ownership
  • Financial provision orders considering all contributions to the relationship

The ONS reports that 3.4 million families in the UK are cohabiting couples, yet most have no idea they're legally vulnerable. When these relationships end, the emotional devastation is compounded by financial shock.

What Happens to Property When Unmarried Couples Separate

Property division depends entirely on one question: whose name is on the Land Registry title deeds?

There are three scenarios:

Scenario 1: Joint Tenants (Both Names on Deeds)

You each own 50% automatically unless you have a declaration of trust specifying different shares. When you separate, you're each entitled to half the equity.

David and Sophie bought their flat together as joint tenants. David paid a £60,000 deposit from his inheritance. Sophie contributed nothing upfront. Because they held the property as joint tenants without a declaration of trust, they each own exactly 50%—regardless of David's larger initial contribution.

Scenario 2: One Partner's Name Only

The person on the deeds owns 100% of the property. The other partner has no automatic right to any share.

James owns a £300,000 flat in Manchester. His girlfriend Lucy moved in six years ago and paid £800 monthly, which James characterized as "rent." When they separated, Lucy received nothing. Legally, she was his tenant—not his partner.

Scenario 3: Tenants in Common

Each person owns their specified percentage share. This is typically documented in a declaration of trust.

Rebecca and Michael bought their house as tenants in common with a 70/30 split. Rebecca contributed a £70,000 deposit; Michael contributed £30,000. When they separated, Rebecca received 70% of the equity and Michael received 30%—exactly as documented.

Why emotional investment means nothing legally:

Supporting your partner's career, raising children together, maintaining the home, or providing emotional support creates no legal entitlement to property. Only documented financial contributions matter.

If you're not on the deeds and want to claim a share, you must prove "beneficial interest"—and that requires expensive court proceedings.

Property Ownership: Who Gets What?

Property Ownership What Happens on Separation What You Need to Prove
Joint tenants (both names) 50/50 automatic split Nothing—it's automatic
One name only Owner keeps 100% Financial contributions/beneficial interest
Tenants in common Each takes specified share Nothing—it's documented

One exception exists: occupation orders under the Family Law Act 1996. These allow you to stay in the property temporarily during separation, even if it's not in your name. However, occupation orders are temporary measures—not ownership rights.

Understanding TOLATA Claims and Beneficial Interest

TOLATA stands for the Trusts of Land and Appointment of Trustees Act 1996. Section 14 allows you to apply to court to establish your beneficial interest in property you don't legally own.

There are two types of beneficial interest:

Resulting Trust: You made direct financial contributions to acquiring the property—deposit money, mortgage payments, or substantial improvements.

Constructive Trust: The legal owner made promises or agreements that you'd share ownership, and you relied on those promises to your detriment.

Rebecca paid £40,000 toward the deposit on her boyfriend's house and contributed half the mortgage payments for five years. She kept meticulous bank records showing every transfer. When her boyfriend refused to acknowledge her share, Rebecca had strong evidence for a TOLATA claim based on resulting trust.

Contrast this with Amy's situation. She paid utilities, groceries, and household bills while her boyfriend paid the mortgage. Legally, Amy made no contribution to acquiring the property. She has no valid TOLATA claim.

What counts as financial contribution:

  • Deposit money toward purchase
  • Regular mortgage payments with proof of payment
  • Money for substantial home improvements (new kitchen, extension, structural repairs)
  • Payments that directly reduced the debt secured on the property

What doesn't count:

  • Household bills and utilities
  • Groceries and day-to-day expenses
  • Decorating and minor improvements
  • Emotional support or domestic labor
  • Verbal agreements without documentary evidence

Constructive trusts are harder to prove. Michael told Emma repeatedly that she "owned half the house." His name was solely on the deeds. Unless Emma can prove she relied on Michael's promises to make financial contributions she wouldn't otherwise have made, her claim will fail.

The burden of proof is entirely on you. You need bank statements, receipts, written agreements, and contemporaneous evidence. "We had an understanding" won't succeed in court.

The Reality of TOLATA Claims:

TOLATA proceedings are expensive, time-consuming, and uncertain. Typical legal fees range from £10,000 to £25,000. The process takes 12 to 18 months from application to final hearing.

Recent case law has added complexity. In Nilsson v Cynberg [2024] EWHC 2164 (Ch), the court held that an express declaration of trust could be overridden by a subsequent common intention constructive trust based on the couple's conduct and conversations after separating. This introduces uncertainty even when written declarations exist.

From October 2024, you're expected to attempt mediation before issuing court proceedings. Refusing mediation without good reason can result in cost sanctions.

TOLATA claims are expensive, time-consuming, and uncertain. Courts require strong documentary evidence—verbal agreements and assumptions aren't enough. Before considering legal action, attempt mediation to avoid potential cost sanctions introduced in October 2024.

How Declarations of Trust Protect Your Property Rights

A declaration of trust is a legally binding document specifying each person's share of a property and how contributions affect those shares.

You need one when buying property with unequal deposits or contributions. The declaration prevents disputes by documenting ownership percentages from the start.

Sophie contributed a £50,000 deposit from her inheritance. Her partner Jake contributed £10,000. Their declaration of trust specified Sophie owned 70% and Jake owned 30%. When they separated three years later, there was no dispute—the shares were already documented.

Without that declaration of trust, Sophie and Jake would have defaulted to 50/50 ownership as joint tenants despite their vastly different contributions.

A typical declaration of trust specifies:

  • Each person's ownership percentage
  • What happens if the property is sold
  • How ongoing mortgage payments affect shares
  • Whether contributions change ownership ratios over time
  • Arrangements if one person wants to buy out the other

Cost: Typically £500 to £1,500 plus VAT, depending on complexity.

Historically, courts treated declarations of trust as conclusive evidence of beneficial shares. The Nilsson v Cynberg case in 2024 introduced uncertainty. The court allowed deviation from an express declaration based on the couple's subsequent conversations and conduct about ownership.

This doesn't mean declarations of trust are worthless. It means you should:

  • Ensure both parties understand and agree to the terms
  • Get independent legal advice before signing
  • Review and update the declaration if circumstances change significantly
  • Avoid contradicting the declaration in later conversations or actions

Can you change a declaration of trust? Yes, but both parties must agree. If one party refuses, you'd need a court application—which brings you back to TOLATA proceedings.

What happens if you marry after creating a declaration of trust? The declaration continues to apply unless you explicitly agree otherwise. Marriage doesn't automatically override pre-existing property arrangements.

Should You Get a Declaration of Trust?

If you're buying property with an unmarried partner and contributing unequal amounts, a declaration of trust is essential. Without one, you default to 50/50 ownership regardless of who paid what.

Cost: £500–£1,500.

Cost of TOLATA court case to establish your share later: £10,000–£25,000.

What Happens to Bank Accounts, Savings, and Debts

Joint bank accounts are typically split 50/50 on separation unless you can prove unequal contributions. However, here's the problem: either account holder can withdraw the entire balance.

Rachel and Tom had £8,000 in their joint account. Tom withdrew the full £8,000 the day after they argued. Legally, he had every right to do so—both names were on the account. Rachel lost £4,000 of her money and had to pursue civil proceedings to recover it.

Immediate Actions for Joint Accounts:

  1. Contact your bank today to notify them of the separation
  2. Request the account be frozen or converted to dual-signature requirement
  3. Transfer your portion to a sole account in your name only
  4. Close joint credit cards and open individual accounts
  5. Remove your partner as an authorized user on your sole accounts

Sole bank accounts belong entirely to the named account holder. Your ex-partner has no claim regardless of who contributed the money or how it was used during the relationship.

Joint savings accounts and ISAs follow the same principle: typically split equally unless you prove unequal contributions. The person who acts fastest often secures the money.

What About Debts?

Joint debts—loans, credit cards, mortgages—leave both parties legally liable regardless of who spent the money or benefited from it.

Emma and David took out a £15,000 joint loan to buy a car. David kept the car when they separated. Emma remains liable for half the debt even though David drives the car daily.

This is enforceable. If David stops paying, the lender can pursue Emma for the full outstanding balance.

Sole debts are the named person's responsibility only. If your partner ran up £3,000 on a credit card in their name—even if they bought things for "the relationship"—you're not liable.

One dangerous exception: credit cards in your name that you allowed your partner to use. You're legally responsible for all spending on cards bearing your name, regardless of who physically spent the money.

The problem with informal arrangements: "He'll pay his half of the loan" isn't legally enforceable. Get written agreements, notify lenders of the separation, and consider refinancing joint debts into sole names where possible.

Dealing with Possessions, Furniture, and Personal Property

The legal principle is brutally simple: whoever bought it owns it, unless it was a gift.

That £3,000 sofa you chose together? If it was purchased on your partner's credit card, it legally belongs to them—not you. Your emotional attachment and the fact you picked the fabric are irrelevant.

Joint purchases should be split or negotiated based on who uses or needs the item more. In practice, this often requires compromise or mediation.

Gifts During the Relationship:

Gifts belong to the recipient regardless of value. If your partner gave you a £5,000 necklace for your birthday, it's yours. The only exception is engagement rings, which can sometimes be reclaimed if the engagement is broken.

Family heirlooms belong to the family member's partner regardless of your sentimental attachment. If your partner's mother gave you great-grandmother's ring, you must return it to your partner's family—it wasn't your family's heirloom to give you.

The Pet Problem:

Pets are legally treated as property, not like children. Whoever bought or registered the pet owns them.

Sarah found a rescue dog, cared for it daily, and considered it "her baby." Her boyfriend registered the dog at the vet and with the microchip company in his name. When they separated, the dog legally belonged to the boyfriend—regardless of Sarah's emotional bond.

This feels cruel, but it's the law.

What to Do About Possession Disputes:

Mediation costs £140 to £300 per session and often resolves disputes faster and cheaper than court. Legal fees for contested possession claims can exceed £5,000.

Police won't intervene in "civil disputes" about sofas, televisions, or who owns the dining table. It's your responsibility to negotiate or pursue civil remedies.

The practical reality: most separating couples split possessions informally, keeping what they personally use or value most. When this fails, mediation is usually cheaper and faster than litigation.

Keep receipts and records. When you've lived together for years, proving who paid for what becomes nearly impossible. The person with documentation usually wins.

Financial Arrangements for Children After Separation

Good news: child maintenance laws are identical for married and unmarried parents.

The Child Maintenance Service (CMS) calculates mandatory payments based on the non-resident parent's income:

  • 12% of gross weekly income for one child
  • 16% for two children
  • 19% for three or more children

Andrew earns £45,000 per year (approximately £865 per week gross). He pays 12% for his one child: £104 per week, or approximately £450 per month.

The non-resident parent must pay child maintenance regardless of their relationship with the other parent. Refusing contact doesn't eliminate financial responsibility.

Schedule 1 of the Children Act 1989:

Schedule 1 allows the parent caring for children to claim housing costs, lump sums, or property settlements for the children's benefit—not for their own benefit.

What Schedule 1 covers:

  • Deposit for rental property to house the children
  • School fees and educational expenses
  • Disability-related expenses for the children
  • A vehicle for school runs and transporting children
  • Costs directly related to the children's welfare

Critical limitation: Schedule 1 provision is for the child. When the child turns 18 or completes full-time education, property or assets revert to the paying parent.

Claire obtained a Schedule 1 order requiring her ex-partner to pay a £35,000 deposit for a rental property to house their two children. When the youngest child turned 18, the £35,000 reverted to the father—not to Claire.

Schedule 1 is not a back-door way to claim property or maintenance for yourself.

Parental Responsibility:

Unmarried fathers who aren't on the birth certificate have no automatic parental responsibility. This means no legal right to make decisions about education, medical care, or where the child lives.

Get your name on the birth certificate or apply for a parental responsibility order before claiming custody rights.

Child Maintenance vs. Property Claims: You cannot claim maintenance for yourself from an ex-partner if you're unmarried—but you can claim for your children. Schedule 1 applications can secure housing deposits, school fees, and other child-related costs, but these benefits revert to the paying parent once children turn 18.

Whether you're happily cohabiting or facing separation, four legal documents protect unmarried couples:

1. Cohabitation Agreement (£500–£1,500)

A cohabitation agreement outlines financial arrangements, property rights, and what happens on separation or death. It's not automatically legally binding like a marriage, but courts will consider it evidence of your intentions.

What to include:

  • How household expenses are split
  • Property ownership percentages
  • What happens to jointly purchased items on separation
  • Arrangements if one partner stops working to care for children
  • Inheritance intentions

Hannah and Marcus created a cohabitation agreement specifying a 60/40 property split reflecting Hannah's larger deposit. It included a clause that if they had children, the primary carer would keep the family home if they separated. When they split three years later with one child, the agreement prevented a costly legal battle.

Cohabitation agreements don't help if signed under duress, containing grossly unfair provisions, or if either party didn't get independent legal advice.

2. Declaration of Trust (£500+ VAT)

Covered in detail earlier. Essential when buying property with unequal contributions.

3. Will (£99.99 with WUHLD vs. £650+ with a Solicitor)

This is critical. Without a will, unmarried partners inherit absolutely nothing.

David and Emma lived together for 15 years. When David died unexpectedly without a will, Emma inherited nothing. David's entire estate—the home they shared, his savings, his possessions—went to his parents under intestacy rules.

Emma was left homeless and penniless after 15 years together. A £99.99 will would have prevented this.

4. Lasting Power of Attorney (£82 Registration Fee Each)

This allows your partner to make medical and financial decisions if you're incapacitated. Without it, your partner has no legal right to access your medical information, pay your bills, or make treatment decisions—even if you've lived together for decades.

Additional Protections:

  • Keep separate bank accounts with one joint account for shared expenses
  • Document everything: keep receipts, bank statements, and written agreements about who pays for what
  • Review arrangements annually or when circumstances change significantly
  • Get independent legal advice before signing binding agreements

Lisa had been paying half of her boyfriend's mortgage for three years when they separated. Because she kept meticulous bank records showing monthly transfers labeled "mortgage contribution," she had strong evidence for a TOLATA claim. Without those records, proving her contributions would have been nearly impossible.

What the 2025 Cohabitation Reforms Could Mean

There is growing political momentum for cohabitation law reform in England and Wales. Scotland implemented reforms through the Family Law (Scotland) Act 2006, allowing cohabitants to claim financial provision on separation.

The Law Commission published comprehensive recommendations in 2007 proposing "qualifying cohabitants" (couples living together for two years or with children) should be eligible for financial claims on separation. Eighteen years later, these recommendations remain unimplemented.

Recent political discussion has renewed focus on cohabitation rights, with some MPs and family law organizations calling for urgent reform. However, no formal government consultation has been announced, and there's no confirmed timeline for legislative change.

What reforms might include:

  • Automatic property rights after a qualifying period of cohabitation
  • Rights to claim maintenance from an ex-partner
  • Pension sharing on separation
  • Inheritance rights similar to married couples

Potential models exist. Under Scotland's Family Law Act 2006, cohabitants can apply for financial provision if the relationship ends. Courts consider economic advantages or disadvantages, financial arrangements, and whether one partner made contributions (financial or non-financial) that benefited the other.

However, there's no guarantee England and Wales will adopt Scottish-style reforms. Even if legislation passes, implementation could take years.

Critically, any reforms will not be retrospective. Current separations are governed by existing law with no automatic property or financial rights for unmarried partners.

Timeline reality: consultation in 2025, legislation drafting, parliamentary approval, and implementation means reforms are unlikely before 2027 or 2028 at the earliest—and that assumes political will survives.

Don't wait for reforms. Protect yourself now with a cohabitation agreement, declaration of trust, and will.

The ONS reports 3.4 million cohabiting couple families in the UK. Research shows 55% of cohabiting parents wrongly believe they already have spousal rights. The gap between perception and legal reality leaves millions vulnerable.

Hope for future reform, but act on current reality.

Frequently Asked Questions

Q: What happens to jointly owned property when unmarried couples separate?

A: If you're joint tenants, you each own 50% unless you have a declaration of trust specifying different shares. If one partner solely owns the property, the other must prove a beneficial interest through financial contributions or a TOLATA claim to get any share. Unlike married couples, there's no automatic right to property division.

Q: Can I claim my partner's assets if we've lived together for years?

A: No. In England and Wales, "common law marriage" doesn't exist regardless of how long you've lived together. You have no automatic right to your partner's property, savings, investments, or pension—even after decades of cohabitation. You can only claim assets you jointly own or where you can prove beneficial interest.

Q: What is a TOLATA claim and when do I need one?

A: A TOLATA claim (under the Trusts of Land and Appointment of Trustees Act 1996) is a court application to establish your beneficial interest in property you don't legally own. You'd need one if your partner owns the property but you've made financial contributions, and they refuse to recognize your share. Courts require strong evidence like mortgage payments or improvement costs.

Q: Do I need to pay maintenance to my ex-partner after we separate?

A: No. Unmarried partners cannot claim maintenance from each other in England and Wales, unlike divorcing spouses. However, if you have children together, you must pay child maintenance calculated by the Child Maintenance Service. The parent caring for children can also make Schedule 1 claims for housing and other child-related costs.

Q: How can I protect my assets before living with an unmarried partner?

A: Create a cohabitation agreement outlining financial arrangements and asset ownership (£500–£1,500). If buying property together, draft a declaration of trust specifying each person's share (from £500+VAT). Make a will ensuring your partner inherits (unmarried partners aren't automatic beneficiaries). Consider keeping separate bank accounts and maintaining records of who paid for what.

Q: What happens to our joint bank account when we separate?

A: Jointly owned bank accounts are typically split 50/50 on separation unless you can prove unequal contributions. Either account holder can withdraw the full balance, so act quickly to protect your share. Notify the bank immediately about the separation and consider freezing the account or transferring your portion to a sole account.

Q: Can cohabitation law reforms in 2025 help me if I'm separating now?

A: Discussions about potential cohabitation rights reforms continue, but no formal government consultation has been launched and any new laws won't be retrospective. Current separations are governed by existing law with no automatic property or financial rights for unmarried partners. Don't delay legal action expecting future reforms to apply to your situation.

Conclusion

Key takeaways:

  • Unmarried partners have zero automatic rights to each other's property, savings, or possessions
  • "Common law marriage" is a dangerous myth—47% of people wrongly believe they're protected
  • TOLATA claims cost £10,000–£25,000 and require strong documentary evidence
  • Declarations of trust (£500+) prevent disputes before they happen
  • Without a will, your partner of decades inherits absolutely nothing under intestacy rules

Emma spent £22,000 improving a house she'd never own and lost it all when her relationship ended. Don't let that be you.

Whether you're happily cohabiting or facing separation, the time to protect yourself is now—not after the relationship breaks down.

The single most important legal protection for unmarried couples is a will. Without one, your partner inherits nothing—your estate goes to parents, siblings, or even distant relatives you've never met.

Create your will and protect your partner today. With WUHLD, it takes just 15 minutes online.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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