Co Habitation Q & A
This article appeared in West End Mail in August 2007.
Question:
Answer:
Unless you give specific instructions to your solicitor that title to the property is not to be held jointly between you but is to be held in shares reflecting your respective contributions then title will be taken equally with each of you effectively owning a 50% share.
That being the case, should you come to sell the property at some point in the future, you will each be entitled to 50% of the sale proceeds.
Should your relationship encounter difficulties in the future and you decide to go your separate ways, you should be aware that your partner would be able to raise an action of division and sale calling for the property to be sold and the sale proceeds split equally. If your intention would be, in the event of your relationship floundering that the property be sold and you “refunded” your contribution then this should be documented either with the title to the property being held in shares other than 50% each, or alternatively with a Minute of Agreement or Co-habitation Agreement being drawn up in the first instance stating that although the title is held in joint names you are contributing more to the purchase price than your partner and upon re-sale will be entitled to this sum back. You should also, if considering such an agreement, discuss with your partner if interest would be payable on this sum or, alternatively, if you should be awarded a higher percentage of the sale proceeds reflecting your initial contribution. There is no right or wrong way for calculating how sale proceeds are to be divided but if you do not document your intentions now and you do split at some point in the future, you may well live to regret it.
Article compiled by Karen Lang
Posted by Sharon Clift on Aug 03, 2007
