Is your share of the family home protected?

It is now commonplace for couples to live together without getting married. While cohabitation is often viewed as a modern, informal approach to partnership, it can lead to serious legal and financial complications when relationships break down.

One of the biggest sources of dispute? The family home.

Unlike married couples, cohabiting partners have no automatic legal rights to each other’s property, even after decades of living together. This is where the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) comes into play.

What is TOLATA?

TOLATA is a piece of legislation that allows people with a legal or beneficial interest in a property to ask the court to determine what share they own, whether the property should be sold, and how proceeds should be divided.  The court can now go further, thanks to case law, and make an order that one party shall have the opportunity to purchase the other party’s share, in the first instance.

It’s most commonly used when:

• A couple separates and only one partner is the legal owner of the home;
• There’s a dispute over how much each person contributed to the property;
• Someone is being forced out of a property they’ve financially invested in; or
• There’s disagreement following the death of a joint owner.

Why does it matter? 

We have seen rising house prices, longer cohabitations, and a growing trend of “bank of mum and dad” contributions. In these scenarios, disputes about ownership and entitlement are becoming increasingly common.

For example:

• A client in Weymouth contributed to significant property renovations over 10 years, but wasn’t named on the title deeds.  On separation the other party claimed to be the sole legal and beneficial owner.
• A client in Yeovil was forced to move out of a property due to the other party’s behaviour, after separation the other party refused to recognise the clients beneficial share in the property.
• A couple in Sherborne purchased a home together but did not protect their unequal contributions by entering into a Declaration of Trust.  On separation the party who contributed less, claimed the net proceeds of sale should be divided equally.

These cases are not uncommon and without the right legal support, people can lose what’s rightfully theirs.

How TOLATA Can Help

If you’ve contributed financially towards a property, you may have a beneficial interest in it, even if your name isn’t on the deeds.

Under TOLATA, courts can:

• Recognise informal or verbal agreements;
• Assess intentions based on contributions;
• Order the sale of the property;
• Decide on fair distribution of proceeds; or
• Order that one party has the opportunity to purchase the property from the other.

What Should You Do?

If you’re living with a partner or relative and there’s any uncertainty around ownership:

1. Get legal advice early, i.e. before buying, separating, or making big investments;
2. Consider a Declaration of Trust, this is a formal document setting out ownership shares;
3. Keep a record of all contributions you make towards the property; and
4. Don’t assume “common law marriage” gives you rights, it doesn’t even exist in English law.

Support

At Porter Dodson, we work with people across Dorset, Devon, Somerset and further afield to protect their interests in family homes and jointly owned property. If you're facing uncertainty about your home and your rights, we’re here to help.

Don’t leave it to chance. TOLATA could be the key to protecting your share of what you've built.