Wednesday, May 16, 2012

Living Together - Legal Advice on How to Protect Yourself Financially

"Living Together - Legal Advice on How to Protect Yourself Financially"," The financial protection provided by the law during the cohabitation and if the relationship breaks down is very different and for cohabitees almost non-existent.

What the law will do however is enforce arrangements and agreements that have been made by the parties.

In addition they should both make Wills.
 Always get things down in writing both to protect yourself in any eventuality and to avoid future arguments and disputes.
 Discuss and agree who will contribute to the purchase and how the sale proceeds will be divided up on sale.

No matter what division is agreed, make sure that the ownership shares agreed are recorded properly when you purchase the property.

Discuss whether the property is to be held as tenants in common or joint tenants.

You may well need to draft a trust deed to reflect the agreement reached as to what is to happen with the property if you separate.

As soon as you can, agree on the payment of living expenses.
 If you're going to have joint bank accounts and credit cards consider how they will operate.
 Nothing can start an argument like one person accusing the other of overspending on a joint bank account.

If you or your partner have children from another relationship agree where you stand in caring for and disciplining these children.
 If you are a father with children born before December 2003 you may need to enter into a parental responsibility agreement with the mother.
 You will then be able to carry on the care of the children in the event of your partner dying.
 Consider the need to make a power of attorney to give your partner control of your financial and business affairs.
 This will help your partner to take care of your wishes as otherwise relatives, possibly distant, would otherwise have to be consulted.