How are debts owed to family members dealt with in divorce proceedings?
The first question for the court to determine is whether the debts are legitimate, and this is a...
Have you ever made a promise to your partner which you failed to keep? Let’s be honest the answer is probably yes but there are times when a broken promise can have consequences beyond the annoyance and frustration of your other half.
Consider this scenario; A couple, Chis and Lucy, who are very much in love, have been dating for a couple of years are fed up of travelling between their two houses and decide to set up home together. They spend months house hunting and finally find a property they both love. Chris is considerably better off than Lucy, so is able to provide a big deposit and take out a mortgage. Lucy is not in a position to contribute towards the deposit and can’t get a mortgage so agrees to buy some furniture.
Chris buys the house however Lucy gets nervous about giving up her own house and a secure tenancy, for a property she will not own that she will be moving to. Chris is very understanding of this and tells her not to worry and promises she will always have a home with him.
They move in together and live happily for the next 10 years. As he has a better job, Chris pays for most things and supports Lucy financially while she goes back to university. In turn, Lucy does most of the cooking and cleaning so that Chris can focus on his work. They talk about marriage but it is clear to everyone, except Lucy, that Chris has no intention of getting married.
Over time, their relationship deteriorates, things start to go wrong and one day while Lucy is out, Chris changes the locks and refuses to allow her back into the house. Lucy is left homeless.
What happens next? Does Chris have an obligation to support Lucy? Does Lucy have a share in the house?
The answer to both of those questions is; No. They are not married so there is no obligation on Chris to support Lucy. There is no evidence of an agreement that Lucy would have a share in the house. The only thing Lucy can rely on is Chris’s promise that she would always have a home with him.
In the court case that followed the judge found that it would be unconscionable to allow Chris to break his promise when Lucy had relied upon it in giving up her own house. Chris was ordered to pay Lucy just under £30,000 to effectively put her back into the position she was in before she moved in with him.
Is this a fair result? Chris did not think so. After all he had bought the house, he worked hard to pay for everything and supported Lucy for 10 years. However, Lucy did not think so either; she supported Chris in the same way a wife would have done for 10 years, only to find herself homeless and having to fight Chris in court. She received a mere £30,000 for her efforts, which was probably spent on legal fees, whereas Chris kept the property which was worth over £300,000.
This story highlights the difficulties faced by couples who live together but do not marry. It is a difficult conversation to have, but it is essential to be clear about what you intend to happen if the relationship ends. Even for the happiest couple, this intention will probably differ, but it is far easier to have the discussion whilst you are able to speak to each other rather than at the end of the relationship with the inevitable frustration, blame and anger that follows.
If you are thinking of moving in with someone or if you have been living with someone for 10 years but have no formal agreement in place, we can assist by drawing up a contract which provides you both with peace of mind, certainty and security should the worst happen. In the same way as you have home insurance, you hope you will never need to rely upon it but it is always far better to have it just in case.