The recent high-profile split of celebrity influencers Molly-Mae Hague and Tommy Fury shines a light on how assets are divided when a couple aren’t married. Recently engaged and with one child, the former couple is said to have over £9 million worth of assets, including houses, cars, and business ventures.
In this article, family lawyers Corinne Parke and Bethan Hill-Howells explain how the assets of an unmarried couple are divided following separation.
Engaged couples generally have the same rights as a cohabiting couple and therefore, cannot make a financial remedy claim under the Matrimonial Causes Act 1973. The ability of unmarried couples to make financial claims against each other is very limited and tends to be restricted to those with children or jointly owned property.
Joint property
If the couple owns property together, any disputes in relation to this would be brought as a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). However, if the title deeds of the property are only in one of the couple’s names, the issue becomes more tricky and will depend on if either party has made any monetary contribution towards the purchase price or if any promises were made, at the point of cohabitation, upon which the other person relied. Any applications under TOLATA tends to be extremely costly and time-consuming and is strictly governed by the Civil Procedure Rules.
Joint business(es)
Without a cohabitation agreement or legal agreement in place outlining how any business ventures should be divided, it could result in a lengthy and expensive litigation process.
Where the cohabiting partner is kept separate from the business or any other acquired assets, they will unlikely be able to make a claim on them. However, should they have shares in the business or be employed in some capacity, there may be grounds for a claim of a stake in the company.
By having a clear and agreed set of terms in place, any claims will be limited. Therefore, whilst no one wants to think of a relationship breaking down, it is crucial to ensure any involvement a cohabiting partner has in a business is set out with the relevant legal documents which are carefully drafted to cover all eventualities.
Responsibility for children
The law regarding child arrangements and child maintenance of an unmarried couple’s child or children is the same as if the couple was married. However, if the parents are married, they both automatically acquire parental responsibility; if they are not married, then only the mother automatically acquires it. Without the benefit of parental responsibility, the parent is limited to how much information or consultation they are entitled to in respect of their child.
The father can acquire parental responsibility by:
- being registered as the father on the child’s birth certificate
- the mother agrees to allow the father parental responsibility, or
- obtaining a parental responsibility order from the court. This is usually granted on request, aside from exceptional circumstances.
The best thing for unmarried couples to do is to have a cohabitation agreement in place that stipulates what happens to their assets. Without this, the division of substantial assets becomes trickier and may result in a lengthy dispute resolution process that many will want to avoid.
If you have questions or concerns about the division of assets or child custody following a relationship breakdown, please contact Corinne Parke and Bethan Hill-Howells.
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.