‘Such “non-romantic” house shares can be a very practical way for single people to live in an area which they might not be able to afford on their own – particularly in cities or tourist hot-spots where housing costs are higher,’ says Sarah Grantham, in the civil litigation team with QualitySolicitors Parkinson Wright. ‘The ability to split the bills, rent or mortgage payments – or merely to have some company – make it an attractive option.’
As with any cohabitation arrangement, disputes between cohabitees can and do arise about property, finances, or other aspects of their shared living situation. However, a dispute between people who are not romantically connected is treated differently under the law. If a dispute gets as far as having to go to court, the judge would make a decision based on property, contract and trust law (in particular the Trusts of Land and Appointment of Trustees Act 1996), rather than within the framework of divorce law.
There may also be a difference in terms of the balance of power, for example between a tenant and live-in owners, or a mesne tenant and subtenant.
Common areas of disagreement between people who live together include:
- Rent, mortgage, or bill payments – for example, a share of payments being raised without consultation or justification, or unpaid rent by one person financially affecting other housemates.
- Ownership of shared belongings – such as if furniture is bought together and one wants to sell it or take it with them when they move out.
- Tenancy agreement terms – if there is such an agreement, arguments can arise over the breach of terms relating to rent payment schedules, notice periods, house rules, guests, or shared expenses.
- Responsibility for repairs – if one housemate floods the bathroom, for example, should their fellow cohabitees have to pay for it?
- General incompatibility or a falling out, which leaves a housemate threatening to leave, in breach of the tenancy agreement or contract.
A more complex dispute can arise where one person believes they have gained a beneficial ownership in a property. Unlike a married couple, cohabitants have no automatic legal rights to each other's property even if they live together for a long time. However, if you have contributed towards the mortgage (as opposed to merely paying rent), you may be able to establish a beneficial interest in the property and acquire possible rights to occupy the property and take a share of any rental income or sale proceeds.
Our litigators can assess your situation and advise you if you think you have a beneficial right to a property.
Options if a cohabitation dispute arises
If you have a cohabitation agreement in place which outlines the rights and responsibilities of each person regarding the property and finances while you live together, this will dictate what happens if there is a dispute or one moves out.
In the absence of such a legally binding document, other means of resolution must be sought if a cohabitation dispute arises.
Informal discussions
If a disagreement crops up, dashing to court for a solution should be the very last resort, given how expensive and time-consuming such a course of action can be. Instead, opening the lines of communication between housemates is a good first step, in which each person calmly and rationally talks through their issues and together work to come to a solution that satisfies all the parties.
Mediation
Unfortunately, some cohabitation arguments can get heated and opposing views may be too polarised to allow an informal discussion to deliver a satisfactory result. If that is the case, having a mediator sit down to help housemates work through these issues is a sensible next step.
Mediation is much cheaper and less time-consuming than court action and a skilled mediator – who is neutral and does not take sides – can help each person get matters into perspective and pin-point how a solution can best be achieved.
Collaborative law
Collaborative law also involves all the interested parties sitting down to discuss the issues, but each housemate would be accompanied by their own collaborative lawyer who will offer legal advice and suggest possible resolutions as the discussion progresses.
Negotiation
If sitting down and talking through the issues with housemates – with or without the presence of a third party – is an unfeasible or unattractive course of action, engaging a specialist litigator to negotiate with the other housemates could be the next step.
An experienced litigator will discuss the issues with the other party or their legal representative and bargain with them in a bid to reach a mutually agreeable outcome.
Arbitration
If the cohabitation dispute is more serious, arbitration may be a good option. This involves an arbitrator analysing all the evidence and hearing the legal arguments from all the parties before coming to a final decision which is binding on everyone involved.
Arbitration is usually faster and less costly than litigation, it does not require the parties to be in the same room as the case progresses and, unlike court proceedings which are generally a matter of public record, it is conducted in private, with the final decision remaining confidential.
A more flexible and informal process than court, arbitration allows the parties to select the arbitrator and the rules of the arbitration, which can be tailored to their particular needs.
Litigation
If any of the forms of alternative dispute resolution methods end up in failure, and the value of the dispute merits this, then there may be no other option but to take the matter to court and seek a court order from a judge which is binding on all parties.
The order sought will depend on what the dispute is about, but whatever it is the court will make a decision on a cohabitation dispute based on property, contract and trust law (in particular the Trusts of Land and Appointment of Trustees Act 1996), rather than on what is fair as is the case in divorce proceedings.
The court will consider the common intention of the parties with regard to the property or assets at the time they were bought, as well as the financial contributions made by each party, such as mortgage payments, deposits, or bills.
How we can help
A dispute over a shared property can be complex and can sometimes spiral out of control. It is therefore highly advisable to consult a specialist litigatorr to help you resolve the matter.
We can negotiate on your behalf, prepare you for mediation, or accompany you to a collaborative law session or an arbitration hearing.
If alternative dispute resolution methods do not work and your case has to go to court, we can help you gather the necessary evidence to build and present the most robust case possible, deal with all the necessary paperwork, and be at your side to offer legal advice and representation throughout the court proceedings.
For further information, please contact Sarah Grantham or a member of the dispute resolution team on 01905 721600 or email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.