Declaration Of Trust
Declaration Of Trust SOLICITORS IN READING & HENLEY
A Declaration of Trust, also known as a ‘Co-habitation’ or ‘Living Together’ Agreement is a document drawn by co-habiting couples that records what they have agreed regarding their financial arrangements, both during their relationship and if they ever separate. This document can be used to confirm both parties intention regarding financial matters and can help alleviate any future disputes or misunderstanding.
Arrangements covered in a Declaration of Trust could include:
- How much each party contributes financially to household bills, mortgage payments, rent, utilities etc
- Who owns what regarding expensive assets such as electronics, furniture or cars
- How joint debts or bank accounts are managed
- What percentage of a property each person owns should they decide to sell/ buy each other out
Co-habiting couples should also make sure that they have Wills, as if one party dies the surviving co-habitee will not be able to rely on the rules of intestacy to protect them.
If a cohabitating couple separate and property is owned between them, or one party is the sole owner of a property and the other party wants to claim an interest in it, a dispute may arise as to what the respective parties are entitled to. If a dispute escalates and goes to Court, a Declaration of Trust will outline to the Court what the common interest was of the parties at the time the property was acquired, and how that has evolved (if at all) over time.