Shropshire couples urged to legalise finances
Following a Supreme Court decision which recently concluded a man should receive only ten per cent of the value of a house he owned jointly with his ex-partner, a leading county Family Law specialist said the case highlights two important issues.
Firstly, the importance of making financial arrangements through correct legal channels in cases where couples live together but are not married or in a civil partnership, and secondly the need for more clarity in the law.
Instead of receiving half the value of the property as granted to him by the Court of Appeal last year, Leonard Kernott appealed and lost £90,000. But Alison Monaghan, a Solicitor with GHP Legal who have one of the largest family departments in the area covering Shropshire, North Wales and the North West, said the situation may have been very different if Mr Kernott and his former partner had formalised their financial situation at the time of purchasing the property and again when he left, rather than relying on loose verbal agreements between themselves that may not have suited one or other party later on.
“Mr Kernott and his ex-partner, Patricia Jones, purchased a property jointly and had a joint mortgage,” said Ms Monaghan. “According to Mr Kernott, he paid all the bills and took responsibility for substantial refurbishment of the property. But when he moved out of the family home after eight years he did not make any formal arrangements about the house in case the relationship problems could be resolved.
“Ms Jones paid the mortgage after Mr Kennett moved out and he allowed that situation to remain for thirteen years so as not to disrupt the couple’s children. When Mr Kernott finally decided he wanted his money, a split of 90% and 10% was imposed by the county court, in favour of Ms Jones. Mr Kernott appealed and last year the Court of Appeal decided that he was still entitled to half the value of the house because the couple owned equal shares when they separated and neither had done anything to change the situation since. The case then went to the Supreme Court, which overruled the Court of Appeal’s decision and left Mr Kernott with only 10% again.
“Unfortunately, many of the two million plus co-habiting couples in England and Wales are unaware that the law still does not recognise that they have rights and obligations to one another despite not being married. If they separate, either can claim against the other for economic disadvantages suffered by them, or for economic advantages gained by the other. Having financial arrangements legally set up at the outset can minimise financial loss in the event of a break-up.”
