Up to 35 million single couples who run the risk of losing their portion of the house should be warned

The number of properties that unmarried couples jointly but unequally own has increased, putting millions more at risk of issues should they choose to separate

Here's how to keep your assets safe.

Lawyers are cautioning that up to 3.5 million couples who live together but have unequal shares in the property they jointly purchased could lose their assets if they divorce.

According to data that the law firm Nockolds obtained from the Land Registry under the Freedom of Information Act, the number of properties in the UK owned by tenants in common with unequal shares increased by 500,000 over the last six years, from 2.9 million to 3.4 million, a rise of 17%.

The majority of tenants in common are unmarried, cohabiting couples who may have unequal shares in a property they jointly own, though a tiny percentage will be siblings, extended family, friends, or co-investors.

When purchasing real estate, each party's interests are safeguarded by owning a property as tenants in common. However, according to Nockolds, a lot of cohabiting couples probably believe that being tenants in common offers legal protections that don't exist.

Even if one partner made a larger contribution to the deposit or mortgage than the other, the courts frequently assume equal shares and divide the asset's value in the event of a divorce.

This is true unless there is unmistakable proof that the partners intended for the property's value to be divided in a different manner, according to Nockolds. Examples of such proof include financial records, correspondence, or behavior demonstrating a mutual understanding of unequal ownership.

It is widely believed that living together as tenants in common provides strong legal protection that they will receive their just share in the event of separation, according to Kiren Dhillon, senior associate at Nockolds. This could be dangerously deceptive. Courts will consider conduct, contribution, and intention in addition to the legal title. A "

According to Dhillon, it is "irrelevant" what the Land Registry records indicate about a property's ownership when cohabitees have contributed unequally to it. To specify how much each of them contributed and what they should be entitled to in the event of a split, they will require a separate contract, such as a declaration of trust.

How to safeguard yourself when purchasing a property together.

According to Nockolds, in order to appropriately protect individual interests when purchasing property together, a declaration of trust is required.

This legally binding document details each party's financial contributions to the deposit, mortgage, and related expenses as well as the ownership shares of a property.

It should outline who is responsible for continuing costs, how the sale proceeds will be distributed, and include clauses for settling disagreements or purchasing a portion.

Importantly, it can also deal with occupancy rights and inheritance intentions, providing cohabiting owners with legal clarity and protection, particularly in situations where contributions are uneven or third-party funding is involved.

According to Dhillon, title deeds reveal the property's owner. A declaration of trust demonstrates ownership, and when relationships deteriorate, this distinction becomes crucial. A declaration is the only trustworthy method to guarantee that a contribution is legally recognized if one party makes a larger contribution to the purchase or maintenance. A "

According to Nockolds, the strongest method of safeguarding parties' interests is frequently a cohabitation agreement combined with a declaration of trust.

A cohabitation agreement is a more comprehensive contract that specifies how cohabiting partners will live together and what will happen if they decide to separate.

According to Dhillon: "A cohabitation agreement specifies how that ownership is managed on a daily basis and what happens if the relationship ends, whereas a declaration of trust secures each party's financial stake in the property."

When combined, they provide the most unambiguous and enforceable protection for beneficial ownership by fusing practical clarity with legal certainty. A "

What is the outcome of a marriage between tenants in common?

Some cohabiting couples may decide to tie the knot, which offers a number of benefits related to marriage taxes. However, when cohabiting couples who have been living together as tenants in common get married, it becomes even more complicated.

Regardless of Land Registry records or what is stated in a declaration of trust, the Matrimonial Causes Act of 1973 grants the family courts extensive authority to redistribute assets, including the family home, based on fairness, needs, and circumstances.

Dhillon stated: "It's a common misconception that declarations of trust endure after marriage. They may have no value in a divorce court because they are superseded by matrimonial law.

"A new legal framework is introduced by marriage. In the event of a divorce, what was previously a private agreement between cohabitees becomes subject to judicial discretion. As a result, it makes sense to include a declaration of trust in a pre-nuptial or post-nuptial agreement if you are getting married. A "