Co-habiting - covering your back

You may think that bad habits such as snoring or never putting the cap back on the toothpaste would be the worst things you would experience when you move in with your other half. Not so. Make sure you know how much - or little - protection you have before you take the plunge.

In England and Wales more than two million couples currently live together without being married. But what are their rights? There is widespread misunderstanding of the law according to research from Advicenow.org.uk which found that two in three women believe they have the right to financial support from their partner if they have lived together more than five years and 61% of people they questioned believed that couples who have lived together for a while have the same rights as married couples. This is simply not true, and not understanding the law can cause real problems for people when things go wrong.

Making the move

If you move into a home that is owned by your partner, you do not gain any legal rights over the home. If you are asked to leave, or if your partner decides to sell the property, you have no right to stay, and no rights to a percentage of the price. You can gain rights in the property if you make a written agreement to share it or if you make a financial contribution that helps to pay for the flat on the understanding that you are going to get a share. Pillow talk is not enough here - get the commitment in writing. The clearer you are about this, the easier it is to prove.

Couples buying together can be joint tenants or tenants in common. In the former situation both get an equal share, in the latter it is stated how much each is entitled to. More importantly, perhaps, beneficial joint tenants automatically get their partner's share of the property when they die but tenants in common can leave their half to whoever they wish. Once both your names are on the Land Registry or title deeds, no one else can force you to leave or sell the property without getting your agreement or a court order and loans cannot be taken out against the property without your agreement.

What's yours is mine

It's not just property which could become a problem if you go your separate ways. If you have taken out a credit agreement, loan or have a bank account in joint names then you are both liable for the full amount of any debt. This is known as 'joint and several liability' and also applies to rent arrears on joint tenancies, arrears on joint mortgages, council tax payments and water charges on properties that have been jointly occupied. The key thing is whether or not you signed a joint credit agreement.

If you marry or live with someone with current or past debt problems, their record could affect yours whether you apply for joint or individual credit. Credit referencing will take note of everyone who is living on your property and any negative associations could affect your score, even if you have an exemplary history. Get copies of your records from the UK's three credit reference agencies and request a 'disassociation' from your partner if you believe their poor credit rating is affecting yours.

If you leave me now

It isn't the most romantic of conversations, but it is important that you discuss what your rights to the home will be, should you split up. The best advice is to agree at the outset what would happen if you break up, write the agreement down, and keep it safe. If you have this drawn up as a Declaration of Trust this will set out your shares in law.

You can also draw up a Living Together Agreement to deal with all the issues between you. The 25-page government-backed document is similar to pre-nuptial agreements and is already popular in the States. It addresses questions about individual earnings, who will pay for the children, who owns what and how household bills will be paid. While not legally binding, it could be brought up in any court proceedings. There is also the option to give it greater formality by asking a solicitor to write it up as a deed, making it legally binding in the same way as any legal contract between two parties. But this is not just about splitting up, it is a common sense way of organising the day-to-day arrangements of living together and protect both parties from whatever might happen in the future, including the possibility of the death of a partner.

You may think that making a will is just for old people but it is essential that you both take out a will when you buy your new home. Not only will this mean that you can leave your share of the property to your partner or spouse and any children plus avoid a nightmarish tangle of paperwork, it can help protect you money and your home from inheritance tax. In the Advicenow survey, 56% wrongly assumed that if they had been living together in a house owned by their partner for more than five years and their partner died, they would have the right to remain in the property.