What is a Declaration of Trust?
A Declaration of Trust is a document that can be prepared when two or more people buy a property together. It is recommended as it sets out whether the property is owned equally between each party, or if one owns more than the other and defines those shares of ownership accordingly.
What is a Cohabitation Agreement?
A Cohabitation Agreement outlines how a property that is owned by a cohabiting couple can be dealt with if the couple split up, such as whether the property is to be sold, or if one person gets first refusal to stay in the property. The document can also set out how much money each person has in a joint bank account, and what the funds are meant to be used for, which can stop one person withdrawing a large sum from the joint account unexpectedly by placing an agreed restriction on how much one person can take out.
How can I protect my own assets when cohabiting?
A Cohabitation Agreement works to protect the individual assets owned by each party, as well as any other agreements between you related to finance. It will outline the agreement between both parties that can cover property ownership, other assets such as cars, furniture, personal items as well as joint bank account management, pensions, household bills and insurance policies. It can be as comprehensive as it needs to be to protect your assets.