Buying a home together is an exciting milestone and is likely to be one of the biggest financial commitments you’ll ever make. Amid the excitement of finding the right home, arranging the mortgage and planning the move, one important question is often overlooked: What happens if things don’t go to plan?
It may not be the most romantic conversation to have, but agreeing what should happen if your relationship ends, or if one of you contributes more financially than the other, can save significant stress, expense and uncertainty in the future.
What Is a Declaration of Trust?
A Declaration of Trust is a legal document that records who owns the beneficial interest in a property and how the proceeds of sale should be divided. Rather than leaving these questions to be decided years later, the agreement is recorded clearly from the outset.
It can set out:
- how much each person is contributing towards the deposit;
- what percentage of the property each person owns;
- how mortgage payments are taken into account;
- whether future contributions affect ownership; and
- what happens if the property is sold or one person wants to buy the other out.
We’re not married – do we own everything equally?
No. Many people believe that living together gives them the same legal rights as married couples. In England and Wales, that simply isn’t the case. There is no such thing as a “common law marriage”, regardless of how long you’ve lived together.
If you separate, disputes over your home are generally decided under property and trust law, not family law. Without a Declaration of Trust, the court may have to determine what each of you intended when the property was purchased. That can involve examining years of financial records, emails, text messages and witness evidence.
What if one of us pays more?
It’s very common for one partner to contribute more than the other – a larger deposit, perhaps more towards the mortgage; or the cost of renovations and improvements.
Unless this is properly documented, there may be disagreement later about whether those extra contributions should result in a larger share of the property.
A Declaration of Trust allows you to decide this yourselves rather than leaving the decision to a judge.
What happens if we separate?
If there is no agreement and you cannot agree what should happen to the property, one or both of you may have to make an application to the court under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).
These disputes can be stressful, time-consuming and expensive.
The court may need to consider:
- who paid the deposit;
- mortgage contributions over many years;
- discussions before and after the purchase;
- household finances;
- improvements to the property; and
- the parties’ intentions throughout the relationship.
Every case depends on its own facts, making the outcome uncertain. Court decisions highlight the importance of written agreements. The High Court recently reinforced the importance of formal ownership arrangements in Uddin v Uddin [2026] EWHC 150 (Ch).
The case involved a dispute over whether an informal family agreement had changed the parties’ ownership of a property after they had already signed an express Declaration of Trust. The High Court confirmed that informal conversations alone are not enough to change beneficial ownership. A person seeking to rely on such an agreement must also prove that they acted to their detriment in reliance upon it. The decision demonstrates how much weight the courts place on properly documented ownership arrangements.
When should we put a Declaration of Trust in place?
Ideally, it should be prepared before you complete the purchase. It is particularly important where:
- one partner is contributing a larger deposit;
- parents are helping with the purchase;
- one person already owns another property;
- you intend to own unequal shares; or
- you simply want certainty about what would happen if circumstances change.
Isn’t it unromantic?
Many couples worry that discussing a Declaration of Trust suggests a lack of trust. In reality it is simply good financial planning. Just as people arrange life insurance or make wills without expecting the worst to happen, a Declaration of Trust provides clarity if unexpected circumstances arise. Most couples never need to rely on it but those who do are often grateful that difficult conversations were had before problems developed.
Every couple’s circumstances are different. A Declaration of Trust can be tailored to reflect your financial contributions, future plans and personal wishes. Obtaining legal advice before you exchange contracts is usually far easier, and considerably less expensive than resolving a dispute after relationships have broken down.
If you are buying a house with your partner and would like advice on protecting your interests, our specialist family law team can help you put the right arrangements in place from the very beginning.
