Property Rights For Unmarried Cohabitants

The Supreme Court of England & Wales recently affirmed in Jones v Kernott [2011] UKSC 53 the principles upon which the Courts in England & Wales may determine the beneficial interests of unmarried couples in their family home.

THE FACTS

Ms Jones and Mr Kernott were an unmarried couple. They purchased 39 Badger Hall Avenue in 1985, in joint names, with the benefit of an endowment mortgage, also in joint names. Ms Jones paid the deposit. Although the property was in joint names, it was not expressed what percentage share each should have. Mr Kernott paid the household expenses. Ms Jones paid the mortgage. They had two children.

The couple separated in 1993. Mr Kernott moved out and thereafter made no financial contribution to the household and very little towards the maintenance of the children. The property was put on the market in 1995, but did not sell. Mr Kernott bought a new property in 1996 using half the proceeds of a joint life insurance policy.