Family members or friends who have financially supported the couple, by contributing to a house deposit, offering a loan, or co-investing in property, can find their interests at risk if the relationship ends and no formal protections are in place.
At Jackson Lees, we often assist individuals in similar situations. Whether you're planning to offer financial support to a couple or are involved in a separation dispute, Sarah McCarthy, Partner & Head of Private Family Law at Jackson Lees, provides her top 3 tips to protect your interests.
1. Protect Your Interest from the Start
If you’re thinking about lending money or contributing to a property purchase, it’s crucial to protect your interest from the outset.
- Put it in writing: Agree in advance whether your contribution is a loan or a gift, and what should happen if the couple separates. A written agreement can help avoid disputes later.
- Get legal advice: Our Wills, Trusts & Probate team can help you structure your contribution in a way that protects your rights and considers any inheritance tax implications. They can also advise on how to reflect this in your Will. Janina Barker or Callum Leighton from our Wills, Trusts & Probate team will be happy to assist.
- Speak to a conveyancer: If your contribution relates to a property, a conveyancer can advise whether your name should be added to the title or if a Declaration of Trust is appropriate. Janet Jones from our Residential Property team will be happy to assist.
2. Keep a Record of All Transactions
Even if you trust the couple completely, it’s wise to keep a paper trail.
Save receipts, bank statements, and any written communications about your contribution. These records can serve as vital evidence if your interest is ever challenged.
3. If the Couple Separates, Act Quickly
If the couple has already separated and you haven’t protected your interest, or if your contribution is being disputed, you may still have options.
Our Family Law team can advise you on becoming an intervenor in financial remedy proceedings. This means applying to the court to be formally involved in the case so your financial interest can be considered.
- We’ll assess your chances of success
- Help you prepare the necessary evidence
- Guide you through the court process
Timing is key. The sooner you seek advice, the better your chances of recovering your contribution.
Need Help? We’re Here for You
Whether you’re planning to help a loved one financially or are already facing a dispute, our expert teams from across the Jackson Lees Group are here to support you.
For a consultation with a member of our legal team, give us a call, make an enquiry or request a call back.