Julia asks:

My boyfriend moved in to my house in August 08.  The house is in my sole name with 100% equity as the mortgage was paid off in 2000. However my estranged husband has a 50% charge on the house, due to be discharged when my youngest son finishes full time education to A level standard (next year).

All the household bills are in my sole name. My boyfriend pays a monthly agreed sum directly into my bank account to cover his contribution towards household expenses and food.

Would my boyfriend legally have any claim on my house at some time in the future and would you advise that I enter into some kind of living together agreement?

I am aware that previously he ran up huge debts on his own credit cards and has not involved me in any financial discussion as to his status.  We have no joint accounts.

Upon divorce from his wife he offered her the equity in his own marital home in exchange for no maintenance payments for his children (who are now over the age of 18).

My situation is that I am not yet legally divorced, but have a legally binding separation agreement with my estranged husband dating back to 2003.

Many people believe that if they live with another person for a certain number of years they can make financial claims against that person on separation.  You have probably heard people talk about this as ‘common law marriage’.  This is a complete myth.  The reality is that the law largely fails to recognise personal relationships outside of marriage and civil partnership.  Claims can however, be made on behalf of children or in circumstances where a trust (sometimes implied) arises.

An implied trust may arise in circumstances where one person in a couple owns a property and the other either makes a financial contribution to its purchase (which may include paying the mortgage) or significant improvement or where there is an agreement (however informal) to share in ownership. 

The sort of circumstance you have outlined would not create an implied trust and so it would be very difficult for your current partner to make a claim in respect of the house if things do go wrong between you.  However, in some cases the courts have found agreements to share based on discussions between the couple and to avoid any doubt therefore it is sensible to record in writing the fact that your partner will not share in ownership (technically beneficial ownership).  This can be done quite informally although it must be signed by your partner.  If you are worried about this then a more formal agreement in respect of which you both get legal advice will make it tighter.

With regard to his debts, you need to make sure that nothing is in joint names because you will be liable for any joint debt ‘jointly and severally’ with him.  This means that the lender could come after either of you for the whole debt no matter who has benefitted from it.

You also mention that you have a binding separation agreement with your husband dating back to 2003.  As you have lived apart for more than five years, either of you could start divorce proceedings based on the fact of your separation.  Within the divorce process you should ask the court to make a consent court order in the terms of your separation agreement.  Only once a court order is made that dismisses claims that you and your husband have against each other will you both be prevented from making financial claims.  Whilst a separation agreement is very useful and is likely to prevent a successful claim, it cannot prevent a claim being made. I hope this is helpful.

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