Unmarried couples who live together must split assets if they break up, court rules

Carl Barron lived with Lynne Fowler for 17 years in the home where they raised their two children. But despite the fact that he paid for the mortgage, the Court of Appeal decided she is entitled to half of the £150,000 property.

The ruling could set a legal precedent that unmarried couples who live together and buy a home must split the proceeds equally.

However, other cases have directly contradicted this judgement. Government proposals on cohabiting couples, which are designed to address the issue of home ownership, were recently put on hold.

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Retired firefighter Mr Barron and Miss Fowler, 43, moved into their house in Bognor Regis, Sussex in 1983, which they registered in both their names.

They were together for a total of 23 years during which time they had two children Nicholas , now 20, and Sarah, now 13.

In court it was agreed that Mr Barron had paid the deposit, the mortgage and the bills on the property out of his pension.

Miss Fowler, for her part, worked most of the time and spent her income on family holidays, food and looking after the children.

When the couple split in 2005 Mr Barron was declared the 'beneficial' owner in a county court ruling.

Yesterday, however, Lady Justice Arden, and two other Appeal Court judges, overturned that decision.

The judge said the joint name registry was a deliberate choice and it must be legally presumed that ownership was equal.

Justice Arden said: "I do not think that it is reasonable to infer that the parties intended that Miss Fowler should have no share of the house if the relationship broke down.

"That might leave Miss Fowler dependent on state benefits and housing for support."

A previous ruling at The House of Lords, however, came to the exact opposite conclusion.

In April last year five Law Lords ruled that a father of four was not entitled to half of the family home he had shared with his girlfriend of 20 years because she had contributed more money to buy it.

Plans for reform of the law for cohabiting couples was finalised last year by the Law Commission.

They suggested that the better-off partner of a live-in couple that splits up would pay compensation to the other if they have children.

A live-in partner would also be liable for compensation once the couple had lived together for more than two years.

The reforms are currently on hold while ministers investigate how much it will cost in legal aid.

One in six couples living together are unmarried, 67 per cent more than ten years ago. This is expected to rise to one in four by 2031.