Did you know that the way you legally own your home could make a significant difference to what happens to your estate if you or your partner experience financial difficulties, require long-term care or pass away?
Many couples buy a property together without giving much thought to how it is legally owned. They assume that because both names are on the deeds, they automatically own 50% each and that their individual interests are protected.
However, there are two different ways couples can own a property in England and Wales: Joint Tenants and Tenants in Common.
Understanding the difference could be one of the most important steps you take when planning for your family’s financial future.
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Request Your Free Estate Planning ReviewWhat Is the Difference Between Joint Tenants and Tenants in Common?
When a couple own a property as Joint Tenants, they jointly own the entire beneficial interest in the property. They do not have individually defined shares that they can leave to someone in their will.
If one partner dies, their interest automatically passes to the surviving partner, regardless of what their will says.
Tenants in Common works differently.
Instead of owning the property jointly without defined shares, each person owns a specified beneficial share. This is commonly 50% each, although other proportions are possible.
Each person can decide who should inherit their share when they die, usually through their will.
This distinction can be particularly important when considering estate planning, inheritance and potential financial risks.
Let's Look at an Example: Meet John and Jane
John and Jane have been married for 25 years. They purchased their family home together and have worked hard to pay off their mortgage.
John is a self-employed builder, while Jane works as a teacher.
Unfortunately, John’s building business begins to struggle. A major contract is cancelled, leaving him with
