When purchasing a property with a partner, many couples contribute unequal amounts to the deposit. This can happen for various reasons—one partner may have saved more, received a gift from family, or sold a previous property. Whatever the reason, if the relationship ends, tensions can arise over how the deposit and any equity are divided. A Minute of Agreement is a practical and legally binding way to protect both parties and ensure that contributions are reflected fairly.

What is a Minute of Agreement?

A Minute of Agreement is a formal legal contract, often referred to as a postnuptial or cohabitation agreement. It can set out how assets, such as property, will be divided if your relationship ends. In the context of housing, it allows couples to agree in advance how the sale proceeds of a shared home will be divided, considering any unequal contributions to the deposit.

Why Should You Consider a Minute of Agreement?

Without a Minute of Agreement, there may be significant uncertainty about how a shared property would be divided if a couple separates. Scottish law treats property differently depending on whether a couple is married, in a civil partnership, or cohabiting, and disputes can quickly become expensive and emotionally draining.

For example, if you contributed 70% of the deposit and your partner contributed 30%, a Minute of Agreement can ensure that these proportions are respected, even if the property has increased in value. Without this clarity, one party could argue for an equal split, regardless of the initial contribution.

Key Benefits of a Minute of Agreement

– Clarity and Security: A Minute of Agreement ensures both parties know where they stand and reduces the potential for disputes in the future.

– Customisation: The agreement can be tailored to reflect specific arrangements, including deposit contributions, mortgage repayments, or financial support from family.

– Cost-Effectiveness: While the upfront legal cost of drafting a Minute of Agreement may seem unnecessary, it pales in comparison to the costs of protracted litigation during a breakup.

– Peace of Mind: Both parties can enter the relationship or property purchase with confidence, knowing their financial contributions are acknowledged and protected.

When Should You Create a Minute of Agreement?

The best time to create a Minute of Agreement is before purchasing a property together. However, it’s never too late to formalise an agreement, even after the purchase has been completed. This type of document is particularly useful for couples who are not married or in a civil partnership, as the legal protections for cohabiting couples in Scotland are more limited.

How Can Johnson Legal Family Law Help Me?

If you are considering entering into a Minute of Agreement with your partner, don’t hesitate to reach out to us for support. Our team of experienced family lawyers based in Edinburgh can provide the guidance and support you need.

We offer all our clients a free, 15-minute consultation call with one of our solicitors to determine how we can help. Call our office on 0131 622 8477 email [email protected] or submit your enquiry here.

Take the first step towards securing your financial future with a professionally drafted Minute of Agreement.