The challenges of rising cost of living, wage growth, and getting on the property ladder has seen a significant increase in financial support offered by parents and grandparents to children.

1 in 3 first time buyers are cohabitees, and according to the Office for National Statistics figures there has been a 20% increase in the number of people not in marriages or civil partnership cohabiting since 2012; 5.4m people to 6.8m. It continues to be the fastest rising living arrangement.

Against this backdrop what happens when a cohabiting relationship breaks down, and parent/grandparents are concerned their financial support may end up in the hand of parties they don't want it to.

Kate Booth, Head of the Family Team at Brindley, Twist, Tafft & James Solicitors joins the Today's Family Lawyer podcast to discuss the issue, highlighting some of her recent work on the subject. She points to these often informal arrangements, whereby no discussion around repayment, or interest is considered, becoming a more formal concern in the event of a relationship breakdown, and/or sale of a property.

One of the main points of contention is whether the money is classed on separation as a gift or a loan. Kate also discusses the complications around hard and soft liabilities which can come into the matter as well.

In 2022, P v Q provides some pointers on how the courts might deal with debts and is a useful precedent when taking on such matters.

Kate explains in detail some of the considerations practitioners should account for when dealing with such maters in an informative and interesting discussion.

The Today's Family Lawyer podcast is available on your preferred podcast provider and at www.todaysfamilylawyer.co.uk.

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