The guide top ten: Getting to grips with the financial connotations of living together

EACH week The Scotsman gives you a top ten guide to pertinent financial issues. The financial connotations of cohabitation will not be top of the agenda for those deciding on St Valentine's Day to move in together, but they will need addressing over the longer term. Lianne Lodge, solicitor at Pagan Osborne, shares her top ten financial tips for couples moving in together.

1 TITLE DEEDS If you are buying a property together, it is important to consider how the title of the property will be held.

If you decide that it is to be in both of your names, then it is possible to specify that, should one of you die, the full title should be transferred to the other partner.

2 MONEY If one partner is putting more money into the property through a larger chunk of the deposit, this should be recorded by a Minute of Agreement, which records what decisions are made and makes these legally binding should there be any dispute in the future.

A couple can own a property jointly but not equally, so if one earns more money than the other, then a split of, say, 60/40 can be detailed in the title deeds.

3 RENTING Money issues may also come into play even if you decide to rent a property. It is important to agree from the outset who is paying what percentage of the rent, and you should have this recorded in a legally-binding document.

4 COHABITATION AGREEMENT A cohabitation agreement is a sort of pre-nuptial agreement for those who decide to live together but are not getting married. It will set out who is responsible for what when you are living together. More importantly, however, it details what will happen should you split up.

5 WILLS Co-habiting couples do not have the same inheritance rights as married couples and would not automatically benefit from the other's estate if one were to die. If you want your partner to be entitled to a share of your estate then you must have that detailed in a will.

If there is no will then your partner would have to make an application to a court which would then decide on how much they should inherit.

This can be a very costly and timely process and there are no guarantees.

6 NOMINATION FORMS Unless you are married your live-in partner has little legal rights over your inheritance should you die. If you wish for your co-habitee to receive your life insurance or death in service benefit then you must complete the necessary forms which can be obtained from your provider.

7 CAPITAL GAINS TAX If you both already own properties and move in to one and let the other out, it is important to understand capital gains tax (CGT).

The rented property can remain your principal private residence for CGT purposes for the three years after you move out of it. This means if you sell the property within the three years, you still get principal private residence relief and there is no CGT payable on any gain. If you are unmarried then you are not connected to your partner for tax purposes, which allows you to do some planning for CGT.

8 POWERS OF ATTORNEY Couples could consider granting their partner a Power of Attorney. This will allow them to act if you are unable to, such as if you are out of the country or become ill. This would give them the power to pay bills, for instance, which could be important for a couple living together.

9 INSURANCE It is important to update your insurers. Your home insurance will need updating if your partner is bringing valuable items into your home and you may also want to add your partner onto your car insurance, for example.

10 BASIC ADMINISTRATION It can be very easy to get caught up in the moment of moving in together. But administrative matters need taking care of, such as redirecting mail, letting suppliers such as telephone and heating companies know and updating your personal records with places such as surgeries and insurance companies.