Unequal Deposits, Equal Love: How to Buy a Home Together Fairly

25 August, 2026 3 minutes reading time

Picture this: you and your partner finally find the perfect property. You have your mortgage agreement in principle, have booked the viewings, and are ready to make an offer.

Then comes the financial conversation.

Perhaps one of you has saved a larger deposit over the years. Maybe one partner has received an inheritance or financial help from family, while the other pays the moving costs. Unequal contributions are completely normal in today’s property market. However, when excitement takes over, couples often overlook the legal implications of unequal investments.

Here’s how you can protect your hard-earned money, keep things fair, and buy your home with complete peace of mind.

Why the 50/50 Default Can Cause Problems

When you buy a property with someone else in England and Wales, you choose between two types of legal ownership:

1. Joint Tenants: You own the whole property equally. If you sell, the law treats your shares as 50/50, regardless of who paid what. If one owner passes away, their share automatically transfers to the survivor.

2. Tenants in Common: You each own a defined, separate share of the property (such as 70/30 or 60/40). You can also leave your specific share to whoever you choose in your Will.

If you contribute £40,000 towards the deposit and your partner contributes £10,000, registering as Joint Tenants creates real risk. If the relationship ends down the road, the law assumes you intended an equal split. That means your partner could walk away with half of your savings.

Declaration of Trust

To prevent misunderstandings and protect both parties, you can put a Declaration of Trust (often called a Deed of Trust) in place alongside your purchase.

A Declaration of Trust is a legally binding document that sets out the exact financial arrangements between joint owners from the outset. Your solicitor drafts it during the buying process, ensuring complete clarity before you collect the keys.

While a court can overrule an agreement in certain circumstances later down the line, the document firmly establishes your shared intentions, especially if the relationship breaks down in the first few years.

A clear Deed of Trust resolves key questions from day one:

1. The Deposit: Does each person recover their original deposit back, before you split the remaining profit?

2. Mortgage & Bills: Do you split monthly mortgage payments 50/50, or proportionally based on your incomes?

3. Home Improvements: If one person funds a £15,000 extension or new kitchen, how does that increase their share of the equity?

4. Future Sales: What happens if one person wants to sell and the other wants to stay in the property?

Two Common Ways to Divide the Equity

Couples usually structure their Declaration of Trust using one of two methods:

1. The ‘Deposit Back First’ Approach. When you sell the property, you each receive your original deposit back first. You then divide any remaining profit (or loss) equally. This approach works best when both partners contribute equal amounts to ongoing mortgage payments and maintenance.

2. The Fixed Percentage Approach. You calculate your initial financial contributions and fix your ownership percentages from day one (for example, a 65/35 split). When you sell, you divide the net proceeds strictly according to those percentages.

Our Advice

Talking about money and worst-case scenarios rarely feels romantic, especially when you are busy choosing paint colours. Even so, having an honest conversation before you buy protects both of you. It ensures the partner contributing more feels financially secure, while giving the other partner clarity without unspoken expectations.

If you are planning to buy a home together, please don’t hesitate to get in touch. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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