Crazy for love? Your dream love nest beckoning?

When it comes to buying a house, just make sure love doesn't make a fool of you, warns Caroline Bourn, Buss Murton Law.

A recent Supreme Court ruling should serve as a warning to all couples who live together and are not married, to make sure they document all financial arrangements, particularly those relating to the ownership of property.

The case of Jones v Kernott has taken four years to decide what shares Ms Jones and Mr Kernott held in their property. The couple bought the property in Essex in joint names in the mid 1980s and lived in it together with their two children.

When they separated in 1993, Ms Jones continued to live in the property and she took responsibility for all the bills and the mortgage. In 2007 Mr Kernott then asked for the property to be sold and to receive a half share.

At the time they bought the property, they should have set out in a legal binding document which detailed what shares they held in the property. At the time they split in 1993 they agreed they would have both been entitled to a 50% share in the property.

In this case, the Supreme Court was able to use its own discretion and backed a previous ruling which considered a fair settlement was that Mr Kernott had only a 10% interest in the property.

If you are buying a property with a partner, always ensure you understand the different ways in which you can hold property, known as becoming joint tenants or tenants in common. You can be tenants in common either in equal shares or in different shares.

Be particularly aware if you are putting down a deposit which is not matched by the other person. Equally if you have already brought a property in your sole name and you meet someone and you move in together, don't automatically put the property into your joint names.

When people are in a very happy relationship they don't want to think about what might happen if they separate when they are in a very happy relationship but a few pounds spent ensuing the correct legal documents are in place can, and will, save thousands of pounds at a later date.

Caroline Bourn is a solicitor at Buss Murton Law LLP, www.bussmurton.co.uk and can be reached at cbourn@bussmurton.co.uk