What Is a Cohabitation Agreement & Why Do I Need One?

The Risks of Living Together Without Protection

If you live with your partner but aren’t married, you may assume you have legal protections. You don’t.

• You have no automatic right to each other’s property: If you live in a house owned by your partner and your name isn’t on the deeds, you don’t have an automatic legal claim—even if you’ve contributed to the mortgage or home improvements. If you break up, you could be left with nothing unless you can prove a financial interest, which often requires expensive legal proceedings.
• You are not each other’s next of kin in a medical emergency: If your partner is seriously ill or in an accident, you don’t have an automatic right to make medical decisions for them or even be informed of their condition. Hospitals will prioritise family members, meaning a parent or sibling could have more say than you.
• If one of you dies, the other might not inherit anything: If your partner dies without a will, their assets will be distributed according to UK intestacy rules, which do not recognise unmarried partners. Their estate could automatically go to their children, parents, or siblings, leaving you with nothing—even if you’ve spent years building a life together.

What Are The Financial Rights of Cohabiting Couples?

Property Ownership

How cohabiting couples own property together can heavily impact how it is divided in case of a separation.

If the property is owned jointly, either as joint tenants or tenants in common, the court may have the authority to determine the fair division of the property.

However, if the property is solely owned by one partner, the other may have to prove their direct contributions towards the property to claim a share through what is known as a beneficial interest in a property.

Inheritance Rights

In the unfortunate event of the death of one partner, cohabiting couples do not have automatic inheritance rights. Without a valid will, the surviving partner may not inherit any part of the deceased partner’s estate.

However, there may be provisions under the Inheritance (Provision for Family and Dependants) Act 1975 that allow a surviving partner to claim the estate if they were financially dependent on the deceased.

Pensions

Unlike married couples, cohabiting couples do not have automatic rights to each other’s pensions. This means that upon separation, a cohabiting partner cannot claim the other partner’s pension.

Cohabiting couples need to consider alternative arrangements, such as nominating each other as beneficiaries or seeking financial advice on pension planning.

Housing and Child Custody

When cohabiting couples with children separate, issues regarding housing and child custody may arise. The court’s primary concern is the best interests of the child.

Depending on the circumstances, the court may order provisions for housing or financial support for the primary caregiver and the children.

It is advisable to seek legal advice to understand the options available and ensure the best outcome for the children.

What Does a Cohabitation Agreement Cover?

A well-drafted cohabitation agreement should cover the following key areas to ensure clarity and financial security for both partners:

• Property ownership – Who owns the home? How is it split if you separate?
• Finances & debts – Who pays what? What happens to joint savings?
• Next of kin rights – Who can make medical decisions if one of you is incapacitated?
• Inheritance rights – A cohabitation agreement isn’t a will, but it can state your financial intentions.
• Children & parental responsibilities – If you have children, it can outline how they will be supported.

When Should You Get a Cohabitation Agreement?

Certain life events or relationship changes make a cohabitation agreement particularly important.

Whether making major financial decisions, planning for the future, or facing significant changes, having an agreement in place can prevent misunderstandings and avoid complications.

Consider a cohabitation agreement if any of the following apply to you:

• You’re buying a property together.
• One of you already owns a home that the other is moving into.
• One of you earns significantly more than the other.
• You have children or plan to.
• One of you is financially supporting the other.
• You expect an inheritance or other financial changes.
• You have joint savings, investments, or shared debts.
• You run a business together or one partner owns a business.

How much does a Cohabitation Agreement cost?

Cohabitation agreements can vary in cost depending on how you go about obtaining one.

The cost of a cohabitation agreement to be drafted by solicitors will range from £899 to £3,000, depending on the complexity of your agreement and where you live.

Our Cohabitation Solicitors can help you save thousands in legal fees by assisting you for just £899 fixed fee.

What About Common Law Marriage?

In the United Kingdom, the term “common law marriage” is widely misunderstood. Common law marriage does not hold any legal status in the UK.

Many believe that cohabiting couples who live together for a certain period of time acquire the same legal rights as married couples, but this is not the case.

A couple is often considered to be in a common law marriage when they live together and present themselves as husband and wife, yet this living arrangement does not confer any of the legal protections or obligations of a formal marriage.

Couples seeking legal security comparable to marriage should consider formalising their relationship through marriage or a civil partnership or drafting a cohabitation agreement.