Cohabitation Agreement Solicitors
If you live together with your partner as an unmarried couple it can be complex when separating, as the law does not provide for financial agreements for cohabiting couples as it does for married couples or those in a civil partnership.
Without a cohabitation agreement or a living together agreement, there is often little that can be done to resolve financial disputes when separating from a cohabiting partner by using standard family law proceedings.
The family courts could be used in certain cases, but this largely depends on how property and businesses are owned, e.g., jointly or as tenants in common.
What Is a Cohabitation Agreement in the UK?
More couples than ever before are now choosing to cohabit, possibly as a heterosexual or same-sex couple, without getting married or entering a civil partnership. Some buy a home together and some start a family without ever having their relationship legally recognised.
Although living together as a cohabiting couple may seem no different from living together as a husband and wife or civil partners, your respective legal rights are markedly different when it comes to separating if things do not work out as planned.
Cohabiting does not allow the same legal rights as a marriage or civil partnership in the eyes of the law. Consequently, couples living together with assets or debts, whether individually owned or shared, can experience financial issues and uncertainties upon separation.
The solution… A cohabitation agreement can go some way to offsetting the absence of rights afforded by marriage or civil partnership by preventing lengthy disputes when separating.
A cohabitation agreement is a legal document entered into by each cohabiting partner. It sets out agreed intentions and arrangements in relation to any property and other assets or debts owned individually or jointly following a relationship breakdown and subsequent separation.
Are Cohabitation Agreements legally binding in the UK?
Strictly speaking, cohabitation agreements are not legally binding in England or Wales in the sense that courts must uphold them, but in a similar way to prenuptial agreements, the courts will consider them as part of any application when they are drafted and executed properly.
Therefore, a cohabitation agreement or living together agreement is a legally binding contract provided you obtain legal advice before preparing the agreement and it is signed as a deed.
When is getting a Cohabitation Agreement a good idea?
There are various reasons why you may be considering an agreement of this nature, but here are some of the most common scenarios:
- You’re moving in together for the first time – It can clearly lay out what the rights are for both parties in regards to property ownership.
- One party has no intention to get married – You may wish for some legal protection if you never plan to get married.
- One party already owns a property – If you want clarity on what is to happen with it if you have moved in or are going to be moving in. This can help stop claims in the future for a beneficial interest in a property.
- If there is a clear disparity in wealth – If you want to document who owns what or how assets will be divided if you break up.
Cohabitation Agreement Service
The best way for cohabiting couples to protect themselves is to draw up a cohabitation agreement, or a living together agreement as they are sometimes known.
Our cohabitation solicitors can do this for a fixed fee of just £599 including VAT.
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- Solicitor drafted Cohabitation Agreement to your exact needs
- Professional legal advice on the implications of the agreement
- The agreement is sent to your partner’s solicitors if they have one
- All correspondence from your partner’s solicitor will be dealt with
- We advise on any requested contract amendments or objections
- The original cohabitation contract is securely stored for you
What are the benefits of a cohabitation agreement?
The primary benefit of a cohabitation agreement is to provide clarity to both parties over what the future arrangements look like for owned & shared assets, debts, and responsibilities.
Furthermore, an agreement helps reduce the chances of couples ending up resenting each other should the worst happen, and they break up.
Key benefits of a cohabitation agreement include:
- Prevents future disagreements by establishing an entitlement – making an agreement can prevent emotional or irrational decisions immediately after a breakup.
- Provides both parties with clarity if the relationship does not work out as planned – who owns the house, who pays what bills and what happens to joint bank accounts or pensions etc. (how are savings and jointly owned assets distributed).
- Protects yours and your children’s future – what are the financial responsibilities towards each other, arrangements for children in the event one party becomes ill and can’t work or even dies (can also include next of kin rights).
- Can save money – by establishing an entitlement from the outset and providing clarity there is less chance of requiring legal advice or action in the future.
What can be included in a cohabitation agreement?
There is a range of issues that can be included in a cohabitation agreement, mainly involving financial support & affairs. Some of the essential points are:
- Who owns which assets and what if any are the shared assets
- How should assets be divided in the event of a breakup
- How should expenses be shared whilst cohabiting
- Who is responsible for any household debts
- Who will pay the household bills upon separation
- Outlining the financial responsibilities of each party regarding any children
- How should the shared family home be dealt with if the couple separates (eg should the house be put up for sale and the proceeds divided)
Cohabitation agreements can also include provisions regarding what should happen to certain assets in the event of the death of either party.
However, the best way to specify any intentions regarding the distribution of assets following one’s death is best dealt with by drawing up a will.
Once the agreement is in place, it should be reviewed at regular intervals, especially if there have been any significant life events such as the birth of a child.
Frequently Asked Questions
Can you draft your own cohabitation agreement?
A cohabitation agreement can undoubtedly help prevent financial disputes between couples in a cohabiting relationship. But can you draft your own cohabitation agreement?
The straightforward answer is yes. You can draw up your own contract using a free online cohabitation agreement template. However, the more important question is “should you draft your own cohabitation agreement?”
Firstly, if contemplating drafting your own living together contract its essential that you are familiar with the new laws for cohabiting couples.
You also need to be aware that cohabitation agreements are only legally binding if they are drafted correctly and include specific legal clauses whilst also meeting certain pre-contract conditions.
Ultimately, if you want a robust agreement that is likely to be upheld in court then you are well advised to instruct a cohabitation solicitor to help draft the agreement for you.
Otherwise, you may save money at the outset, but it could cost you dearly if the agreement doesn’t stand up to scrutiny when needed.
What are the rights of unmarried couples?
A cohabiting couple is simply an unmarried couple who live together, and those couples now represent I in 5 of all couples that live together.
But although cohabitation is common practice, there is still confusion about the legal rights and responsibilities of cohabiting compared to marriage in England and Wales.
Cohabitating couples do have the same legal protection in areas such as domestic abuse, but cohabitation gives no legal status to a couple in the same way as it does in a marriage or civil partnership when it comes to financial matters.
Sadly, many people are still unaware of this, so you may wish to read our feature unmarried couples rights upon separation for more details while also learning about the myths of common law marriage.
What is a beneficial interest in property?
Cohabiting couples that do not marry have fewer legal rights upon separation than their married counterparts, especially when it comes to property.
When an unmarried couple lives in a jointly owned property both parties will retain their individual rights that come with legal property ownership upon separation.
But if the property is owned entirely by just one partner, their former partner will not generally be entitled to any share of the equity in the property.
Though, there is a way for the non-owner to claim rights to the property owned by their former partner, even if they are unmarried. This approach is called registering a beneficial interest in a property.
A beneficial interest in property provides a non-owner with rights to occupy the property and/or to receive a financial share of the equity. To find out how to register beneficial interest in property see our guide: what is a beneficial interest in property.
What is a cohabitation agreement?
More couples than ever before are now choosing to cohabit, possibly as a heterosexual or same sex couple, without getting married or entering a civil partnership. Some buy a home together and some start a family without ever having their relationship legally recognised.
Although their living together as a cohabiting couple may seem little different to living together as a husband and wife or civil partners, their legal rights are markedly different when it comes to separating if things do not work out as planned.
Cohabiting does not allow the same legal rights as a marriage or civil partnership in the eyes of the law. Consequently, couples living together with assets or debts, whether individually owned or shared, can experience financial issues and uncertainties upon separation.
The solution – A cohabitation agreement can go some way to offsetting the absence of rights afforded by marriage or civil partnership by preventing lengthy disputes when separating.
A cohabitation agreement is a legal document entered into by each cohabiting partner. It sets out agreed intentions and arrangements in relation to property and other assets or debts owned individually or jointly following a relationship breakdown and subsequent separation.
What does the law say about cohabiting couples?
At present, there is no precise legal definition of what a cohabiting couple is, but a cohabiting couple is generally regarded as two people in a relationship of the opposite sex or same-sex who are not married or in a civil partnership and who form a living arrangement in the same household.
Many cohabiting couples assume that they will be protected under ‘Common Law’ after a long period of cohabitation and that they will be entitled to claim a share of their partner’s assets if they separate. But unfortunately, this is simply not the case.
The current law states that cohabiting couples must divide their jointly owned assets if they separate, but any individual assets such as pensions, savings and investments including property will not be divided.
As a result, when it comes to cohabitation rights, the current law allows cohabiting couples fewer rights on separation or death than is given to civil partners or married couples.
This situation can clearly leave some people who choose to cohabit in a vulnerable position, especially those who choose to stop working to raise a family while their partner has a career and builds up a pension and savings in their individual name.
If the relationship does not work out and the couple separate, the ‘stay-at-home’ partner will not be entitled to a share of their partner’s sole assets.
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