Cohabitation Agreements are a must for couples living together  

Cohabitation Agreements are a must for couples living together. Without one you have few legal rights if you separate.

There is a common misconception that couples who live together are protected by ‘common law’. There is no such law. Unlike marriage and civil partnership relationships, cohabitation provides no legal status to a couple.  Without a cohabitation agreement in place, you could be left in difficult financial circumstances. See our Cohabitation and the Law video.

According to Government statistics, unmarried cohabiting couples are the fastest growing type of family in the UK. The latest statistics reveal that cohabiting-couple families account for almost 1 in 5 families (19%). Additionally, there are increasing numbers of ‘second’ families, where children from different relationships live together.

With limited legal protections to address issues such as property ownership and division of assets, a formal cohabitation agreement is recommended. Sadly, many cohabiting couples are unaware of cohabitation agreements. They only seek legal advice when a relationship has broken down; by which time it is too late.

What are cohabitation agreements?

A cohabitation agreement is a legal contract between a cohabiting couple. It sets out how money, property, assets, and debt are dealt with during and after the relationship.

A cohabitation agreement can protect you financially in the event the relationship breaks down. The document sets out the details of what each party is entitled to post separation.

Ideally, a cohabiting couple will put a cohabitation agreement in place before moving in together. However, it can be done at any point within the relationship, provided you both agree and participate in the process.

What do cohabitation agreements cover?

Property and assets – This may relate to a property you owned before you moved in together and you want to keep ownership separate. Or, it could be a property you have purchased together but contributed to differently, for example in respect of the deposit or renovations.

Finances – Set out what happens to any joint accounts or pensions. The agreement can also detail how rent or mortgage payments and household bills will be shared and how any debts will be dealt with.

Children – How your children will be supported in the event of separation.

Don’t forget to make a Will

In a cohabiting couple, if one party should die the other does not automatically have the rights to property or assets left behind in the way that a married couple would. Cohabitation agreements do not typically cover inheritance rights. So, if you want to provide for your partner on death, then it is important to have made a Will.  See our Marriage and Cohabitation blog for more information.

For advice and support on cohabitation agreements or any other aspect of Family Law, please contact:

Tony Neocleous
E: tneocleous@bird-lovibond.co.uk
T: 01895 256151

Victoria Payne
E: vpayne@bird-lovibond.co.uk
T: 01895 256151

Michelle Everest
E: meverest@bird-lovibond.co.uk
T: 01895 636037