What are Cohabitation Agreements?

A Cohabitation Agreement is a legal document that outlines the rights and responsibilities of two people living together in a long-term relationship, but who are not married or in a civil partnership. Think of it as a sort of contract that sets out expectations and financial arrangements in case things don’t work out or if something happens unexpectedly.

It covers things like:

• Who owns what property (for example, the home or shared assets)
• How shared bills or debts will be handled
• What will happen if the relationship ends
• How assets and possessions will be divided if you split up
• If one partner has children from a previous relationship, how things will be managed
• Any financial arrangements, such as support for one partner after the relationship ends

In many ways, a Cohabitation Agreement helps ensure fairness for both partners and can prevent unnecessary arguments or confusion should things change in the future.

Why you might need a Cohabitation Agreement

You might think that living together as an unmarried couple doesn’t require legal paperwork. However, not having a Cohabitation Agreement can leave you exposed in certain situations. Here are a few reasons why having one can be essential:

1. To protect your rights

Unlike married couples, cohabiting partners don’t have automatic legal rights over each other’s property or assets. If you don’t have a Cohabitation Agreement, you might not be entitled to your partner’s property if the relationship breaks down, or you could be left with debts that you weren’t expecting.

2. To clarify financial arrangements

In a relationship, it’s easy to assume things about finances, such as how bills will be shared or who owns what property. Cohabitation Agreements clearly set out each person’s financial responsibilities, removing any grey areas or misunderstandings.

3. To avoid confusion if the relationship ends

If the relationship ends Cohabitation Agreements can make the process much easier to deal with. If you don’t have one, dividing shared property, finances, and other belongings can become much more complicated, especially if one partner feels that they’ve contributed more to the relationship.

4. To address future scenarios

Cohabitation Agreements can also address what will happen if either person decides to move out or if something happens unexpectedly, such as one person needing to take time off work or dealing with health issues. It offers a level of security for both partners, ensuring that both people are treated fairly, even in difficult situations.

What should be included in Cohabitation Agreements?

A Cohabitation Agreement should cover all the main issues that could arise during the course of your relationship. While every agreement is different and should reflect the unique circumstances of your relationship, here are some of the main things that should be included:

1. Ownership of property

This is one of the most important elements. If you own property together, your Cohabitation Agreement should outline who owns what. For example, if one person paid for the entire house or flat, this should be noted. If you own property together, the agreement should set out how the property will be divided if you break up.

2. Financial contributions

Clarify who is responsible for what when it comes to financial contributions like rent, mortgage payments, bills, and household expenses. For example, if one partner contributes more to the household financially, the agreement can outline how that might be reflected if the relationship ends, or it can help prevent arguments about what’s fair.

3. Division of assets

It’s important to have a plan for how shared assets (such as furniture, cars, or savings) will be divided if the relationship ends. This helps prevent misunderstandings and unnecessary conflict when separating.

4. Support payments

Sometimes one partner may need support from the other partner if the relationship ends. For example, if one person has been financially dependent on the other or has made sacrifices for the relationship, they might feel they should have financial support. This can be covered in Cohabitation Agreements.

5. What happens if you separate

Your Cohabitation Agreement should clearly outline what will happen if the relationship comes to an end. Will one person move out, and how will the property be divided? What happens to shared possessions? Having this written down in advance can help both partners navigate a breakup more easily and prevent future disputes.

6. Children from previous relationships

If either partner has children from a previous relationship, the Cohabitation Agreement can address their care and support during the course of the relationship and after it ends.

7. Inheritance

If you want to ensure that your partner inherits your property or assets after you pass away, you can include a clause in the Cohabitation Agreement to outline what each person’s rights are. However, remember that must also be addressed in a will.

Are Cohabitation Agreements legally binding?

A Cohabitation Agreement is legally binding if both partners agree to the terms and have signed the document voluntarily. However, to ensure that the agreement is enforceable, it’s important that both parties get legal advice before signing.

A solicitor can help make sure the agreement is fair to both parties and that it reflects your true intentions. Having a properly drafted Cohabitation Agreement can make it much easier to resolve disputes or clarify issues in the future, without the need for expensive court proceedings.

Can Cohabitation Agreements be changed?

Yes, a Cohabitation Agreement can be updated or changed at any time, but both partners need to agree to any changes. For example, if you decide to buy a home together, or if your financial circumstances change, your agreement can be amended to reflect this.

You should review the agreement periodically, especially if your financial situation changes, or if you make any significant decisions about property, savings, or investments.

What happens if you don’t have a Cohabitation Agreement?

If you choose not to have a Cohabitation Agreement, there could be risks. For example:

• Property ownership: If you don’t have an agreement in place, you may not be entitled to a share of the property you live in if the relationship breaks down. Equally your share may be limited even if you contributed more financially.
• Financial disputes: Without clear agreements in place about bills, rent, or mortgages, you could end up in a financial dispute that can be difficult to resolve.
• Rights on separation: If the relationship ends, you may find it harder to come to an agreement about how assets should be divided. It could lead to costly legal battles and a long, drawn-out process.

How do you create a Cohabitation Agreement?

Creating a Cohabitation Agreement is relatively simple, but it’s always a good idea to work with a solicitor to ensure everything is done correctly to make sure it is enforceable. Here’s how the process typically works:

Review regularly: As your relationship and circumstances change, you may need to update or amend the agreement.

Discuss your needs: Talk openly with your partner about what should be included in the agreement, and make sure you both agree on the terms.

Consult a solicitor: A family law solicitor can help you draft the Cohabitation Agreement to ensure it’s legally sound and covers all necessary areas.

Sign the agreement: Once you’ve agreed on everything, both partners will sign the document, and it will become a legally binding contract.

Is a Cohabitation Agreement right for you?

If you and your partner live together but are not married or in a civil partnership, a Cohabitation Agreement could be a useful way to protect both of you and clarify responsibilities. It can provide peace of mind, ensure fairness, and help avoid unnecessary conflicts in the future.

If you’re considering a Cohabitation Agreement or have questions about how it works, contact our family law team. We offer expert advice and guidance to help you protect your interests and navigate the process smoothly.

Need help with a Cohabitation Agreement?

Get in touch with our expert family law team today to discuss your options and ensure that you and your partner have the protection and clarity you need.

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