If you are living with a partner but are not married or in a civil partnership, you do not automatically have the same legal rights as a married couple if your relationship ends.
A cohabitation agreement can help you decide in advance how property, finances, and other practical matters should be handled, reducing uncertainty and the risk of disputes later.
Our experienced family law solicitors can advise you on whether a cohabitation agreement is appropriate, explain your options and prepare an agreement tailored to your circumstances.
Monan Gozzett advises clients across England and Wales on cohabitation agreements and related family law matters.
How A Cohabitation Agreement Can Protect You
Many couples live together for years, buy property, share financial responsibilities and raise children without marrying or entering into a civil partnership.
However, the idea of a "common law marriage" can be misleading. Simply living together for a long period does not give unmarried couples the same financial rights that arise through marriage or civil partnership.
This can become particularly important where one partner owns the family home, you have contributed different amounts towards a property, or your finances have become closely connected over time.
A properly prepared cohabitation agreement can provide greater certainty by recording what you have agreed and what should happen if your circumstances change or your relationship ends.
You can read more about the legal risks cohabiting couples often do not realise.
What Is A Cohabitation Agreement?
A cohabitation agreement, sometimes called a living together agreement, is a written agreement between two people who live together or intend to live together as a couple.
It can set out your respective rights and responsibilities during the relationship and record what you have agreed should happen to property, finances and other assets if you separate.
The agreement should reflect your individual circumstances rather than relying on a standard template. Taking legal advice can help ensure the terms are clear, appropriate and accurately record what both parties intend.
When Should You Consider A Cohabitation Agreement?
There is no single type of couple who needs a cohabitation agreement. It may be particularly useful if:
- one of you already owns the property in which you will live
- you are buying a property together but contributing different amounts
- one partner will contribute more towards the mortgage or household expenses
- parents or other family members are contributing money towards a property
- either of you has significant savings, investments or other assets
- you want clarity over debts and financial commitments
- you have children from a current or previous relationship
- you want to reduce the potential for disagreement if you later separate
A cohabitation agreement can be made before you move in together or after you are already living together.
What Can A Cohabitation Agreement Cover?
Your agreement can be tailored to the way you organise your property and finances.
Property
The agreement can record who owns a property, how mortgage payments or other housing costs will be met and what you intend to happen if the property is sold or the relationship ends.
Financial contributions
You can record how you intend to divide regular household expenses, mortgage or rent payments and other financial commitments.
Savings, assets and debts
An agreement can identify assets that belong to each of you individually, record how jointly owned assets should be treated and clarify responsibility for debts and liabilities.
Personal possessions
You can record ownership of valuable belongings and what should happen to jointly purchased items if you separate.
Children
If you have children, we can advise you on how your wider family circumstances may affect the agreement.
Separate legal principles govern issues such as child arrangements and child maintenance and cannot simply be determined by a cohabitation agreement.
Cohabitation Agreements And Property Ownership
Property is often one of the most important reasons to enter into a cohabitation agreement.
This is particularly the case when you are buying a home together but contributing different amounts, or when one partner owns a property and the other will contribute towards the mortgage, renovations, or household expenses.
Depending on your circumstances, a Declaration of Trust may also be appropriate to record your respective beneficial interests in a property. A cohabitation agreement and a Declaration of Trust address different issues and may sometimes be used together.
If a dispute has already arisen over property following separation, different legal principles may apply, including those under the Trusts of Land and Appointment of Trustees Act 1996 (ToLATA).
Our solicitors can advise you on the most appropriate approach for your circumstances.
Are Cohabitation Agreements Legally Binding?
A properly prepared cohabitation agreement can create legally enforceable obligations between the parties.
However, the agreement needs to be drafted carefully, and both parties should understand what they are agreeing to. Entering into the agreement voluntarily, providing appropriate financial information and obtaining independent legal advice can all help reduce the risk of disputes about its terms later.
This is one reason why relying on a generic online template may not provide the same level of protection as an agreement prepared for your individual circumstances.
How Does The Cohabitation Agreement Process Work?
1. Understanding your circumstances
We will discuss your relationship, property, finances and what you want the agreement to achieve.
2. Establishing the financial position
Depending on your circumstances, relevant information about property, savings, investments, debts and other financial interests may need to be provided so that both parties understand the basis on which the agreement is being made.
3. Agreeing and drafting the terms
We will advise you on the issues that should be addressed and the legal implications of the arrangements you are considering. The agreement can then be drafted to reflect the terms reached.
4. Independent advice and completion
It will usually be appropriate for each partner to receive independent legal advice so that both understand the agreement and its effect. Once the wording has been agreed and the necessary advice obtained, the agreement can be formally completed.
When Should A Cohabitation Agreement Be Reviewed?
It is sensible to review your agreement if your circumstances change significantly.
This could include buying or selling a property, having a child, receiving a substantial inheritance, a major change in either partner's finances or deciding to marry or enter into a civil partnership.
If you are planning to marry, you may wish to consider a prenuptial agreement, as marriage changes the legal framework governing your relationship and finances.
Reviewing your agreement when circumstances change can help ensure that your arrangements continue to reflect your intentions.
How Much Does A Cohabitation Agreement Cost?
The cost of preparing a cohabitation agreement will depend on the complexity of your circumstances and the issues that need to be covered.
A relatively straightforward agreement involving one property may require less work than an agreement involving several assets, significant wealth, business interests, or detailed negotiations between the parties.
At the outset, we will discuss what you want the agreement to achieve and explain the likely work involved. We will then provide clear information about the anticipated costs before substantive work begins.
Why Choose Monan Gozzett?
Cohabitation agreements can involve important decisions about your home, finances and future. Our approach is to provide clear, practical advice so that you understand both your current legal position and the effect of the arrangements you are considering.
Senior Associate Jennie Apsey advises clients on cohabitation agreements and disputes as part of our specialist Family Law team.
We can help you identify the issues that need to be addressed, explain their legal implications and prepare an agreement suited to your individual circumstances.
Whether you are preparing to move in together, already share a home or want greater certainty over your existing arrangements, we can help.
Cohabitation Agreement FAQs
A properly drafted cohabitation agreement can create legally enforceable obligations.
Careful drafting is important. Both parties should enter into the agreement freely and understand its implications. Appropriate financial disclosure and independent legal advice can also help reduce the scope for future disputes over its terms.
It is generally advisable for each party to receive independent legal advice.
One solicitor cannot normally advise both partners where their individual interests may differ. Separate advice also helps ensure that each party understands the agreement before signing it.
Yes. You do not have to make the agreement before you begin living together.
It can also be prepared after you have lived together for some time, particularly if you are buying a property, changing your financial contributions or making another significant financial commitment together.
Potentially.
If one partner owns the property, an agreement can record the parties' intentions regarding ownership, financial contributions and what should happen if the relationship ends.
The precise advice will depend on how the property is owned, the contributions being made and whether any separate property documentation is required.
A Declaration of Trust is generally used to record beneficial ownership of a particular property.
A cohabitation agreement can be broader and address other aspects of your finances and living arrangements, such as household expenses, debts, savings, and what you have agreed should happen if you separate.
Depending on your circumstances, you may benefit from having both.
Your rights will depend on your individual circumstances, including how property and other assets are legally and beneficially owned.
Unlike divorce, there is no general power allowing the court to redistribute an unmarried couple's assets simply because it considers a particular outcome fair.
For more information, see The Legal Risks Cohabiting Couples Often Don't Realise.
If you would like to speak to our expert legal team about this, or any related subject then please contact our team by phone on 0207 936 6329, Email or by completing our Quick Contact Form below.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved