What exactly is a cohabitation agreement?
A cohabitation agreement is a formal written agreement between two or more people who live together or are planning to live together. Its purpose is to establish the rights of each person within the agreement, during the period of living together and afterwards, if circumstances change.
People who cohabit and aren’t married or in a civil partnership have fewer automatic rights under English or Welsh law than those who are married or in a civil partnership. This is where the cohabitation agreement comes in. It can establish where each person stands in terms of property, shared finances and what happens to these assets if the relationship broke down or one person wanted to leave. A cohabitation agreement is there to provide transparency, protecting both parties.
The good thing about a cohabitation agreement is that you can create one before you start living together, or further down the line. While it’s not automatically legally binding in the same way a Court Order is, if it’s written well and both parties have got separate legal advice, then it can carry significant weight and be taken seriously by the Court.
What will a cohabitation agreement cover?
A cohabitation agreement is flexible and unique, allowing your specific situation to be catered for. It can cover a range of aspects, but there are a few that are popular among many people who opt for cohabitation agreements.
- Property – a main asset that many people will be thinking about when setting up a cohabitation agreement is property. You can set out who owns what, including any properties purchased before moving in together, and any divisions if you end up separating in the future. Mortgage payments and property value increases can be included, as well as what happens if one party wants to sell the property but the other doesn’t.
- Shared expenses and finance – money can be a complex matter. A cohabitation agreement can help to ease the tension and create fair divisions. It can set out how everyday costs are split between the parties, from rent to bills to food shopping. As well, it can include details about opening joint accounts and how large expenses are managed. If you have shared savings, it can set out how these are dealt with in the event of a separation.
- Children – usually, a separate order is needed to deal with issues surrounding children, such as where they live, but a cohabitation agreement can lay out any plans to have children and their upbringing and financial support they’ll receive – this also applies if you already have children.
- Inheritance and wills – an important thing to note is that if you cohabit with your partner, you are not automatically entitled to inherit from them, like a married couple would. A cohabitation agreement can prompt both parties to create wills and record what they plan on doing with any inheritance.
- Pets – sharing a pet can be a heartwarming experience, but noting down who the pet will go to if there is a separation in the future and who the pet belongs to in your agreement can make things slightly easier if circumstances were to change.
- Personal possessions and assets – vehicles, savings and other valuables, these can be put into a cohabitation agreement to say who owns them or who will own them if there’s a separation.
- Businesses – a cohabitation agreement can protect business interests, for example if one person owns a business before the agreement, it can be set out in the agreement that they will continue to solely own it if they separate.
Why do cohabitation agreements matter?
While you’re not legally obligated to set up a cohabitation agreement, they’re extremely beneficial. Without this agreement, you and the people you live with may miss out on legal protection that could come in handy in the future.
What is common law marriage?
Common law marriage is the notion that if you live with your partner for a long time without marriage or civil partnership, you gain the same rights as if you were married. This isn’t true in England and Wales. If you live with your partner without being married or in a civil partnership, you will simply be cohabiting.
What happens if I don’t get a cohabitation agreement?
Generally, you won’t have as many legal rights as a couple who are married. You won’t have automatic rights to a share of a property, and you won’t automatically inherit if your partner passes away without having made a will. If you need to claim in the future following a separation, you might not be able to make any financial claims against them and in the event of a medical emergency, you most likely won’t be the next of kin.
While these may not seem like urgent matters, and to some they aren’t, they’re worth considering. A cohabitation agreement can cover many aspects and while it won’t cover everything, it’s a great starting point.
How can we help with your cohabitation agreement?
Our solicitors are experts in family law, and specialise in a wide variety of areas, including cohabitation agreements. But everyone’s different, and will therefore have different cohabitation agreement needs, so how can we help you?
- We’ll listen to you and your needs carefully, understanding your situation and tailoring the agreement so that it aligns with your unique case.
- Should your case end up in Court, you’ll want your agreement to be airtight. We’ll make sure that the agreement is written clearly and concisely, expressing your needs in detail.
- A Court will look more favourably at your agreement if both parties took individual legal advice before signing, so this is something we can ensure is in place.
- If you have any questions or queries, we can answer them. We pride ourselves on our breadth of knowledge and we will always put your needs at the forefront of the case. Confusing jargon? Gone. Kept up to date? Always.
Our family law team are dedicated to making your life easier when it comes to the complexities of law. We’ll aim to get you back to living your life as you want, while also feeling confident that we’ve done a good job with your case.
Why choose Farleys as your cohabitation agreement solicitor
Our specialists within the family law department strive to get the results you want. We take each case on and tailor our work accordingly, so you get a personalised experience that doesn’t feel copied. We’re recommended by The Legal 500 and Chambers & Partners, showing our dedication to our clients.
We aim to keep confusing legal terms at bay so that you understand, or we’ll explain plainly what they mean, and we’ll always be on hand to answer any questions you have about your case.
If you’re looking to set up a cohabitation agreement but don’t know where to begin, we’ll aim to set it up so that your needs and priorities are met.
