What is a Cohabitation Agreement?

What is a Cohabitation or living together Agreement?

Living together agreements or Cohabitation agreements are an increasingly popular option couples can opt for when they want to make sure they are protected in the event of separation but aren’t yet ready or wanting to get married. If marriage is contemplated, then a Pre-Nuptial agreement may be appropriate.

A living together or cohabitation agreement may be a legally binding document entered into by you both. It provides a record of your contribution, money, property and even children issues during the time you are living together.

Why do I need a Cohabitation or living together agreement?

Common law marriage does not exist in English law. The way in which income and assets are dealt with on the breakdown of a non-marital relationship is very different from what happens on divorce. There is a perception that couples who are living together will automatically be seen as part of a “common law marriage” and offered many of the benefits and security that married couples enjoy. This is not the case, and cohabitation claim cases are ever-increasing.

Cohabitation agreements can include a record of how you intend various costs and bills to be covered during your time together, as well as what you agree should happen to your assets in the case of relationship breakdown, illness or death. A Cohabitation agreement can protect your property if you have substantially more assets than your partner. It can also be used to make a provision for both parties in the event of a breakup, giving everyone involved a sense of security.

What happens if we are living together and then decide to separate?

For many unmarried couples, there is uncertainty about what will happen to their assets if their relationship breaks down. The law is quite complicated when it comes to who has a legal right over possessions bought jointly and it can be difficult to prove who has ownership of what. If you are the sole owner of the house, you may be concerned about the possibility of your partner claiming to have interest in it. If your name is not on the title to the property you live in, in the event of your relationship breaking down, you may not be entitled to stay and could be asked to leave immediately.

Unmarried couples do not have to maintain the other financially, which could leave you in a difficult position if your partner is the main income earner or large contributor to household costs.

In the event of death

You will not automatically receive any of your partners estates unless they made provision in their will. In some circumstances, you may also struggle to prove how much of the money in a joint bank account was your property. You may have a claim in law under the Inheritance (Provision for Family and Dependents) Act 1975.

A Cohabitation or living together agreement can assist you both in setting out not only the financial obligations during the relationship but also how things are resolved if they do not work out.

Talk to our experienced Family team for Clear, Precise Advice today on 01772 555 176