From Moving In to Moving Forward: Why Unmarried Couples Need a Cohabitation Agreement

AuthorBecky Hughes

If you are living with your partner but not married, do you know your rights? When we move in with our partner, we never envisage that things will end. Unfortunately, this can happen and if you are not married and do not have things in writing, you may not automatically be entitled to certain rights or assets you have invested in. Following Valentine’s Day earlier this month, Becky Hughes, Solicitor in our Family Law department, explores the importance of Cohabitation Agreements; what they are, how they protect you, and why they are essential when planning for your future.

What is a Cohabitation Agreement?

A Cohabitation Agreement is a written, signed document that outlines the rights and responsibilities of partners who live together but are not married. It will generally deal with three key areas:

Ownership and Debt - Clarifying who owns and owes what, and in what proportions
Financial Arrangements - Defining how finances will be managed during the relationship
Asset and Income - Establishing how property, assets and income will be shared if the relationship ends.

It is also wise to include provisions for future circumstances, such as the needs of any children, ensuring long term clarity and protection.

When should I make a Cohabitation Agreement?

A Cohabitation Agreement can be made at any time, either before you start living together or if you have already commenced cohabitation. A Family Lawyer can help you negotiate the terms of the agreement and ensure that it is written in a way that the Court will seek to uphold any terms included; this will hopefully ensure that there will be no dispute should your relationship breakdown.

Alternatively, if your relationship does breakdown, you could seek the assistance of a Family Mediator to help you and your ex-partner negotiate the potential terms of a Cohabitation Agreement.

Why should I make a Cohabitation Agreement?

Unlike in divorce or civil partnership dissolution, there are no rules that automatically apply if you split up from someone you have been living with. Contrary to popular belief, there is no such thing as ‘common law marriage’. Living with someone for a certain period of time does not mean you are automatically entitled to make a claim on their financial assets, or a share of their property post-separation. While there have been suggestions from the legal industry that there is a change in the law on this matter, the government has indicated that they have no current intention to alter this.

This means that where a couple has not been married or in a civil partnership, sorting out disputes about property without an agreement can be expensive and a lengthy process. Sometimes the matter has to be determined by a Court because an agreement cannot be reached. The aim of a Cohabitation Agreement is to reduce or eliminate potential disputes on separation. It may also provide couples with the opportunity to consider how living together might work in reality, and reflect on the shared financial responsibility before making the decision to cohabit.

What should I include in a Cohabitation Agreement?

A Cohabitation Agreement helps protect both partners by setting out clear financial and legal arrangements. Key areas to consider include:

Property - Clarifying property ownership is very important; does one partner own it, or do you both have a share? You should decide how mortgage payments, bills, and insurance will be managed and whose name they will be in. Property arrangements can be complex, but our Family Lawyers are here to provide expert guidance.
Finances and bills - Many people find it convenient to have a joint bank account when they live together. If you decide to do this, you should establish how contributions will be made and whether funds are considered equally owned. It should also be determined who is responsible for which household bills and outline how debts and credit cards will be handled.
Personal Possessions - During the course of a relationship, it is natural that you will buy things together. A Cohabitation Agreement can prevent disputes by specifying ownership of furniture, vehicles, and other valuable items. Setting clear rules in advance can avoid legal complications later.
Children - Although not legally binding, it is worthwhile thinking about whether you might like to provide for any children over and above the minimum expected child maintenance, such as contributions to school or university fees. You can also outline expectations for future parenting arrangements in case of separation.

What other things should I consider when cohabiting with my partner?

It is important to ensure that the Cohabitation Agreement is reviewed, and redrafted if you move property, have children or your circumstances change significantly. It is vital to ensure that the agreement always reflects the up to date circumstances of the relationship.

It is essential to be aware that marriage will invalidate a Cohabitation Agreement, as you will inherit greater claims on each other’s finances. You may want to consider a Nuptial Agreement instead, which our Family Lawyers will be able to advise further on this.

You should also consider making a Will so that if you pass away while living with someone, your wishes can be put into effect. Although it is possible in some circumstances for a cohabitant to inherit, there are no strict rules about what should happen so it is important that you make your wishes clear while you can.

Contact our Family Law Solicitors

If you would like to book an appointment, contact our Family Law Solicitors in our Andover, Romsey, Salisbury, Totton and Witney offices by completing our Contact Form, calling your local office or emailing info@parkerbullen.com.