What is cohabitation?
Cohabitation is a term used to describe unmarried couples who are in a relationship and live together. If you and your partner share a home, and are not married or in a civil partnership, you are a cohabiting couple.
Do unmarried couples have the same rights as married couples?
Despite what many believe, couples who live together do not have the same legal rights as couples who are married or in a civil partnership. They may have limited rights, such as:
- Claims arising from financial contributions they may have made towards their partner’s property;
- Rights to financial support for any children of the relationship;
- Claims on the death of their partner (depending on circumstances).
However, in general, couples who live together may be unprotected. What should an unmarried couple do if they do not wish to marry or enter into a civil partnership, but do wish to put in place financial arrangements in the event of changes to their circumstances such as the birth of a child, inheritance, purchase of several properties or their relationship breaking down? The answer is to enter into a cohabitation agreement.
How can cohabiting couples protect themselves?
A Cohabitation Agreement is a way to protect the financial interests of you and your partner. The agreement is a comprehensive and bespoke contract that formalises what cohabiting couples wish to happen in the event of separation or a death. It sets out mutually agreed plans for jointly and individually owned assets, property, finances, child arrangements and any other personal arrangements that couples wish to include.
The number of cohabiting couples has increased by 144% since 1996, meaning Cohabitation Agreements are becoming increasingly popular. In addition to providing security, Cohabitation Agreements are designed to:
- Provide financial protection for both parties
- Establish responsibility for jointly and individually owned assets including property, pensions and savings
- Define provisions for children
- Agree how financial obligations such as rent, mortgage and other household bills will be maintained