Cohabitation Agreement Legal Expertise
What is a Cohabitation Agreement?
A cohabitation agreement is a legal agreement (contract) that is made between two individuals who are in a relationship but are not married or in a civil partnership, and who want to regulate their finances both during their relationship and if their relationship ends.
The agreement can include who pays for the mortgage and other bills, whilst they live together. It can also state what should happen to their property and any other assets that they have if they separate.
You can make a cohabitation agreement at any time, whilst you are cohabiting, and also before you move in with your partner.
The agreement can also be updated at any time by agreement between the couple to reflect any changes in the couple’s situation, for example, if they have children or if their financial circumstances change.
Why Have a Cohabitation Agreement?
There are specific laws that regulate how a married couple’s finances are to be regulated if their marriage ends.
By way of contrast, in England and Wales unmarried couples do not have any specific unmarried couple laws tailored in the event of their separation if their relationship ends.
For example, cohabitees are unable to have an automatic legal right to make claims against their former partner for maintenance for themselves or for a pension provision when their relationship ends.
Instead rather narrow trust and property laws will apply instead that may not necessarily be fair or a true reflection of their intentions or expectations.
Financial claims can be made in respect of property and they can make separate financial claims on behalf of their children but both can be complicated, risky, and an expensive legal process.
Having a cohabitation agreement that details exactly what will happen financially if your relationship ends, creates certainty, and clarity and should prevent or limit any future dispute and its related costs.
It can also protect your assets. For example, if your partner is moving into a property owned by you, they could potentially establish a claim against the property under trust law as a beneficiary. A cohabitation agreement regulates what specific interest will exist in that property.
What Assets Can a Cohabitation Agreement Cover?
A cohabitation agreement can cover the following:
- Ownership of property – in particular where one of the couple is the sole owner of the legal title
- Financial responsibilities – what share of the mortgage or rent you will pay
- Financial arrangements – how household bills will be dealt with
- Bank accounts and money
- Life insurance
- Pensions
- Legal ownership of physical assets
- Payment of debts
- Pets
- Next of kin rights and parental responsibility, particularly if children from previous relationships are involved
How Do You Get a Cohabitation Agreement?
We recommend that you and your partner discuss what you want the agreement to include – both in terms of how finances are to be dealt with whilst you live together and what will happen financially if there is a change.
This can include:
- Children being born,
- Death
- Inheritance
- Redundancy
- Separation
The agreement can include properties, vehicles, and pets – whether owned by you individually or jointly.
Once you know what you want the agreement to achieve, contacting one of our family law specialists for legal advice is the next step.
The solicitor will draft the agreement, and advise you on the law once you are happy with the draft agreement a copy will be provided to your partner.
They will be strongly recommended to get advice from their own solicitor so that they are independently advised on its legal implications. When you are both happy with it can be signed by you both.
Can You Change or Amend a Cohabitation Agreement?
Cohabitation agreements can be changed at any time, provided that both you and your cohabitee agree to it being changed.
Should your circumstances change, for example, if you have children or buy property together, your solicitor can make the appropriate amendments to your cohabitation agreement.
It is important that your cohabitation agreement accurately reflects your and your partner’s circumstances, including:
- Property title deeds
- Birth certificates
- Household expenses
- Shared assets
Is a Cohabitation Agreement Legally binding?
If a cohabitation agreement is properly drafted, clear, not ambiguous, reasonable, and free of legal jargon then it has the same standing as a legally binding contract between two people and is enforceable in a court of law.
It will be particularly potent if both parties have had independent legal advice.
If there is a future dispute a judge does have the legal power to overrule an agreed provision of the agreement but this is likely to be an exception.
What Makes a Cohabitation Agreement Valid?
For a cohabitation agreement to be valid, it must be entered into freely and voluntarily by both of the couples, set out in the form of a deed, signed by both cohabitees, and both cohabitees are aware of the consequences of signing the agreement.
Other Unmarried Services
Reach out to Our Expert Cohabitation Agreements Team
If you need help with your unmarried dispute, you’ve come to the right place. Our team of family lawyers has years of experience in cohabitation agreements so you can trust you’re in the best hands.
To chat with our team, phone us on 0333 202 6433 or send us an email at hello@mcalisterfamilylaw.co.uk.
