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Cohabitation agreement lawyers & divorce solicitors

For cohabiting couples, there are specific things to consider when moving in together or buying a house

Our family lawyers are on hand to give you sound advice about cohabitation agreements

Call 01572 490 660

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Cohabitation agreement lawyers & divorce solicitors

For cohabiting couples, there are specific things to consider when moving in together or buying a house

Our family lawyers are on hand to give you sound advice about cohabitation agreements

Call 01572 490 660

Next Steps

Request Free Discovery Call

Please provide your contact information, and we will organise a complimentary, commitment-free discovery call at a time that works best for you.

Cohabitation agreements

The law relating to non-married couples is very different. Indeed, many people believe that if they have been living with someone in a cohabiting relationship they may be regarded as a common law husband or wife. Common law exists in some countries, but not in the England and Wales. The concept of a “common law wife” is a myth. As lawyers we campaign for a change in the law to help cohabiting couples as we see regularly the injustices that cohabitees suffer from.


Those who intend to enter a cohabiting relationship should be aware of the legal differences between unmarried couples and married couples and they need to understand that they will not have the same rights upon separation.
If you are considering entering a cohabiting relationship, there are, however, steps that you can take to protect your financial position, such as making a cohabitation agreement.

 
A cohabitation agreement records the arrangements you make with your partner when you decide to live together. It covers your and your partner’s rights and responsibilities in relation to your new home, financial arrangements between you both, and what would happen if you decide that you no longer want to live together.


Such agreements are popular because they can avoid the stress and cost of a legal dispute further down the line if you and your partner split up and / or the cohabitation ends.

 
A cohabitation agreement can also be used to record ownership of valuable personal property, such as cars, furniture or art. Any items that you may both use and enjoy but are to be retained by the owner if the living-together arrangement ends. 


Who can enter into a cohabitation agreement?

Cohabitation agreements are popular with people who want to formalise their financial and living arrangements both during cohabitation and in the event of the cohabitation coming to an end. They’re usually agreed by couples who have decided not to marry or enter into a civil partnership but have decided to live together.

They are also used by people who have decided to pool their financial resources and purchase a property to live in together. If purchasing a property together you should also consider other legal documentation in addition including a document called a Declaration of Trust which could record the shares each party has in the property. 

The pros and cons of a cohabitation agreement

Cohabitation agreements can be an extremely useful way to remove any doubts over property and assets when a couple move into together. They may seem unromantic, but they are a practical means to giving both parties peace of mind. On the flip side, there are one or two issues with cohabitation agreements that you should be aware of.

Pros

  • Avoid the cost and uncertainty of litigation - former ‘cohabitees’ can spend a fortune on court costs to determine their respective shares in property or assets after a relationship break-down. A cohabitation agreement reduces the possibility of a dispute about ownership when a cohabitation ends.
  • Individual autonomy - entering into a cohabitation agreement gives you and your partner the flexibility and freedom to organise your financial affairs as you wish, both during and following cohabitation. Some cohabitees do want to make arrangements to support their former partner financially following the breakdown of their relationship, particularly if they have children together.
  • Preservation of assets - imagine that you have saved for years to pay the deposit on a new home, or your parents have given you funds to be able to afford it. A cohabitation agreement can safeguard your investment when you move in with someone or you buy a house together. Not surprisingly, parents will sometimes insist on such an agreement when they have given so generously to their child. Careful consideration must also be given to having a Declaration of Trust to define each party’s share. 

Cons

  • Uncertainty about enforceability - There is uncertainty about whether the terms of a cohabitation agreement will be upheld and enforced by a court. Cohabitation agreements were historically void on public policy grounds because they were deemed to encourage sexual relations outside of marriage. Time has moved on, however, and social values have changed. Now, the view expressed by many experts is that cohabitation agreements that cover the financial and property affairs of cohabitees are persuasive.
  • Cost - Depending on the parties' circumstances and the complexity, entering into a cohabitation agreement can be expensive. Many people enter into agreements to buy a jointly owned property when finances are already strained. Despite the benefits that these agreements offer, many cohabitees do not want to incur the additional costs of negotiating and executing a cohabitation agreement. However, with the significant costs that can be incurred by parties when sorting out finances on separating you may ask, can I afford not to have an agreement?
  • Risk of relationship breakdown - There is no escaping the fact that cohabitation agreements are practical but unromantic. If your partner suggests making one, you could be forgiven for thinking they have one eye on when the relationship ends. It is common for people to perceive such a request as their partner doubting their sincerity and commitment to the relationship. It is worth considering that relationships often struggle when money matters are not openly discussed. A healthy relationship requires openness and understanding and if a clear understanding is reached on finances this can strengthen a relationship.

Conclusion:

Cohabitation agreements offer significant benefits such as avoiding costly legal disputes, maintaining financial autonomy, and safeguarding personal assets. They provide clear financial arrangements during and after cohabitation. However, there are drawbacks, including uncertainty about enforceability, potential expenses, and the risk of appearing unromantic or distrustful. Despite these downsides, the clarity and security provided by cohabitation agreements often outweigh the disadvantages.

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Cohabiting couples, unlike married couples, don't have automatic legal rights when they separate. This can lead to uncertainty, especially about finances and property ownership. Talking to a solicitor can help navigate these potential issues. 

We can advise you on drawing up a cohabitation agreement when you move in with your partner, which outlines how you'll share things like property, finances, and even responsibilities if you have children, in case the relationship ends. This provides peace of mind and avoids future complications if things don't work out.