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If you are planning on buying a property and moving in with your partner, or are already living with them in a property that one of you owns, you should consider having a living together agreement or cohabitation agreement. This is a legally binding document which clearly records what property you each own at the start of your relationship and how you intend to manage your finances – such as paying the mortgage – when you are living together.
At David Gray, our family solicitors are experts in cohabitation agreements, and we can support unmarried couples with a legally binding document to protect their affairs.
What are cohabitation agreements?
A cohabitation agreement is a written contract between two people who live together but are not married or in a civil partnership and it outlines what should happen to money, property, possessions and responsibilities during the relationship and in the event of the relationship breaking down. From how you will deal with household expenses to receiving financial support through inheritance or assets from other relationships, a cohabitation agreement fills a legal gap married couples or civil partners do not face by clearly stating each partner’s rights and intentions.
A cohabitation can be legally binding if certain conditions are met. The agreement must be in writing, signed as a deed and entered into freely and without pressure, and both parties should receive independent legal advice from specialist family solicitors with experience in cohabitation agreements.
Laws around living together
Creating a cohabitation agreement is important because there is still no law in England and Wales that allows for the assets of cohabiting couples to be divided after a separation in the way that they would be after marriage or a civil partnership dissolution.
After a divorce, the law looks to share the family assets along principles of need and fairness which take a starting point of an equal division, irrespective of who legally owns any property. However, the same law does not apply to unmarried couples. If you separate after living together, the general rule is that you leave the relationship with any property or other assets that you legally own in your name, like savings or investments, Often, this results in a sense of unfairness or hardship, particularly if you or your partner feels like you have made significant contributions, like a financial or family commitment, which is not reflected in how your assets are split if your relationship ends.
Cohabitation disputes
While it is possible to make or defend a cohabitation dispute in the civil courts about how a property or other assets owned either by one of you or jointly should be shared, these cases are usually complicated and can be costly and time-consuming to resolve. These cases require the court to look at and interpret evidence of contributions and agreements which can be hard to prove, particularly after a long relationship.
The best way to avoid this difficulty and uncertainty is to enter into a cohabitation agreement, which you can update to record any change in your intentions during your relationship. This is a document that clearly records your circumstances and intentions, including:
- What property you each own at the start of your relationship
- How you intend to own any property that you buy during your relationship. This is particularly relevant if, for example, you buy a property you intend to own together but only one of you is able to take out a mortgage and own the legal title
- Who will be responsible for any mortgage payments and other outgoings, and whether you intend for this to be reflected in the shares you will have in any property if you separate
- Whether having children together will change how you intend to share or own your property
- How you would intend to divide your property and other financial assets if you separate
At David Gray, we have specialist cohabitation agreements solicitors who are specialists in the law affecting people who are cohabiting and we can advise you on all aspects, whether you are planning to live together or already doing so. Some of our cohabitation specialists are also trained collaborative family solicitors and we can offer you this option to use to agree to the terms of your agreement.
We have offices in Newcastle upon Tyne and South Shields where you can meet our family solicitors, including cohabitation agreements solicitors, in person to discuss your requirements.
If you would like further information or advice about cohabitation agreements or any other issue related to moving in with your partner and living together please contact Louise Law on 0191 243 8163.
Frequently asked questions
What is a cohabitation agreement?
A cohabitation agreement, or cohabitation contract, is a legally binding document between unmarried couples who are living together. The agreement records the arrangements for the property, assets, finances and children whilst you are living together and what would happen in the event of the breakdown of the relationship.
What should be included in cohabitation agreements?
A cohabitation agreement should reflect you and your partner’s unique situation. Typically, however, they tend to outline:
Property Ownership & Living arrangements
- Property ownership, highlighting who owns what and in what shares
- How mortgage payments or rent will be shared
- How bills and household costs will be divided
- How contributions to improvements or renovations affect ownership shares
Assets & Debts
- Debt responsibilities, stating who is liable for any existing or future debts during cohabitation
- What is to happen to any jointly held bank accounts, savings or investments
- Savings and pensions, noting how they are treated during the relationship and what happens if it ends
Children
- Intentions if you have – or decide to have – children to include financial contributions, living arrangements ongoing support for children of the relationship
Personal Property & Shares Possessions
- To specify ownership of items such as cars, furniture, pets or valuable items purchased together
Business Assets
- How business assets or shares are to be handled upon separation
Death
- Intended inheritance arrangements
- what happens to shared property on death
What happens if you separate
- How property will be divided or sold
- Whether on party can “buy out ” the other share
- How notice to leave the home should be given
Dispute Resolution
- Setting out an agreement as to what steps to take in the event of separation such as mediation or arbitration
These factors are some of the most important things to include in a cohabitation agreement, but it is important to remember that this isn’t just a one-time document. Cohabitation agreements should be reviewed and changed whenever your circumstances change.
Do I need a cohabitation agreement?
In short, a cohabitation agreement provides financial security. Couples who live together and are not married do not have the same legal protection and rights as married couples or civil partners. A cohabitation agreement sets out what happens to assets and responsibilities during and after your relationship and provides peace of mind and protection to the couple and their family. A cohabitation agreement can also be useful alongside your Will and provide protection to your partner in the event of your passing. You can seek advice in respect of a cohabitation agreement before you plan to live together, once you are living together or following a life event such as having children or purchasing a house together. It is important to seek specialist legal advice solicitors who specialise in family law to ensure the agreement is legally binding upon you both.
What happens when unmarried couples break up?
Couples who live together and are not married do not have the same legal protection and rights as married couples. Unmarried couples cannot claim against the assets of the other following the breakdown of the relationship, except in limited circumstances. You can contact our family law team to discuss your individual circumstances. You would each retain assets you hold in your sole name and any joint assets would be dealt with between you by agreement or applying to the Court. You may have to sell joint property and our property team can assist you if this becomes necessary.
Is there such a thing as a common law marriage?
No. If you and your partner are not married but are living together you may wish to explore with a solicitor how to protect your interest in any assets you both may have. The law is very different to married couples, and there is no guarantee that you will be financially secure should you separate, regardless of how long you have been together.
We are not married but ex-partner is making claim on my house- what can I do?
Whilst your ex-partner may not be a legal owner of the property, that does not mean they may not have an interest in it. This area of the law is complex and it is best to take legal advice sooner rather than later, particularly if you receive Court papers, as there are strict rules to follow and cost consequences should you be unsuccessful.
How much does a cohabitation agreement cost?
The cost of cohabitation agreements depends on the complexity of your situation. An agreement detailing basic assets will be cheaper than one detailing more significant assets. Our cohabitation agreements solicitors can provide information on fees based on your circumstances.
When should a cohabitation agreement be updated?
Cohabitation agreements are documents that should be updated regularly, whenever yours or your partner’s circumstances change. For example, if you get a new job and your financial situation changes, if you have children, if you sell a significant asset like another property or a car, or if you lose your job, your cohabitation agreement should be updated to reflect these changes in your life.
