It is becoming increasingly common for couples in the UK to live together and even raise a family without ever getting married. Cohabiting couples have fewer legal rights than married couples, therefore, many are now choosing to enter into cohabitation agreements.
What is a cohabitation agreement?
It is a legal document between the couple (whether heterosexual or same-sex couple) who have agreed to live together. This written contract is also known as a relationship agreement or living together arrangement.
It is a legally binding agreement that records the arrangements between the couple who intend to live together. A cohabitation agreement sets out each party’s rights, responsibilities, and financial agreements during and following cohabitation.
It also outlines how the finances will be shared while living together and upon the split and death of a partner.
What does a cohabitation agreement cover?
These kinds of agreements also cover other arrangements like
- financial support for children
- bank accounts
- Payment of debts
- household bills
- cars and shared vehicles
- Possessions
- Pensions
- Life insurance
- Care for pets
Benefits of Cohabitation Agreements
Unmarried couples do not have the same rights as married couples even if they have lived together for a long time. A cohabitation agreement provides valuable certainty, security, and the following benefits:
- It outlines each party’s legal rights and beneficial interest in the property to reduce the likelihood of a dispute about the ownership later if the cohabitation ends.
- A cohabitation agreement allows the couple to reach a financial arrangement suitable for both of them, during and following the cohabitation.
- It saves couples from the financial repercussions of the split and safeguards their own financial security.
Should I sign a cohabitation agreement?
Many cohabitees are under the assumption that the ‘common marriage law’ gives them legal protection similar to married couples. This assumption is a myth as no such law exists that gives cohabitees the same legal rights as married couples.
Therefore, having a legally binding document like a cohabitation agreement is useful to avoid difficulties and disagreements in the event of separation.
This agreement gives the couple a clear understanding of their financial commitments, rights, and responsibilities.
When should cohabitees draw up a cohabitation agreement?
Cohabitees can enter into the agreement at any point during the relationship, before moving in or after living together for many years. It should be periodically reviewed and updated as necessary.
It should be amended in accordance with any major life events such as buying a property, having a child, or any change in financial status.
Can I write my own cohabitation agreement?
A person can find many free cohabitation agreement templates to help him draft his own living arrangements. It is possible to write your own cohabitation agreement, however, it would only be legally enforceable if drafted correctly.
Contact a solicitor before drafting and signing the agreement for legal advice and make sure that it protects your interest.
