Cohabitation Agreements

A Cohabitation Agreement is a written document signed as a Deed in front of witnesses. It is generally prepared in contemplation of cohabitees living together.

It will generally deal with:

• who owns (and owes) what at the time of the agreement, and in what proportions,
• what financial arrangements you have decided to make while you are living together, and;
• how property, assets and income should be divided if you separate.

You may want to cover the following:

• Your shared home

It is important to record how this is owned and whether there has been any separate agreement or promise that isn’t reflected in the legal documents. Who is paying the mortgage? If there are any endowment policies or other savings arrangements linked to a mortgage, what contributions are being made to those and how will they be dealt with if you separate? Are you going to insure each other’s lives?

• Money and paying bills

If you have a joint bank account, what contributions you are going to make to that account and what will the joint account be used for? If you are not using a joint account, who will pay which of the household bills? What about credit cards and debts?

• Pensions

Often overlooked, pensions sometimes give you the opportunity to make provision for loved ones. You may wish, for example, to agree nominations for death-in-service benefits.

• Personal possessions

You can consider who owns and/or who will keep items such as furniture, other household contents, personal items and cars.

• Children

You can agree child arrangements (how much time they will be with each parent) and who pays what towards their expenses.

Is a Cohabitation Agreement legally binding?

In England and Wales, Cohabitation Agreements are not strictly binding, but they are likely to be followed where the agreement is properly drawn up, where there has been financial disclosure, where the terms are reasonable, and each of you has had separate, independent legal advice on its effect. It is also prudent to include provisions that address potential future events, such as the needs of any future children, and also to review the agreement regularly.

When should I make a Cohabitation Agreement?

You can make a Cohabitation Agreement at any time, whether you are about to start living together or if you have been doing so for many years. You may be able to agree things between yourselves, or your family lawyer can help you negotiate this agreement.  You may also seek the assistance of a family mediator or work out what should happen using collaborative law. Once you have reached an agreement, your lawyer will have the agreement written up as a legal document.

Why should I make a Cohabitation Agreement?

Unlike a divorce or civil partnership dissolution, there is no one set of rules that automatically applies if you split up from someone you have been living with. There is no such thing as a ‘common law marriage’. Living with someone for a certain period of time doesn’t mean you are automatically entitled to financial support or to share their property after you split up. Having a Cohabitation Agreement will help avoid lengthy and costly negotiations or Court proceedings if you separate and provide protection to the financially weaker partner.

Many couples also find the process of making a Cohabitation Agreement means that they have the chance to think and talk about how living together is going to work financially, meaning that arguments about money are less likely later on.

Anything else I should know?

You may need to review the agreement if you move house, have children or your circumstances change significantly. It’s important to ensure that the agreement is kept up to date.

You should also make a Will so that if you die whilst living with someone, your wishes can be put into effect as your partner will not automatically inherit from you if you do not have a Will. Our Wills, Trusts & Probate team would be happy to assist and guide you through the process.

We offer a free exploratory call, so that we can discuss your needs and look to match your specific circumstances with the right specialist family lawyer in our team.