If you live with someone but are not married, you have the option to put a cohabitation agreement in place. This is a legally binding document that sets out your arrangements for property and finances, to include provision for children.
Unmarried couples have far fewer rights than married couples unless they put a cohabitation agreement in place. The agreement can be made before you live with someone or at any time after you move in together. People often put one in place when they buy a home or have children.
An agreement can be used by anyone who is living with someone else, for example, friends or relatives who are sharing a home.
What is a cohabitation agreement?
A cohabitation agreement sets out the details of your assets and agreed responsibilities and how these will be dealt with between you and your cohabitee.
What should be included in a cohabitation agreement?
The agreement can include whatever you wish, but will usually deal with the following:
- Property ownership, to include property owned previously and property bought or lived in together
- Financial provision for children
- Savings, money and bank accounts
- Pension provisions
- Payment of mortgage or rent
- Payment of other bills
- Who will be responsible for debts
- Ownership of valuable items such as cars, jewellery and art
- Pets
Do I need a cohabitation agreement?
Cohabiting couples do not have the same rights as married couples, which can make separating financially difficult in some cases. By way of example, where someone has lived in a shared home for many years, raising children there but without their name on the title to the property they do not have any stake in the property and could be asked to leave.
While it may be possible for them to make a legal claim in some cases, it is not easy and the outcome is far from certain.
A cohabitation agreement can give you the certainty of knowing that, should you separate, you will have the assets agreed upon. While it may be hard to think about splitting up, putting an agreement in place can help prevent disagreements from arising in the future.
If you do separate, then with an agreement in place, the process is likely to be easier and less stressful.
Drafting a cohabitation agreement
A cohabitation agreement should be drawn up by an expert family lawyer, with both parties taking independent legal advice before signing. This step is important if the agreement is to be legally binding in the future.
Where legal advice is not taken, one party may be able to claim that they did not properly understand the implications of what they were signing or that they signed under duress.
Amending a cohabitation agreement
A cohabitation agreement should be reviewed from time to time, particularly in light of any major life changes such as the birth of children or if the financial situation of one party alters considerably.
An agreement could become unenforceable if it becomes unfair to one party for any reason.
What happens if someone dies?
When one of an unmarried couple dies, their survivor does not have any legal right to inherit anything, unless a Will has been made. For unmarried couples, it is therefore particularly important to ensure a valid Will is in place.
Cohabitation agreements and other legal agreements
A cohabitation agreement will not overrule certain other agreements or legal liabilities such as the obligation to pay child maintenance or orders made in respect of children.
It cannot alter the terms of a Will.
Where a declaration is made in the cohabitation agreement about property ownership, a trust in the property can exist where an interest has been promised to someone, even if they are not named as a legal owner.
Unmarried partners do not have an automatic right to pension entitlement from their partner’s pension unless they have been named as their nominated beneficiary. This should be dealt with by way of the cohabitation agreement, otherwise, a claim would have to be brought under the inheritance (Provision for Family and Dependants) Act 1975 if the individual was being maintained by the deceased.
Contact us
At Witan Solicitors, we can advise you and draw up the right cohabitation agreement for your unique situation.
If you would like to discuss your options with an expert family lawyer, email us at info@witansolicitors.co.uk or fill in our contact form. We have offices in Birmingham and Northampton.
