Cohabitation Agreements

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A cohabitation agreement is a legal document designed to protect partners. As the number of cohabiting couples rises, these agreements are becoming increasingly relevant, although they remain under used compared to their potential benefits.

What Are Cohabitation Agreements?

Cohabitation agreements set out the financial arrangements and responsibilities between a cohabiting partner. This includes how assets such as property, savings, and personal belongings will be divided in the event of a relationship breaking down. It can also cover how debts and household expenses are divided, and even what provisions are made for children, although arrangements for children can be more complex.

The main purpose of a cohabitation agreement is to provide clarity and protection. Unlike married couples or those in civil partnerships, cohabiting partners have limited legal rights under UK law. There is no such thing as a ‘common law partner’. If a cohabiting relationship ends, partners may find themselves in a precarious position regarding any shared assets or property, because the law doesn’t automatically grant them the same rights as married couples.

A cohabitation agreement can help mitigate these risks by clearly setting out what each partner is entitled to.

How Do You Get a Cohabitation Agreement?

To create a cohabitation agreement, both parties should seek independent legal advice to ensure that the agreement is fair and legally binding. The process typically involves:

1. Consultation with a Solicitor: Both partners should consult with separate solicitors to avoid conflicts of interest. The solicitors will help draft the agreement to reflect the couple’s wishes while making sure it complies with UK law.
2. Disclosure of Assets: Each partner must fully disclose their financial situation, including assets, debts, and income. This transparency is crucial for the agreement to be valid.
3. Drafting the Agreement: The solicitors will draft the agreement based on the couple’s discussions and negotiations. Once both parties agree on the terms, they sign the document in the presence of their solicitors.
4. Review and Update: As circumstances change, such as the birth of a child or a significant change in financial status, the agreement should be reviewed and updated to remain relevant.

A well-drafted cohabitation agreement can provide peace of mind, but it’s important to note that UK courts retain the power to override such agreements if deemed unfair or if they do not meet certain legal standards.

Who Are Cohabitation Agreements For?

Cohabitation agreements are designed for couples who live together without being married or couples that are in a civil partnership. They are particularly beneficial for those who own property together, have children, or have significant financial assets or debts. Even if a couple doesn’t have substantial assets, an agreement can still be useful to outline how everyday expenses will be managed and what will happen in case the relationship ends.

Use of Cohabitation Agreements in the UK

Despite their benefits, cohabitation agreements are not widely used in the UK. Some studies suggest that only a small percentage of cohabiting couples actually have a formal cohabitation agreement in place. Estimates vary, but it’s generally believed that fewer than 10% of cohabiting couples have such an agreement.

This low uptake can be due to several factors, including a lack of awareness, the perceived complexity, the cost of legal proceedings and the assumption that such agreements are unnecessary. Many couples mistakenly believe that they have similar rights to married couples, a misconception often referred to as a “common-law marriage.”

Cohabitation agreements not only offer valuable protection for cohabiting couples, but they also address the legal gaps that exist for those not married or anyone in a civil partnership. They can prevent significant legal and financial complications should a relationship break down, making them an important consideration for any cohabiting couple in the UK.

Our friendly matrimonial team at Bowcock and Pursaill are on hand to answer any questions about cohabitation agreements, or to help you to draw up an agreement. You can contact our Head of Family and Matrimonial, Caroline Gregg on 01538 399199, cg@bowcockpursaill.co.uk or Jodi Attwood-Boot, jb@bowcockpursaill.co.uk.