Cohabitation Agreement – All You Need To Know
Cohabitation can be complex to navigate when it comes to the law.
To avoid complicated disputes over bank accounts, children, property and other assets, it’s an excellent idea to draft what is called a ‘Cohabitation Agreement’. This clearly defines the rights, responsibilities and legal position of each person, so that in the event of (e.g.) death or separation, there is clear legal recourse.
You can get started with this Cohabitation Agreement Example Template to make this much, much easier. Simply select the options that apply to you in this legally pre-approved template, and then print it out in Word/PDF format.
What is a Cohabitation Agreement?
A Cohabitation Agreement, also known as a relationship agreement or a living together agreement, is a written contract between two individuals who live together and are in an intimate relationship, but are not married or registered civil partners. This agreement outlines how the couple will divide their current assets and liabilities if they end their committed relationship with each other.
Couples who cohabit do not have the same legal rights as married couples or registered civil partners, but they may share the financial obligations of a residential property or guardianship over children. You should consider this fact carefully when you enter into a Cohabitation Agreement.
However, without the same legal rights as a married couple, a cohabiting couple that breaks up must work harder to prove any entitlements. A Cohabitation Agreement helps protect the interests of people in committed, long-term relationships if their relationship ends.
This is not to be confused with a ‘prenuptial agreement’, which is formed in advance of two parties being married to describe how assets will be divided if they separate.
You can download a free cohabitation agreement here.
Can I write my own Cohabitation Agreement?
Thankfully, it is entirely possible to craft your own Cohabitation Agreement which is legally binding. The best way to do this is to use this free Cohabitation Agreement Example Template UK, which is pre-tested and vetted so that you can be sure that it contains everything you need.
When do I need a Cohabitation Agreement?
It is advisable to create a Cohabitation Agreement when both parties are on good terms and can make decisions that are in their best interests without needing a third party to intervene.
Approaching the contract with positive intentions makes it easier to discuss the awkward subject of separation. It is also recommended to review and update the document every few years to ensure it continues to reflect your current wishes.
The link above provides a Cohabitation Agreement sample that can be used if both parties agree on the terms. The template requires information on the start date of cohabitation, shared and separate assets and debts, as well as children if applicable.
It is important to note that courts often require each party in a Cohabitation Agreement to seek independent legal advice when drafting the contract for it to be valid. However, using this Cohabitation Agreement Sample can save time and money spent on a lawyer. Both parties must sign the agreement appropriately, generally with at least one or two witnesses.
What should I include in a Cohabitation Agreement?
A Cohabitation Agreement is a customisable legal document that should include certain fundamental elements, tailored to the couple signing it.
One essential aspect that a Cohabitation Agreement should include is the ownership of any property owned by one partner before cohabiting. This confirmation will ensure that the other partner cannot make a claim over it.
Additionally, if a couple purchases property together, a Cohabitation Agreement can record their respective beneficial ownership of the property and the proportion of the property each partner is entitled to, even if only one partner’s name is on the agreement.
The agreement can also outline household expenses, living expenses and joint accounts, including how they will be managed in case of a relationship breakdown.
Although not technically a part of the Cohabitation Agreement, it’s crucial to recognize the importance of having a will when cohabiting but unmarried, as unmarried partners do not automatically inherit each other’s estate if one partner passes away without a will.
What happens to property if unmarried couples separate?
When an unmarried couple separates, the person whose name is on the property title or tenancy agreement usually retains property rights. However, a Cohabitation Agreement can help determine property ownership upon separation by outlining shared interests and entitlements to any joint property gained during the relationship.
The agreement may also specify separate assets or liabilities. If the couple breaks up, authorities will enforce the agreement rather than using statutes or case law to determine ownership.
A legal document called a declaration of trust is something couples can draw up to explain the division of property in events like death or separation.
What happens if a cohabiting partner dies?
In the event of a partner’s death, cohabiting couples without certain legal documents have no automatic entitlements to a share of their partner’s property. If the couple owns the property as joint tenants and one partner dies, their share goes to the remaining owner. If they are tenants-in-common, the partner’s share will count towards their estate, and property rights will be distributed according to law.
A valid Last Will and Testament will separate property rights and inheritances to specific people, and then will be recognised and enforced by courts, regardless of the deceased’s legal relationship status. Without a Last Will, a Cohabitation Agreement can serve as evidence to support a claim for an award from the deceased partner’s estate.
Cohabitation and child support
Cohabitation can impact child support. While a Cohabitation Agreement can’t determine future child arrangements, it’s important to consider parental responsibilities when drafting the document.
If someone has parental responsibility for a child, they are legally responsible for meeting the child’s financial, legal, and familial needs. However, an unmarried father doesn’t automatically gain parental responsibility like a child’s birth mother does.
If you are considering a Cohabitation Agreement and have children from a previous relationship, it’s essential to decide if both partners want to claim parental responsibility, including legal adoption. These choices can affect future child arrangements.
When cohabiting parents separate, they need to agree on child arrangements. If they can’t reach an agreement, the couple may have to go to court to settle issues related to child support, custody, and access. In such a scenario, a cohabiting father who doesn’t already have parental responsibility can apply for it.
How much does a Cohabitation Agreement cost?
A Cohabitation Agreement may fluctuate depending on the couple’s situation. One partner’s solicitor usually manages the procedure, including the initial meeting, drafting the document, making adjustments, and ultimately ratifying it. While one solicitor may give legal advice to one party, the other party may have to pay for their own independent legal advice on the agreement.
Hourly rates are charged by some solicitors, while others provide a flat rate. The fees can vary from £750 to £3,000, plus an additional £500 for independent legal advice from a second solicitor. The costs will vary based on the complexity of the couple’s circumstances.
While a Cohabitation Agreement may appear costly to some, it is small compared to the cost of resolving issues in court, where costs can quickly reach tens of thousands of pounds.
You can also create your own agreement by using the form builder below.
Lastly, seeking independent legal advice before signing the agreement is essential for it to be legally binding, and it can increase the chances of it being upheld should it reach the court in case of a relationship breakdown.
Are Cohabitation Agreements legally enforceable?
Yes, Cohabitation Agreements are legally enforceable in the UK, provided they meet certain criteria. They must be written, signed by both parties, and ideally include a statement confirming that both partners intend the agreement to be legally enforceable. Each party should also seek independent legal advice to ensure fairness and avoid future disputes.
Can a Cohabitation Agreement be overturned?
Yes, a UK Cohabitation Agreement can be overturned, but only on certain occasions. Courts generally uphold them as long as they properly drafted, and entered into voluntarily.
However, an agreement may be challenged or overturned if:
- It was not entered into voluntarily – If one party was pressured or coerced into signing, then the agreement can be deemed invalid.
- Lack of proper legal advice – If one party did not seek independent legal advice before signing, the court may question whether if they understood the terms.
- Fraud or misrepresentation – If one party provided false or misleading information then is good ground for the courts not to enforce it.
- Significant change in circumstances – If there has been a major change in circumstances (e.g., children being born, financial hardship), the court may choose to modify or disregard parts of it.
Does a Cohabitation Agreement have to be notarized?
Technically, Cohabitation Agreements do not have to be notarised. They will still be considered legally binding, but it is helpful to notarise the agreement anyway in order that the signatures might be verified and that both parties have the intent to sign the contract.
Similarly, the courts often require both parties to consult a solicitor to ensure the document is fair in advance of approving it. The free template in this article includes a form for a solicitor to fill out which signals their approval of the Cohabitation Agreement.
How long does a Cohabitation Agreement last?
A Cohabitation Agreement can end when one person dies, when either person gets married or enters a civil partnership, or when one person formally notifies the other. The key is maintaining a current agreement. You should update it after significant life events such as marriage, buying property, or having children.
In summary
Getting a Cohabitation Agreement is essential for couples who are in a serious and committed relationship but aren’t legally married, as it provides legal protections.
When couples decide to live together and share their finances, they can save money and enjoy the benefits of a shared kinship. However, if the relationship ends, having a written agreement on how to divide shared assets and liabilities can protect the individual interests of both parties.
