Cohabitation Agreements: Protect Your Rights and Finances

Cohabitation agreements are legal documents that outline the rights, responsibilities, and expectations of a couple who is living together but not married. Many people believe that couples living together can become “common law spouses”. Whilst this is not the case, it is possible for people living together to make financial claims against each other, upon separation.

While the specific contents of cohabitation agreements may vary based on individual circumstances.

Here are six common things often included in such agreements.

1. Financial Responsibilities – The agreement should outline how financial matters will be handled during the relationship. This could include living expenses, rent, mortgage payments and other bills divided between the couple. Typically, this will further address issues like joint bank accounts and shared debts.
2. Property Ownership and Division – If the partners acquire property together or during the course of their cohabitation, the agreement can detail how ownership and division will be managed in case the relationship ends. This can include estate, vehicles, furniture, and other assets.
3. Asset and Debt Distribution upon Separation – In the event that the relationship ends, cohabitation agreements can specify how the assets and debts acquired during the relationship will be distributed. This can help avoid disputes over property division and minimize legal battles.
4. Support and Maintenance Obligations – Cohabitation agreements can also address the issue of financial support or maintenance in case the relationship ends. This is particularly relevant if one partner significantly contributed to the other’s financial well-being during the relationship.
5. Child Arrangements: If the couple has children together or one partner has children from a previous relationship, the agreement can outline time to be spent with children and where they will live, and child support arrangements in case of separation.
6. Dispute Resolution Mechanisms – To prevent costly legal battles, the agreement can establish methods for resolving disputes that may arise during the relationship or after its termination. This may include mediation.

What happens if Cohabitation Agreements are not in place?

In the absence of a Cohabitation Agreement, on separation, a cohabitee may try to suggest that a Trust has arisen. In respect of the property and, as a result of discussions held between you, or by conduct and due to their financial contribution, they may assert a claim to receive a lump sum and have acquired a beneficial interest in your property. Financial contributions could encompass payments towards the mortgage, property improvements, or indirect contributions, such as carrying out enhancements themselves on the property. This can still be a complex area of law, with varying interpretations and outcomes.

Having a Cohabitation Agreement in place from the outset can avoid confusion and, ideally, pre-empt any applications to the court. Such agreements serve as a clear reference point, outlining the rights and obligations of both partners, mitigating potential disputes, and providing a structured framework for addressing various scenarios that may arise during the course of cohabitation.

How can Taylor Bracewell’s Family team help?

When it comes to all things family, we at Taylor Bracewell know that life can get a bit tricky, especially when cohabitation is involved. Our Family Law team are here to make things easier.

If you’re thinking about moving in together or already have, but haven’t quite gotten around to the legal nitty-gritty, don’t sweat it! We’re pros at crafting personalised Cohabitation Agreements. If the unexpected happens, and you’re facing the aftermath of a relationship breakdown, without a plan, no worries! We’ll help you untangle the complexities of property ownership and financial matters on separation.

Our Family team can be reached by calling 01302 341 414 (Doncaster) or 0114 272 1884 (Sheffield), or fill out our online enquiry form.