Unmarried couples do not have the same legal protections as married couples upon separation. Our helpful family law solicitors can advise you how to protect your financial interests in the event of relationship breakdown.
Entering into a cohabitation agreement provides each of you with the necessary legal protection for the share you have in any joint assets - ensuring a fair split should the relationship end.
A popular myth exists about the concept of the “common law spouse”: many people still believe that if they live with their partner and aren’t married, they are entitled to a share of the assets should the relationship break down.
However, unless there is clear evidence of joint ownership then the Family Court has very little power to divide assets where parties are not married.
Claims can still be made for the financial support of children (this is separate to statutory child maintenance) but not for spousal maintenance (i.e. financial support for a former husband or former wife.) Instead, any claims will be determined by reference to a combination of complex trust and property law.
There are proposals for the law to be amended to give greater rights to separating cohabitants but these are yet to be implemented.
How a Cohabitation Agreement Will Protect You
To avoid any uncertainty as to what will happen in the event that the relationship breaks down, you should consider entering into a cohabitation agreement.
A cohabitation agreement involves you and your partner agreeing upon the share each of you should have in any joint assets (property, bank accounts, cars and other items) as well as your liabilities in respect of household bills, credit cards, etc. It can also cover other aspects of your relationship, such as pet ownership.
Once agreed, our family team can then assist you in ensuring that it is a legally binding document that you can both rely on to avoid any future uncertainty.
In the event of a split, unmarried couples do not have the same legal rights as married couples. There is no such thing as a ‘common law marriage’, regardless of how long a couple have lived together. In law as it currently stands, their potential claims are extremely limited, with only being able to claim money held in a jointly owned property. If the separating couple have children, they do also have other potential claims but only limited to claims on behalf of the children, not themselves.
A cohabitation agreement is designed to give unmarried couples who live together certainty in relation to what rights they have or do not have when it comes to assets. This allows a level of security for couples who share large assets such as houses and businesses.
A cohabitation agreement sets out what arrangements should be made if a couple separates. Shared responsibilities and assets are typically included, like property, joint debt, or even any pets. The following information should be included in a cohabitation agreement:
Property you owned before moving in together
Property you purchased after moving in together
Any household expenses that you have
Inheritance and wills
Any children that you have together
Unmarried couples aren’t automatically eligible to inherit each other’s estates in the event of a death. In addition to creating a cohabitation agreement, it’s equally as important to create a will.
When it comes to creating a cohabitation agreement, you’ll need to set out what happens to your property in the event of a split. In addition to this, you’ll also need to lay out plans for any shared business or material assets, like cars. Knowing what to include can be complicated – but working with an experienced solicitor can make the process simpler.
If you get married after signing a cohabitation agreement, you should seek the advice of a solicitor. In lots of cases, your agreement can carry some weight in a financial claim if the marriage were to break down; but it all depends on how the document is worded. It is best to enter into a pre-nuptial agreement in such circumstances.
There is no right or wrong time to draw up a cohabitation agreement. Often, couples decide to sign one after they have bought a house together or share a business. There is nothing wrong with this, and it is best to have one rather than not. However, it is best to enter into such agreement early on, to ensure that your interest in any shared or individually owned assets are protected at the outset.
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