Frequently Asked Questions
What is a cohabitation agreement?
A cohabitation agreement is a legal document. It can be enforceable by the court if it is properly executed, granted that both parties have:
- Been honest about their finances
- Each obtained separate legal advice upon its terms
In the event of a split, unmarried couples do not have the same legal rights as married couples, regardless of how long a couple has 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 has children, they also have other potential claims but are only limited to claims on behalf of the children, not themselves.
A cohabitation agreement is designed to give unmarried couples who live together certainty about what rights they have or do not have regarding assets.
What is included in a cohabitation agreement?
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 pets.
The following information should be included in a cohabitation agreement:
- The property you owned before moving in together
- The property you purchased after moving in together
- Any household expenses that you have
- Inheritance and wills
- Any children that you have together
What information is needed for a cohabitation agreement?
When creating a cohabitation agreement, you’ll need to set out what happens to your property in the event of a split.
In addition, 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 simplify the process.
What happens if cohabitants get married?
If you get married after signing a cohabitation agreement, you should seek the advice of a solicitor.
In many cases, your agreement can carry some weight in a financial claim if the marriage breaks down; however, it depends on how the document is worded. It is best to enter into a pre-nuptial agreement in such circumstances.
When should I draw up a cohabitation agreement?
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 shared a business. There is nothing wrong with this, and it is best to have one rather than not.
It is best to enter into such an agreement early on to ensure that your interest in any shared or individually owned assets is protected at the outset.
What about child arrangements if cohabitants separate?
Claims can still be made for the financial support of children (this is separate from 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 referencing a combination of complex trust and property law.