Cohabitation Agreement

A cohabitation agreement is a legal document between unmarried couples who are living together. It records the arrangements for finances, property and children while they are living together and the consequences of separating, becoming ill or dying.

An agreement can be made at any time, however, it is best to do so before you move in together. You may want to consider one if you decide to have children or get a mortgage. Without one you do not have many rights.

Cohabitation agreements can also be made between people who are not romantically involved – for example, friends or siblings.

Reasons for a cohabitation agreement: –

• Unmarried couples / cohabitees do not automatically have rights like married couples – even if you have lived together for a long time and have children.

• Having a cohabitation agreement in place can be helpful, alongside a will, if one of you becomes seriously ill, dies or if the relationship breaks down. It will protect you both, and any other family members who may be affected.

An agreement can make sure you have:

• a share of each other’s assets
• access to each other’s state pension
• next of kin rights in a medical emergency

A cohabitation agreement can also help you divide up bills and other responsibilities while you live together.

Before you start

You and your partner should look at your assets and discuss how you wish for them to be divided. Your assets could include the following:

• property
• investments
• pension
• savings

When drafting a Cohabitation Agreement, we will ask you for the following;

• the value of both of your assets, e.g. savings, investments, pensions
• if you rent or own a property, and whose name the property is in
• any property improvement work either of you have paid for
• both of your earnings
• if you or your partner have any children

It is also important that the other party obtains independent legal advice before signing the agreement to ensure sure it protects both of your interests and reflects what you both want.

Costs

The cost of getting an agreement can vary depending on your circumstances. This could be anything between £300 and £4,000.

You may have to pay much more in legal fees if something goes wrong, should you not have a cohabitation agreement in place.

Change of circumstances

If your circumstances change, for example, you have children, buy property together or move to another country, your agreement may not be legally binding if it is not updated to reflect your change in circumstance.