Before answering that question, is important to consider what a cohabitation agreement actually does and what it can be used for.
If you live with your partner, and are not married, you are seen to be “cohabiting”. This applies whether you are a same sex or opposite sex couple.
Having an agreement between you about certain financial matters should the relationship come to an end is important. It is crucial for both of you as a couple to understand what each other’s intensions are and to have your views and feelings clearly understood and agreed between you.
In addition, setting out what you both want to happen within a legally binding document results that your expressed intentions are set out and clearly determined. This can only be a good thing as it can save disputes further down the line. From a legal perspective, this is most certainly the best route to take.
These agreed intentions can be drawn up within a cohabitation agreement, sometimes referred to as a “living together arrangement” and shall need to be signed by both of those within the relationship.
What Does it Cover?
This is not an exhaustive list, but you can include many elements including: –
- Ownership of property alongside the ownership of the deposit used to purchase the home
- What percentage share of the mortgage/rent you each are expected to pay
- Who is responsible for household outgoings
- The ownership of bank accounts or other assets including cash, cars, furniture, other property, jewellery
- Agreements for the terms of any life insurance policies
- Defining what happens with each partner’s pension
- Who is responsible for payment of debts
- Who is responsible for pets
- Next of kin rights
Why should I have a cohabitation agreement?
Many couples believe that if they are living together, much in the same way as married couples do, that they are protected, in much the same way that married couples are. This is false.
The terms “common law couple” if often used, but no such law exists. Simply put, cohabiting couples simply do not have as many rights as married couples do. A cohabitation agreement can provide peace of mind to both partners within a relationship.
If you can agree these important financial matters and set them out within a document, signed by both of you, thereby making it legally binding; you will have the following.
- A clear understanding of what the financial commitments between you are
- Avoid any misunderstandings regarding your rights and responsibilities as you continue to live together, in particular with regards to ownership of property
- Avoid difficulties and disagreements should you later separate
- Clear evidence of your intentions should you have to go to court at any later stage
It can be executed either before living together or whilst you are currently living together. As it is a signed contract it is a legal document, thereby enforceable by the Court. However, it must be executed properly with both partners being entirely open and transparent about each other finances and both must have the opportunity to take their own independent legal advice.
In order for your cohabitation agreement to be valid, the following conditions must apply:
- Both partners must enter into the agreement freely and voluntarily
- The agreement should be set out in the form of a Deed
- Both of you must sign the document after taking legal advice
- You must keep the agreement up to date with any major life changes
How do I make a cohabitation agreement?
Simply give Jemma a call, text, WhatsApp on 07534 175310 so she can discuss this with you and also talk you through fees applicable in your case.
Jemma Wentworth is a family lawyer who offers family law services throughout the UK as a Consultant Legal Executive for Ann McCabe Solicitors.