Cohabitation has become an increasingly common choice for couples in the UK, offering the benefits of companionship and shared living without the formalities of marriage. However, the legal landscape for cohabiting couples is distinct from that of their married counterparts, necessitating careful consideration of various issues. Enter the cohabitation agreement – a legal document that outlines the financial arrangements and rights of partners in case the relationship falters.

A well-drafted cohabitation agreement offers a roadmap for financial arrangements and potential pitfalls and seeking legal advice and addressing these issues proactively can provide cohabiting couples with the clarity and security they need to enjoy their shared life.

Here, Andrea Huckstepp, a Partner and one of our family law experts, explains some of the key issues you will need to consider when entering into a cohabitation agreement.

Legal differences from marriage
Understanding that cohabiting couples do not have the same legal rights as married couples is fundamental. In the absence of a formal marriage, the legal system does not automatically recognise the financial and property rights of cohabiting partners. Therefore, a cohabitation agreement becomes essential to establish the terms of the relationship and protect the interests of both parties.

Financial arrangements and asset division
One of the primary purposes of a cohabitation agreement is to define how financial matters will be handled during the relationship and in the event of a breakup. This includes outlining how income, expenses, and debts will be managed, as well as specifying the division of assets acquired during the cohabitation. Your most important asset is likely to be your home, and the cohabitation agreement should determine what property will remain separate and what will be considered joint property.

Independent legal advice
Both parties entering into a cohabitation agreement should seek independent legal advice. Having separate legal representation ensures that each partner fully comprehends the terms and implications of the agreement. Legal advisors can guide individuals through the nuances of the agreement, ensuring it aligns with their interests. Once the terms of the agreement have been finalised, each specialist family lawyer will sign a certificate confirming they have explained the consequences of the document.

Termination and dispute resolution
Clearly outlining the circumstances under which the cohabitation agreement can be terminated or modified is vital. Additionally, the agreement should include provisions for dispute resolution mechanisms, such as mediation or arbitration, to avoid lengthy and costly legal battles.

In the event of relationship breakdown or if a dispute arises, the terms of a cohabitation agreement are likely to be upheld by a court if both parties have entered into it freely and had the benefit of legal advice.

Your next steps
Detailing each partner's financial responsibilities can prevent disputes and uncertainty down the line. A cohabitation agreement not only protects both partners but also provides clarity and fairness.

We can assist you with specialist legal advice and guidance according to your individual circumstances. We will listen to you, advise you and guide you through the process. To get in touch with our family law specialists, call us on 01843 234000 or email family@boysandmaughan.co.uk. Alternatively, you can look up all our family law specialists and choose who you would like to speak to or fill in our simple online enquiry form on this page to request a call back.