Cohabitation Agreements
Cohabitation Agreements
In today’s society a cohabitation agreement could be of significant importance to the health of a relationship which exists outside marriage. The failure to make provisions for your property rights, finances, health care, children etc could have a huge impact if the relationship were to break down.
So what is a Cohabitation Agreement?
A cohabitation agreement is a written formal contract/agreement which is entered into by life partners before living together in a permanent relationship. Couples who decide to live together and not get married or enter into a civil partnership should address the legal implications first. By addressing these implications in advance you can avoid any unnecessary complications in the future. Issues that can be addressed are:
- Who will own the property?
- Who will pay for what (Gas, Water, Electric etc)?
- Any possessions you may have as individuals or jointly.
- What about purchases you have made as a couple?
- Will the equity in the property be shared depending on how long you live together?
- What happens to the children?
- Finances and investments.
- Bank accounts
Taking care of such issues before the need to address them takes away some of the pressure and allows you to get on with the other aspects of a relationship and valuing each other.
Separation is never on the forefront of your mind when entering a relationship but if you think of it as an insurance policy, you may never need it but at least you will have the protection if things do not work out as planned.
How common are they?
Cohabitation is most common amongst men aged 30-34 and women aged 25-29. Normally people live together for an average of 2 years before converting to marriage or splitting up.
Is there such thing as a ‘common law marriage’?
No, the notion of ‘common law marriage’ does not exist. Many people are under the misconception that after a period of time (e.g. 1 year) they become “common law husband and wife”. The courts have not recognised this principle for over 200 years! Even though over 4 million people live together without getting married or entering into a civil partnership, the law has not yet caught up.
What happens to the property?
If you are buying a property together you should decide if you want to purchase the property as joint tenants or as tenants in common.
Joint tenancy is the most common way for married couples to buy a property as they both own the whole property and if one dies the other will automatically inherit the other half.
With tenants in common you each own a specific share of the property, it can be 50:50, 70:30 or 33:33:33 when 3 people buy together. On death the share of the property does not go to the other owners of the property, it goes to whoever it was left to according to their will.
Is an agreement possible if I want to purchase with a friend?
Yes, the agreement can be put in place between anyone wishing to buy a property together.
Are they legally binding?
In the past Courts did not regard Cohabitation Agreements favourably as they felt that the Court's jurisdiction should not be fetted by voluntary agreement. However, it is recognised that provided the parties receive independent legal advice the Courts are now more willing to consider and in a growing number of cases, uphold them.
Children
Any issues relating to children are dealt with under the Children Act whether the parties are married or not. Even though parties are not married, there is still an obligation on parents to support their children financially. You should also give particular thought to making a will, and to make provision for guardianship of the children in the event of the death of one or both parents.
Making a will
Another popular myth is that by living with someone you have a claim on their estate if they die. You don't. If one party dies without leaving a will then the surviving partner will not automatically inherit anything unless the property is jointly held.
Wills are essential for cohabitants and can cover property, savings, pensions, guardianship for children as well as the right to reside in a house. The lack of a will could lead to further litigation under the Inheritance (Provision for Family and Dependants) Act 1975 that asks the court to provide for a dependant but such claims are hard to pursue and are the last thing on the mind of a surviving partner following the death of a loved one.
What next?
For further information or for advice on cohabitation please contact Penny Lewis using the details below.
 01376 321311
 Send an email
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