Cohabitation Agreements

A cohabitation agreement is a legal agreement between unmarried partners who wish to regulate the terms of their relationship. This can include how you manage your household payments/bills and financial assets.

This could be useful in the event of a break-up, as you will have a record of your intentions at the start of the cohabitation. This may reduce emotional pressures and help you agree on matters fairly and amicably.

More and more, Cohabitation Agreements are being used to provide clarity for unmarried couples wishing to regulate the terms of their relationship. An agreement can provide written evidence of what you intended at the outset, as to your respective ownership of property, and what you each intend to happen in the future.

A Cohabitation Agreement can include agreements on residential property, joint bank accounts, financial assets, children or even pets. You may want to consider some of the following points:

• Respective ownership of any property
• In the event of a break-up, who will continue to live in the household
• Each parties’ contribution to household bills, rent or mortgage
• Outstanding debts, loans or overdrafts (including liabilities)
• Savings or existing bank accounts
• Joint savings that accrue during the relationship
• Life insurance policies
• Ownership of joint items such as cars, furniture or sentimental items
• If you have children, how you will support them financially
• In the event of a break-up, who will care for any pets

Potentially, you may have a claim for a breach of contract. Additionally, you may have further statutory claims.

Yes, a Cohabitation Agreement can be re-drafted at any point, if necessary.

Cohabitation Agreements can be enforced as a contract. If the following criteria are met, the agreement can usually be relied upon in the event of a dispute:

• Each party receives independent legal advice on the terms of the draft agreement;
• There is full and frank financial disclosure by each party;
• Each party must enter into the agreement of their own free will;
• The terms of the agreement must be fair and reasonable; and
• The agreement must be made by way of Deed.

It is not mandatory. However, it is advisable to enter into a Separation Agreement, especially if you are selling your property. A Separation Agreement will record your intentions through to completion of sale.