Cohabitation Agreements offer clarity, protection and peace of mind for couples who choose to live together without marrying or entering a civil partnership.
As more couples decide to cohabit, many are surprised to learn how limited their legal rights are compared to married partners and how vulnerable that can leave them if the relationship breaks down. A well-drafted agreement provides a sophisticated, forward-thinking way to safeguard your assets, define financial arrangements, and avoid future conflict.
Understanding Your Options as a Cohabiting Couple
What is a cohabitation agreement and why might cohabiting couples need one?
It is a binding contract between two people who live together but are not married or in a civil partnership.
Cohabiting couples may need one as it sets out each person’s rights, responsibilities and financial arrangements whilst living together, and what will happen on the breakdown of the relationship.
How do they work?
The validity of a cohabitation agreement is governed by contract law in England & Wales. They enable couples who are not married but who live together to clearly set out arrangements for how assets like property, savings, and debts should be divided if the relationship ends.
Do you need one?
If you either intend to or are already living with someone whom you are not married or in a civil partnership with, having a legal document like a cohabitation agreement is always a good idea to ensure you and your partner are both protected if the relationship were to ever breakdown.
Are you protected by common law marriage?
Common law marriage is a popular belief that couples living together for a long time gain the same legal rights as a married couple, but it is not recognised as a legal status in the UK.
Cohabiting couples in the UK do not have the same rights and responsibilities that married couples have unless they take specific legal steps.
The Legal Standing
Are they legally binding?
Yes, they are legally binding provided they are valid and enforceable.
What makes an agreement enforceable?
To be valid, the agreement must be entered into freely, without undue influence and there must be an intention to create a legally binding agreement. It must be signed as a deed by both parties and reviewed in light of any significant life changes.
For it to be enforceable, both individuals must seek independent legal advice and provide full and frank financial disclosure to ensure the agreement is fair and accurate.
Can they be challenged or overturned in court?
Whilst they are legally binding contracts, there may be occasions where they can be overturned. For example, where there is undue influence or pressure, incomplete or dishonest financial disclosure or where parties did not obtain independent legal advice.
Further difficulties may arise where they are insufficiently drafted, are not signed as a deed or the parties decide to marry.
Safeguarding Assets and Financial Arrangements
How does a cohabitation agreement protect property ownership for cohabiting couples?
It can protect property ownership for cohabiting couples by legally defining how the property is to be owned, their respective ownership shares and outlining what happens to assets if the relationship ends.
Can it set out how bills, mortgage payments and other costs are shared?
Yes, a it can set out how household expenses and all potential liabilities i.e. mortgage are to be shared between the individuals.
What happens to joint bank accounts and shared assets?
When a cohabiting couple separates in the UK, they do not have the same automatic legal rights to shared assets as married couples. A cohabitation agreement can specify how joint bank accounts and shared assets are to be split in the event of a breakdown of the relationship.
Reducing Risk and Preventing Conflict
Can it prevent future legal disputes between cohabiting couples?
A well drafted agreement can prevent or minimise future legal disputes between cohabiting couples as it clearly sets out how each partners’ property, savings, and debts should be divided on breakdown of the relationship. It provides clarity and prevents costly disputes arising in the future.
What happens if there is no cohabitation agreement in place when a couple separates?
If there is no agreement in place when a couple separates, the situation can be difficult as cohabiting couples do not have the same automatic legal rights as married couples if they separate. The Court does not have the power to make the same range of financial orders that are available to married couples who are divorcing.
Will an agreement affect child maintenance?
Agreements can include provision as to who will be responsible for child maintenance. However, any agreement made in relation to children will be limited by the Children Act 1989 and Child Support Act 1991 and will be open to review by the court. It cannot oust the jurisdiction of the court.
Planning, Reviewing and Updating Your Agreement
When should cohabiting couples put an agreement in place?
Ideally, cohabiting couples should put a cohabitation agreement in place before moving in together, but it is never too late to do so, even years into a relationship.
How often should an agreement be reviewed?
It should be reviewed periodically and updated where necessary to ensure it remains fair and reflects current circumstances.
You should aim for a review every three to five years, or when there has been a significant life event. For example, the birth or adoption of children or if you decide to marry.
Do both partners need independent legal advice?
Yes, it is important that both partners obtain independent legal advice when making a cohabitation agreement to ensure it remains valid and enforceable.
What should you include in an agreement?
It should clearly set out the practical and financial arrangements between you and your partner whilst living together, and if you were to separate.
It should include arrangements in relation to the following:
- Property and ownership
- Money and finances
- The ownership of contents
- Financial provision for any child(ren)
Speak to our Family Law experts
With the right advice, you can secure your financial position, minimise future risk, and make informed decisions together.
If you would like tailored support in preparing or reviewing an agreement, our experienced Family team can help guide you through the process. We take a partner-led, personal approach, ensuring your arrangements are thorough, fair and built to stand the test of time.
Key Contact
Simon Magner Mawdsley
Partner | Head of Family Law
Described by clients as "an excellent listener, open and engaging", "exceptional", "reassuring" and "insightful", Simon acts for a range of clients in all aspects of relationship breakdowns including divorce, resolution of financial matters, civil partnerships, cohabitation disputes, pre- and post-marital agreements, injunctions, and children matters.
