Cohabiting is generally defined as an unmarried couple who are living together in a long-term relationship. There are currently more than 3.5 million cohabiting couples in the UK.
Whilst that number continues to rise, many cohabiting couples are unaware that their legal protections are not the same as married couples regarding the breakdown of a relationship or the death of a partner.
One of the main ways couples can protect themselves is through a cohabitation agreement, in this article our family law experts will give you the main facts about cohabitation agreements.
What is a Cohabitation Agreement?
A cohabitation agreement is a legal document between you and your partner that sets out how you plan on sharing finances while you live together.
It gives both parties protection should the relationship break down or either partner dies as an agreement will have been made on who retains ownership of certain assets.
Why do you need a cohabitation agreement?
The law in the UK currently does not afford any financial protection to people cohabiting unless they are married.
This means if a relationship breakdowns one party could potentially be left with nothing if they had no assets of their own or if you are only cohabiting, you do not automatically inherit your partner’s estate when they die.
Courts will consider these agreements as part of any application in a similar style to prenuptial agreements, provided they are fair, neither party has been coerced into signing and legal advice has been sought.
What should it include?
The individual aspects of the agreement will vary from couple to couple depending on their circumstances, however, there are certain areas that any cohabitation agreement should cover.
These include:
- What happens to any assets that you purchased before you moved in together
- What happens to any assets that you purchased together
- What the financial and care responsibilities for each party regarding any children
- How all household bills and expenses will be covered whilst cohabiting
- Who is responsible for any household debts
- How should the shared home be dealt with if the couple separates
These agreements are used to include provisions of what should happen to certain assets in the event of the death of either party. However, preparing a legally binding Will is still the best way to do this.
Cohabitation Rights Bill
The Cohabitation Rights Bill is currently under consideration in Parliament.
The proposed changes would allow couples with children, or couples without children who have lived together for two or more years, the right to apply for a financial settlement.
To qualify for this settlement, you would need to either show that you have suffered an economic disadvantage due to the relationship or that you have made a contribution to the assets which can be financial or something like caring for the children and maintaining the home.
How can we help?
At Knightsbridge Solicitors we are passionate about supporting you with your family and relationships.
Our team of family law specialists have extensive knowledge regarding cohabitation agreements and can advise you through the whole process, including the drafting of an agreement. Contact us today on 0115 824 1700 to arrange a free 30-minute consultation or get more information.