Is a Cohabitation Agreement Right for You?
2nd October, 2024
If you consider yourself to be in a long-term relationship, and are thinking to move in or buy a house with your significant other, it is worth considering if you should enter into a Cohabitation Agreement.
In this article, we’ll outline what a Cohabitation agreement is, provide pros and cons, and show how a family solicitor can help.
What is a cohabitation agreement?
A cohabitation agreement sets out the arrangements between people who wish to live together. Usually, they are entered into by couples in a long-term relationship who decide to live together but who are not married or in a civil partnership at the time. However, they can also be used for friends who are living together who’ve decided to contribute to joint household expenses.
The agreement can record many aspects of the financial positions of the parties including the property purchase contributions made by both parties, the bill-paying arrangements, and outlines what will happen to the property in the event of separation/ the end of cohabitation.
If you’re a couple with children, a cohabitation agreement can set out the financial provisions to be made if the relationship comes to an end. This will hopefully allow both parties to set out who will pay for what without lengthy disagreements.
The positives
- Firstly, it is good to enter a cohabitation agreement as it can prevent costly litigation should your relationship come to an end.
- It encourages both parties to think about their financial arrangements, and be open about both their financial obligations.
- If one party has invested more into the property than the other, cohabitation agreements can preserve this investment.
Possible negatives
- The courts do not automatically enforce Cohabitation Agreements, and they may be contested upon contract principles.
- The cost may be a disincentive as people starting a relationship or arrangement are typically reluctant to pay the additional expenses of preparing and signing a Cohabitation Agreement under conditions where:
- They do not consider a collapse in such partnership or arrangement; and
- They are stretched financially due to the recent property costs.
Seeking help from a cohabitation agreement solicitor
Cohabitation agreements make sure that everyone knows what they own, what they need to pay for, and what they can expect from their partner.
Get in touch with one of our family solicitors if you want to buy a house with someone else or if you have any questions about living agreements or another area of family law. They will be happy to talk to you and help make sure both wishes are met and are legally binding.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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