If you’re planning to move in with your partner, or you’ve already been living together without marrying, it’s important to understand that unmarried couples do not have the same legal rights as married couples. There is no such thing as a “common law marriage” in England and Wales. A cohabitation agreement allows you to decide in advance what should happen if your circumstances change, reducing the risk of costly disputes down the line.
Cohabitation agreements are often used where one person already owns a property and their partner moves in, particularly where the new partner will be contributing towards the mortgage. They are also commonly used where one partner is contributing a larger deposit towards a property purchase, or where a couple simply wants certainty about how property and finances will be dealt with if they later separate. They can also be valuable for friends or family members who buy or own property together.
Led by Sobiah Hussain, Head of Private Family Law, our team advises clients across England and Wales on all aspects of cohabitation agreements. Whether you’re putting an agreement in place before moving in together, reviewing an existing agreement or looking to protect significant assets, we can advise on the legal implications, prepare a bespoke agreement and help maximise the likelihood of it being upheld should it ever be challenged.
What a Cohabitation Agreement Can Cover
There is no standard template for a cohabitation agreement – every agreement should reflect your individual circumstances and can cover:
- Ownership of property and the parties’ shares.
- Rent, mortgage payments and household bills.
- Savings, investments and joint bank accounts.
- Personal possessions and jointly purchased items.
- Responsibility for debts.
- Financial arrangements if the relationship ends.
- Financial arrangements if one of you becomes seriously ill or dies, alongside appropriate wills and estate planning.
- Intentions regarding financial arrangements for children.
Are Cohabitation Agreements Legally Binding?
A properly drafted cohabitation agreement can be legally binding provided it is intended to create legal relations, is correctly executed and both parties have entered into it freely.
To maximise the likelihood that an agreement will be upheld, both parties should:
- Obtain independent legal advice from separate solicitors.
- Provide full and honest financial disclosure.
- Enter into the agreement voluntarily and without pressure.
- Ensure the agreement accurately reflects their intentions.
In our experience, many disputes arise because couples rely on informal conversations or assumptions about what would happen if they separated. A carefully prepared agreement provides certainty and significantly reduces the scope for later disagreement.
How Our Cohabitation Agreement Solicitors Can Help
Every couple’s circumstances are different, so the agreement should reflect your particular situation rather than relying on a standard template.
We can advise whether a cohabitation agreement is appropriate, prepare a bespoke agreement tailored to your circumstances, review or update an existing agreement, and advise on related matters such as Declarations of Trust, property ownership, wills and pre-nuptial agreements.
If your relationship has already broken down and there is a dispute over property ownership or financial contributions, we can also advise on resolving matters through negotiation, mediation or, where necessary, TOLATA proceedings.
Obtaining legal advice before problems arise is often considerably simpler, quicker and less expensive than resolving a dispute after a relationship has ended.
Sobiah Hussain
Partner, Solicitor-Advocate, Collaborative Law Practitioner & Head of Private Family Law
Meet the teamCohabitation Agreements – Key Information
A Declaration of Trust is a separate legal document that records each person’s beneficial interest in a property, in other words, what share they own, regardless of whose name appears on the legal title.
It is often prepared alongside a cohabitation agreement rather than instead of one. Whilst a cohabitation agreement deals with the wider financial arrangements between the parties, a Declaration of Trust specifically records ownership of the property itself. Together, they can provide much greater certainty if circumstances later change.
We can advise whether a Declaration of Trust would be beneficial in your circumstances and prepare both documents together where appropriate.
Online templates can appear to be a quick and inexpensive solution, but they are designed to suit a wide range of situations rather than your individual circumstances.
In our experience, the biggest problem with DIY agreements is often not what they say, but what they fail to address. Issues such as existing property ownership, unequal financial contributions, inheritances and changing circumstances can easily be overlooked. It is also common for poorly drafted agreements to leave uncertainty about whether the parties intended them to be legally bound.
If you have already prepared your own agreement, we can review it, explain whether it is likely to provide the protection you intended and recommend any amendments where appropriate.
A cohabitation agreement is designed for couples who are not married or in a civil partnership. If you later decide to marry, it is sensible to review the arrangements you have in place, as a different legal framework will then apply.
In many cases, replacing a cohabitation agreement with a pre-nuptial agreement before the wedding provides more appropriate protection and helps ensure the arrangements continue to reflect your intentions throughout the marriage.
A cohabitation agreement should not necessarily remain unchanged forever. Relationships and financial circumstances often evolve over time. You may purchase a property together, have children, receive an inheritance or simply find that the agreement no longer reflects how you organise your finances.
Reviewing your agreement following a significant change in circumstances helps ensure it continues to provide the protection you intended. Where necessary, we can advise on updating the agreement so that it accurately reflects your current arrangements.
Meet the Private Family Law Team
Sobiah Hussain
Partner, Solicitor-Advocate, Collaborative Law Practitioner & Head of Private Family Law
Irrum Shah
Senior Associate Solicitor
Alison Page
Senior Associate Solicitor
Emma Macdonald
Chartered Legal Executive
Frequently Asked Questions
A Cohabitation Agreement is sometimes referred to as a ‘living together agreement’. It is a legal document which outlines how an unmarried couple will manage their assets and financial matters whilst living together. It also outlines what will happen to such assets in the event of a separation, illness or death.
An unmarried couple refers to anyone who has not entered into a marriage or civil partnership. This includes both romantic partners and non-romantic partnerships (such as friendships or siblings) which wish to live together.
Such a contract can provide a level of security, protection and peace of mind between two people who are not protected by the same rights afforded to a couple in marriage.
A cohabitation agreement can cover:
Property:
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- Ownership of land and property
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- How each of you have contributed to the deposits of property
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- Jointly bought items such as cars, furniture
Finances:
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- How joint bank accounts will be handled upon separation.
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- How any debts will be handled upon separation.
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- How each person contributes to expenses including rent, mortgage or household bills
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- Life insurance policies on each other
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- Nominated pension beneficiaries
Pets and Children:
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- What will happen to any pets that are owned by the couple.
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- How will any children be supported.
Any unmarried couple (whether a romantic couple or a partnership of some sort) who plan on living together should consider making a cohabitation agreement.
If you are planning to, or are currently living with your partner, friend or sibling then a legal agreement could be useful. By creating a legal document outlining your financial responsibilities and assets, you may prevent issues and disagreements in the future.
No. Unmarried couples do not automatically have the same legal rights as couples who are married or in a civil partnership.
There is no “common law marriage” in England and Wales, regardless of how long you have lived together or whether you have children. This can be particularly important if you separate, as the rules relating to property and finances are different from those that apply on divorce.
A cohabitation agreement can provide greater clarity about the financial arrangements you and your partner have agreed while living together.
A properly prepared cohabitation agreement can operate as a legally binding contract, although whether particular terms are enforceable will depend on the circumstances and how the agreement has been prepared.
Both parties should enter into the agreement freely, understand its terms and provide appropriate information about their financial circumstances. Each person should also obtain independent legal advice before signing.
Having the agreement professionally drafted can reduce the risk of uncertainty or disagreement about what was intended if the relationship later ends.
A cohabitation agreement can be particularly useful where one person already owns a property and their partner is moving in.
The agreement can record how mortgage payments, household bills and other expenses will be dealt with and what you both intend those contributions to mean. This can provide greater clarity about your financial arrangements if you later separate.
Depending on your circumstances, you may also need advice about property ownership or whether another document, such as a Declaration of Trust, is appropriate.
A cohabitation agreement can be useful when an unmarried couple buys a property together, particularly where they are contributing different amounts towards the deposit, mortgage or other costs.
It can record how you intend to manage your wider financial arrangements and what should happen if you later separate.
A Declaration of Trust may also be appropriate to record your respective interests in the property. Our family
To start the process of creating a cohabitation agreement it is recommended that you sit down as a couple (romantic or otherwise). Consider what assets you have individually and jointly, and how you wish them to be divided in the event of a separation.
You should consider:
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- Property – both rented and owned.
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- Investments and savings.
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- Debts and financial responsibilities.
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- Pensions and insurance.
When instructing a solicitor, they may ask for supporting documents as well as providing a full, formal financial disclosure.
You can prepare a cohabitation agreement yourself, but a generic template may not accurately reflect your property ownership, financial contributions or individual circumstances.
Unclear wording can also create disputes about what was actually agreed. Having the agreement professionally drafted and obtaining independent legal advice can help ensure that both parties understand the terms and that the document accurately records their intentions.
If you separate without a cohabitation agreement, there is no divorce-style process for dividing your property and finances simply because you have lived together.
Your legal position may depend on matters such as who owns the property, how it is legally held and the financial arrangements between you. Some disputes involving property can lead to claims under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).
If you are separating and are unsure about your rights to a property or other assets, our family law solicitors can advise on your individual circumstances.
The cost of a cohabitation agreement can vary depending on whether you both (as an ‘unmarried couple’) are on the same page or not. If you need to involve external negotiation or meditation in making the agreement, then costs can be increased.
If you both have settled on what the agreement should be and outline, then the process should be reasonably free of complications.
We offer an hourly rate which would typically come to around £1500 plus VAT.
Yes. A cohabitation agreement can be reviewed and updated where your circumstances change and both parties agree to the changes.
It may be sensible to review your agreement after buying or selling a property, having children, receiving an inheritance or making significant changes to the way you manage your finances.
If you later marry or enter into a civil partnership, your legal position will change and it is sensible to review the arrangements contained in your cohabitation agreement.
You may want to consider entering into a prenuptial agreement before the wedding. This can record how you intend property, finances and other assets to be dealt with if you later separate or divorce.
Our family law solicitors can review your existing arrangements and advise whether a prenuptial agreement would be appropriate.
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