Domestic Bliss: A Complete Guide To Cohabitation Agreements

Living with your partner can be incredibly exciting and rewarding. However, cohabiting without clear agreements can often lead to misunderstandings and arguments. A cohabitation agreement is designed to provide a framework that outlines the expectations and responsibilities of each party, clarifying what each has a right to.

In this guide from our experts at Beckett Solicitors, you can discover what cohabitation agreements are, why and when they are used, and how they can be beneficial. You will also learn how to begin establishing a cohabitation agreement with the help of legal professionals.

What is a Cohabitation Agreement?

Cohabitation agreements are legal documents that outline how you and your partner will handle finances, property, and responsibilities while living together. These are used by unmarried couples to ensure that they have some legal rights in the event of a change in their relationship.

Regardless of how long a couple has lived together, they will not have the same rights as a married couple. Cohabitation agreements help to protect both parties in a scenario if they split up, or if one party becomes seriously ill or even dies.

Things to Include In a Cohabitation Agreement

Cohabitation agreements need to provide a comprehensive understanding of each party’s rights, ownership of assets, and responsibilities. When two people begin living together, the lines of sharing a property can become blurred. In this scenario, cohabitation agreements can become crucial, as they help to define and protect the interests of each party. Below, find two examples of things to include in a cohabitation agreement.

Property

As a large asset, property is worth considering carefully as part of a cohabitation agreement. This could include property that is owned by a single party or both jointly. A cohabitation agreement should clearly outline how the responsibilities of sharing a property should be split up, and who will take possession of this property in the event of a break-up.

Bills and Expenses

Bills and expenses are worth being included in a cohabitation agreement, designed to prevent future disagreements. Financial arrangements can often be a source of tension for unmarried couples. For example, if one party is a stay-at-home parent, they will be unlikely to be able to pay for the majority of the household expenses alone. By agreeing on who will pay for certain bills and expenses in a cohabitation agreement, it is clear which party will pay for which costs.

When is a Cohabitation Agreement Needed

Due to the costs and expenses involved, or simply due to preference, many couples choose not to get married or enter into a civil partnership. Below, discover some of the scenarios in which it might be worth getting a cohabitation agreement as unmarried partners.

Buying a Home

Purchasing a property is a large financial investment for a couple to make, particularly if they are unmarried. It involves significant amounts of money, as well as potential long-term financial obligations. Given these complexities, each party must know their rights and responsibilities from the outset.

To help protect both parties in the event of a dispute or separation, a cohabitation agreement can provide clarity. It should ensure each individual knows their financial and legal standing. This can be especially important if the payments towards the home are not evenly distributed.

Cohabitation agreements can also often cover what will happen if the property is sold or if one party chooses to move out. By proactively explaining what each individual is entitled to in this situation, it lessens the likelihood of stressful disputes.

Having Children

If you’re having children with your partner, it may be worth making a cohabitation agreement. Cohabitation agreements can address the practical aspects of parenting, as well as the financial responsibilities. In the event of a relationship breakdown, cohabitation agreements can help to prevent disputes about custody and visitation, and help determine where a child should primarily live. This can help to reduce the stress involved with the practicalities of separating as an unmarried but cohabiting couple.

Clarifying Financial Contributions

If there is a significant change in the earnings of one or both parties in a cohabiting relationship, it’s often worth clarifying the financial contributions in a cohabitation agreement. It’s rare for financial contributions between a couple to be split exactly evenly, typically as a result of differences in wages and responsibilities. While a verbal agreement is often sufficient, creating an agreement regarding the financial contributions of each party can help to reduce the risk of disputes later down the line.

Starting a Cohabitation Agreement

To start a cohabitation agreement, you will need to consult with a solicitor. An expert in cohabitation law can provide guidance that is tailored to your specific situation, ensuring that the agreement is legal and covers all aspects necessary.

When you visit cohabitation solicitors, they will likely ask you and your partner about your existing assets. Before you make an appointment, therefore, it’s worth taking a look at your individual and shared assets and how you would want them to be split. Your answers will give the solicitor a better understanding of your situation and the considerations involved in your relationship.

The key questions cohabitation solicitors might ask each of you include:

●      How much are your assets worth?

●      Do you own property? If so, whose name is it in?

●      What do you earn?

●      Do you have any children?

Key Questions About Cohabitation Agreements

It’s natural to have questions about cohabitation agreements, particularly if you’re considering establishing one for you and your partner. The thought of entering into a legal agreement with your partner about your relationship may feel daunting, but it can provide invaluable security for each of you. Below, you can find the answers to some key questions about living together agreements.

Can cohabitation agreements be changed?

In the event of a significant change to your relationship, such as a property purchase or a new child, you will want to update your cohabitation agreement. Thankfully, cohabitation agreements can be changed after being established. If you feel you need to update your living together agreement, our team at Beckett Solicitors would be happy to help.

What happens if an individual dies?

If the person you have a cohabitation agreement with passes away, the agreement can serve as a valuable tool to help protect your interests during a challenging and emotional time. Unmarried couples have no automatic right to inherit from each other without a Will. Though it’s important to note that a cohabitation agreement will not override a legally valid Will, it can reinforce the intentions laid out in the Will. In some cases, cohabitation agreements can include information not explicitly laid out in the Will, too, often making them even more useful.

Invest in Peace of Mind

Relationship breakdowns can leave you vulnerable and entitled to very little. To protect yourself and your partner, without getting married, cohabitation agreements are often a suitable solution. By getting a cohabitation agreement, both you and your partner are afforded peace of mind. This legal document ensures that each person’s contributions are both recognised and respected.

Our Services at Beckett Solicitors

As cohabitation law experts, our team at Beckett Solicitors can help you safeguard your financial and legal interests if you’re living with your partner. Based in Rainham, we take pride in supporting families in the local area. We can help you create comprehensive living together agreements, protecting each party in the event of a relationship breakdown.

Please visit our website to explore our range of legal services at Beckett Solicitors, from divorce to child custody. Alternatively, get in touch with us directly for further information and support.