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Moving in with a loved one is an exciting time and the last thing on your mind is likely to be the seemingly unromantic notion of making a plan for what should happen to your finances, property and children while you live together or if you split up or die.

However, if you plan to stay together long term, it’s worth considering the potential benefits of a cohabitation agreement. Cohabiting couples don’t have the same automatic legal rights as married couples when a relationship ends, which can result in financial uncertainty and potentially costly disputes.

What a cohabitation agreement can cover 

Every cohabitation agreement will be different, depending on the needs and circumstances of the couple involved, but will typically outline the rights and duties of each cohabitee regarding their property and finances while they live together, as well as detailing what will happen if they split up.

Arrangements commonly covered in a cohabitation agreement include:

• next of kin rights in a medical emergency;
• rights to each other’s pension;
• each party’s legal and beneficial interest in the property they share; and
• who does what and who pays for what.

In the event that you should separate, the agreement can outline:

• how assets and debts will be allocated between the couple;
• what will happen to any children of the relationship; and
• who gets the pets.

Who else can benefit from a cohabitation agreement?

As well as giving you and your partner certainty of your roles and responsibilities as a cohabiting couple and beyond, if you split up or one of you dies, a cohabitation agreement can be used to give peace of mind to other people.

For example, the bank of mum and dad may have paid, or be planning to pay, the deposit on the home that you and your cohabitee share, but want to protect this sum.  Similarly, if you move into a property owned or financed by the family, such as on a farm, they may wish to ensure that the property remains in the family if you and your partner break up.

Cohabitation agreements are also not just for romantic couples – they can also be a useful tool for providing assurance for anyone who decides to share a property with someone as a housemate, such as a friend or relative.

Broaching the subject

You may be hesitant to propose a cohabitation agreement, fearing that your partner will see it as a sign that you have doubts about the future of your relationship.

However, they may also see the eminent sense in this course of action if you emphasise that the agreement demonstrates that you are thinking in the long-term and it will benefit each of you. Without one, your partner would not have an automatic right to your property or estate (even if you have children together), access to your pension or bank account and will not be considered next of kin if you have an accident.

If you are planning to rent or buy a property together then you will have to provide a wide variety of financial information to the landlord or lender to demonstrate that you can afford the monthly payments.  While you are looking at your finances, it makes sense to consider some ‘what if’ scenarios and ensure that you are prepared if your situation should change.

Practical steps

Before a cohabitation agreement can be drawn up, your solicitor will need to know:

• if you rent or own a property and, if you own it, whether it is in both your names as joint tenants or tenants as common, or one person’s sole name;
• who paid for any improvement work made to your property;
• how much you both earn;
• whether you have children; and
• your wishes and objectives.

You can visit a solicitor together to decide on the initial draft of the agreement. If you are initiating and paying for the drafting of the agreement, your partner will need to consult a separate solicitor before the agreement is signed, to ensure its terms reflect and protect the interests and wishes of you both. If such independent legal advice is not taken, the agreement may be deemed invalid and therefore not legally binding.

A cohabitation agreement can be drawn up at any time, but ideally it should be drafted and executed before you move in together to give you and your partner peace of mind about the future.

How a solicitor can help

Our experienced family solicitors can draft a cohabitation agreement according to both of your wishes and will make sure it is legally binding and properly executed.

For further information, please contact one of our Family Law experts for further advice.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.