More couples are choosing to live together without getting married or entering into a civil partnership. For many people, this feels natural and practical. They may buy a home together, share bills, raise children, or build a life as a couple. However, many people do not realise that living together does not give them the same legal rights as married couples or civil partners.
This is where a cohabitation agreement can help. A cohabitation agreement is a written agreement between people who live together, or plan to live together, and want to set out what they each own, how they will manage money, and what should happen if the relationship ends. It can also deal with what happens if one person becomes seriously ill or dies. This differs from a Declaration of Trust which only deals with property.
No matter how long a couple has lived together, they do not automatically get the same financial rights as a married couple.
Without an agreement, disputes can become difficult and expensive. For example, one person may have paid towards the mortgage, repairs, or household costs, but the property may be in the other person’s sole name. If the relationship breaks down, it may not be clear what each person is entitled to. A cohabitation agreement can reduce uncertainty by recording what the couple intended from the start.
The agreement can also help couples talk openly about money. These conversations are not always easy, but they are important. Agreeing arrangements early can prevent misunderstandings later.
A cohabitation agreement can be tailored to the couple’s circumstances. It commonly deals with property, savings, debts, household bills, and personal belongings. It can record who owns the home, who is responsible for paying the mortgage or rent, and whether either person should receive money back if the property is sold.
It can also cover everyday arrangements, such as how the couple will divide utility bills, council tax, insurance, food costs, or other regular expenses. If the couple has a joint bank account, the agreement can explain how that account will be used and what should happen to any money left in it if the relationship ends.
Some agreements include arrangements for children, although decisions about children must always focus on their welfare at the time. Couples may also want to think about pets, cars, furniture, business interests, or gifts from family members.
The best time to make a cohabitation agreement is usually before moving in together or before buying a property. However, it can be made at any time. It may be sensible to put one in place if a couple is having a child, taking out a mortgage, receiving family money towards a deposit, or making major improvements to a home.
It is also important to review the agreement when circumstances change. For example, the couple may move house, have children, change jobs, start a business, or receive an inheritance. An agreement that was fair and practical at the beginning may need updating later.
A properly prepared cohabitation agreement is intended to be legally binding. To give it the best chance of being upheld, both people should enter into it freely, understand what it means, and give full and honest information about their finances. It is usually signed as a deed, and each person should take independent legal advice before signing.
Independent advice is important because the agreement can affect valuable rights and assets. It also helps show that neither person was pressured into signing and that both understood the consequences.
Yes. A cohabitation agreement is not a substitute for a will. If cohabiting partners want to inherit from each other, they should make wills. Without a valid will, a surviving partner may not automatically receive anything from the other person’s estate.
A cohabitation agreement is not about expecting a relationship to fail. It is about clarity, fairness, and protection. It allows couples to make their own decisions while things are going well, rather than leaving important questions unresolved until a stressful time.
For couples who live together, or plan to do so, a cohabitation agreement can be a sensible and practical step. It can protect both people, reduce the risk of disputes, and give everyone a clearer understanding of where they stand.
