Cohabitation agreements

A cohabitation agreement is a document which sets out what the intention of the two parties who are living together, or who intend to live together, have in relation to property and finances generally.

A cohabitation agreement records what a couple agree should happen with the finances and property during the relationship and if the relationship were to end.

It can also set out what each party agrees should happen in the event of one of the parties dying. This must also be recorded in a will but it is helpful to set out the detail in a cohabitation agreement to avoid any issues in the future. If a couple lived together for more than two years, it is possible for the surviving partner to make a claim on the deceased partner’s estate. It is therefore important that a will makes their wishes clear but the cohabitation agreement will show that both parties were aware of and agreed those arrangements.

it is a common misconception that couples who live together are “common law husband and wife” and have protection under the law. That is not the case and this can lead to upset as well as financial hardship if the relationship breaks down.

There are certain rights regarding property which can be acquired by either party either at the outset when a property is purchased or during a relationship, depending on financial contributions or promises made between the parties. However, if the relationship breaks down and the parties do not agree how a property should be dealt with, it can be a very difficult process prove what was intended. If there are court proceedings taken, it comes down to the court making a decision but in property matters where couples are unmarried, the court has very limited powers.

• Where either or both parties have children from previous relationships and they wish to protect their respective financial contributions for their children in due course

• Having upfront conversations with your partner about property and money often takes away a lot of tension and worry about what may happen in the future, particularly if your relationship hits a bumpy patch.

• Investing a relatively small sum to confirm what you and your partner agree at the outset or during a relationship can potentially save you or your family thousands of pounds if things go wrong in the future.

Cohabitation agreements usually cost in the region of £600 plus VAT at 20% (£720 including VAT), however, we will give you a fixed fee quote when we have spoken to you about the detail of what you need.